Page 29 - Subyek Teknik Mesin - Forsthoffers Best Practice Handbook for Rotating Machinery by William E Forsthoffer

Project Best Practices Be st Practice 1.1
the individuals involved seldom have the opportunity to ob- The most important factor in life cycle cost considerations is
serve how their client operates and what their objectives are. daily revenue, and obtaining this figure should be the number
Since 1990, as a rotating equipment consultant engaged in one priority in the early stages of the project. It will be a key fact
troubleshooting, machinery selection and revamps and site in obtaining management support for your project action plans.
specific operator, maintenance and engineering training, I have Figure 1.1.6 presents these facts.
faced other challenges, but the similarities are striking and the
challenges are the same. These facts are noted in Figure 1.1.3.
Is the amount of revenue obtained in 24 hours of operation
Trip of an un-spared item = exposure to revenue loss
Both vendors and clients have limited experience bases Daily revenue values can range from 1MM$ to 5MM$+
Decisions are made quickly, often without benefit of all the Always justify project scope requirements on the basis of daily
pertinent facts revenue loss
Most projects are run on the basis of minimum capital investment Assign an actual daily revenue loss amount to each proposed
and not life cycle cost best practice if it is not implemented
Implementation of action plans is slow
Vendor and end users interface infrequently– usually only during
field failures Fig 1.1.6 Daily revenue

Therefore, the company life cycle revenue and profit po-
Fig 1.1.3 Contractor/consultant lessons learned
tential will be a result of incorporating all of your project best
practice requirements into the project action plan at the first
Based on my experience, I have learned, most of the time
the hard way, that all three of these groups (vendors, con- opportunity, before the first project budget estimate is pre-
tractors and end users) have the same objective but different pared. Figure 1.1.7 shows the advantages of incorporating this
philosophy as early as possible into the project.
means of obtaining that objective. Figure 1.1.4 presents these
facts.

Everyone has the objective of maximum profits but the means to
accomplish this end is different:
Vendor – designs for minimum cost
Contractor – engineers and installs for minimum cost
End user–must operate the custom designed equipment 24/7 for
30 years. Therefore, the end user's objectives can be directly
opposed to the vendor's and contractor's!

Fig 1.1.4 The objective – maximum profits
Fig 1.1.7 The life span of rotating equipment

It is important to remember these facts at all times during the
entire project. The information contained in the following figure This action should be taken when the project is first an-
should be the basis for convincing the project team that all de- nounced, and the project team is assembled. The approach
cisions regarding equipment purchase should be made on the taken during the first 3–6 months after the initial project kick-
basis of process unit life cycle cost and not capital cost and/or off will determine the level of reliability and life cycle cost
schedule considerations. The specific objectives of the end user savings for the entire life of the process unit (over 30 years).
are presented in Figure 1.1.5. Most important is the necessity of establishing immediate
creditability with the project team so that your ideas will be
implemented.
Maximum machine reliability Hopefully, the above information will be of use in your
Minimum operating cost project involvement in terms of lessons learned. The resulting
Minimum time to repair best practices should be developed into a project philosophy
These objectives result in.............................maximum up time that will eliminate all the issues noted above, and will obtain and
which will yield............................................. maximum revenue maintain your management’s support throughout the entire
and..................................................................... maximum profits
For the entire life cycle of the process unit! project; from the pre-feed phase to field operation.
Note that while this book is concerned with rotating equip-
ment best practices, many of the principles are equally appli-
Fig 1.1.5 End user specific objectives for maximum profit cable to all assets included in a project.

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