AGENDA

SAHARA PETROCHEMICALS COMPANY & ITS AFFILIATES

INTRODUCTION OF SAHARA PM PHILOSOPHY TYPICAL ASSET MANAGEMENT CHALLENGES MAINTENANCE STRATEGIES PLANNED MAINTENANCE PHILOSOPHY PM SYSTEM ESTABLISHMENT PM SYSTEM IMPLEMENTATION KEY PERFORMANCE INDICATORS CONCLUSION

INTRODUCTION OF SAHARA PETROCHEMICALS COMPANY & ITS AFFILIATES BY

SAHARA PETROCHEMICALS COMPANY

INTRODUCTION The "SAHARA Petrochemicals is : a Saudi joint stock company established in 2004, with a paid up capital of 1 Billion and 875 Millions Saudi Riyal. It participates and supervises establishment of several limited liability companies in Al Jubail Industrial City with the participation of Saudi and foreign companies that have the modern skills and technologies. VISION To be amongst the worlds leaders in promoting petrochemical and chemical business, utilizing state of the art technologies and building effective strategic alliances and synergies. MISSION To provide quality petrochemical and chemical products and attract customers by investing and developing safe, environment friendly, reliable facilities to meet customer needs and shareholders expectations and to motivate our employees.

SAHARA AFFILIATES
AL-WAHA PETROCHEMICALS AL WAHA Petrochemicals Company is a joint company of limited liability which was developed by "SAHARA Petrochemicals" and LYONDELL BASSELL companies with ownership of 75% and 25% respectively. It was established in September 2006 to construct, own, and operate a Petrochemical complex on an international scale to produce 460.000 tons of Propylene .This works as a feedstock for 450.000 tons Poly Propylene production which will be sold both in regional & international markets. SAHARA & TASNEE OLEFINS SAHARA & TASNEE OLEFINS is a closed joint stock company with a capital of 2 Billions and 400 Millions SR. "SAHARA " owns 32.55 % of its capital. The company objectives are represented in the construction, management, operation, owning and investing in industrial projects especially petrochemical and chemical industries and marketing its products. SAHARA & TASNEE OLEFINS Company's projects are: 1. Saudi Ethylene & Polyethylene Company 2. Saudi Acrylic Company SAHARA & MAADEN PROJECT SAHARA & MAADEN Project will be a joint project between "SAHARA Petrochemicals" and the SAUDI ARABIAN MINING COMPANY (MAADEN). The project aims to produce 250.000 tons of caustic soda and 300.000 tons of Ethylene dichloride annually.

PLANNED & PRODUCTIVE MAINTENANCE BY

INTRODUCTION OF SAHARA PM PHILOSOPHY

We at Sahara company have started implementing ERP/SAP system for our

plant maintenance activities using our experience and best world maintenance practices.
We believe now maintenance is not repair function any more .However, maintenance is a sophisticated & intellectual function which is driven by

information.
It is noticed in such system if Preventive Maintenance Program is not developed & reviewed properly , maintenance will end up with a lot of PM that is not required and many resources being utilized unnecessarily i.e. manpower, spares and other services . These resources can be reduced by establishing proper PM/PDM strategy and program i.e. tasks and frequency.

INTRODUCTION OF SAHARA PM PHILOSOPHY

We have formed a team from Maintenance Specialists & Engineers to develop Preventive Maintenance strategy :

Maintain Plant Reliability & Safety

Extend equipment life cycle

Improve planning and scheduling system effectiveness Minimizing execution time

Optimize maintenance cost

The overall program will be monitored through maintenance Key Performance Indicators.

TYPICAL ASSET MANAGEMENT CHALLENGES

Establishing plant criticality to prioritize allocation of resources. Introduce multi-skill programs (easy maintenance, TPM, etc;). Maximize people energy efficiency. Improve plant hygiene and housekeeping. Establishing common strategies for purchase of consumables and spares. Establishing Life Cycle Costing as the basis for equipment procurement. Maximize production Overall Equipment Effectiveness . Reduce Plant shutdown (turnaround). Develop & Implement Key Performance Indicators. Optimize maintenance costs per ton of production. Reduce spares inventory.

MAINTENANCE PM STRATEGIES
On-Failure
Maintain equipment when it has failed to fulfill its function.

Condition Based
Maintain equipment based upon its known condition.

Maintenance Plan

Fixed Time
Maintain equipment based upon fixed time.

Design Out
Redesign equipment to eliminate root cause failure.

SELECTING MAINTENANCE STRATEGY FORMAT

Maintenance PM Strategy
Condition Based Fixed Time Design Out

Equipment / Why it fails

Air Handling Unit / Falls off due to poor fixture

Pump / Seal Leaks

Plain Bearing / general wear

Pump Bearing / misaligned during installation

On-Failure

PLANNED MAINTENANCE PHILOSOPHY (1 OF 2)

The objective of PM philosophy is to deliver highest level of reliability adequate with business needs, in the optimum cost-effective manner, taking in to account both maintenance and production related costs. PM philosophy shall be considered to be a planned preventive or productive maintenance program, which is based on equipment assessment and predictive procedures. Company wide standardization of operating systems requires that we remain consistent in the development and administration of the PM program. This will ensure that we perform the same maintenance, using the same method, on similar equipment throughout the organization. The PM program will be delivered to our plants and will be derived from "guideline plant" concept.

PLANNED MAINTENANCE PHILOSOPHY (2 OF 2)

The type and frequency of tasks assigned to equipment PM is based on equipment criticality .

All tasks can be considered into two categories ( Mandatory & Optional )
PM system include the method of recording equipment condition. This will be used as a reference to determine the optimum PM frequency. Each PM task is done by a competent person with right skills. Spare parts management system is integrated with SAP system to ensure spares required to achieve maintenance tasks are readily available at the point of need. PM frequency shall be reviewed and adjusted periodically based on the history and the criticality of the equipment.

PM SYSTEM ESTABLISHMENT
Recommended Maintenance Intervals Guideline used to build up the basic PM task frequency for each equipment. Maintenance Specialist / Engineer generate task list details for each equipment. Identify level of priority by using SAP work order management system. Some tasks are governed by Legal, HAZOP, or procedural requirements and are considered mandatory, unless exemption has been obtained.

PM SYSTEM ESTABLISHMENT (Cont)

During the life of the plant, task frequencies may be further changed as a direct result of the condition in which the equipment is found while doing a PM task. Plant specific PM program will be developed utilizing the tasks in the Guideline Plant. The first issue of the plant specific program will be a minimum of 85% complete and is to be issued by the time the plant is handed over after commissioning. This process of customization, to produce a Plant Specific PM program, is the overall responsibility of the Maintenance Manager supported by Technical and Reliability Manager.

PM SYSTEM IMPLEMENTATION
Normal tasks with a frequency of weekly or more are included in the computerized PM program (SAP). All downtime maintenance (Turnaround ) tasks are included in the PM program to serve as a basis for planning maintenance work. Compliance of all PM tasks is required and should be documented after completion of the work. A decision on whether or not to perform optional downtime task should include the following: Input from the Technical & Reliability engineer on the condition of the equipment, and the potential reliability impact. Input from the production manager as to the cost associated with the required downtime. Input from maintenance on the cost of performing the PM.

PLANNED MAINTENANCE PHILOSOPHY PROCESSES

CMMS/SAP Master Data Formed Team from Maintenance Specialist /Eng. Previous experience & Best Practices PM Philosophy Development

PM tasks Guideline

Review implementation / KPIs

Implementation plan / SAP

PM Strategy Selection

Equipments assessment

KEY PERFORMANCE INDICATORS

PM Schedule Attainment Derived by comparing the Preventive orders completed on scheduled to the number of PM tasks scheduled/due.
Represented as

PM Work Orders Completed on Schedule PM Work Order due

Target/ Suggested Value.

100

100%

KEY PERFORMANCE INDICATORS

Preventive Maintenance Rate

Derived by dividing the preventive maintenance man-hours by the total man-hours of maintenance work.
Recommended Use

For determining PM man-hours being utilized.

Represented as

Preventive Maintenance Man hours Total Maintenance Hours

Target/ Suggested Value.

100

40 60%

CONCLUSION
Preventive Maintenance activities can have a significant impact on maintenance and manufacturing waste as a result of both under-maintaining and over-maintaining.
The problem of over-maintaining receives little attention in comparison with under-maintaining. The choice of Preventive Maintenance frequency impacts the total cost of the Preventive Maintenance program. Every PM work order is an authorization to spend money. Thats why its important to do the least amount of work, at the least cost, which will still meet your expectations for reliability.