PLANNED & TOTAL PRODUCTIVE MAINTENANCE

1. PLANNED & TOTAL PRODUCTIVE MAINTENANCE Sponsored by: Center for Excellence in Maintenance

2. A G E N D A SAHARA petrochemicals company & it’s 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

3. INTRODUCTION OF SAHARA PETROCHEMICALS COMPANY & IT’S AFFILIATES BY MR. NAHAR AL-KHALDI Maintenance Section Head, SAHARA

4. 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 world’s 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.

5. 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.

6. PLANNED & PRODUCTIVE MAINTENANCE BY MR. ABDULLAH AL-DALAAN Maintenance Planning Section Head, SAHARA

7. 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.

8. 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.

9. 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.

10. MAINTENANCE PM STRATEGIES On-Failure Condition Based Maintain equipment when it has failed to fulfill its function. Maintain equipment based upon its known condition. Maintenance Plan Fixed Time Design Out Redesign equipment to eliminate root cause failure. Maintain equipment based upon fixed time.

11. SELECTING MAINTENANCE STRATEGY FORMAT

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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 / KPI’s Implementation plan / SAP PM Strategy Selection Equipments assessment

18. KEY PERFORMANCE INDICATORS • Represented as PM Work Orders Completed on Schedule PM Work Order due 100 • Target/ Suggested Value. • 100% • PM Schedule Attainment Derived by comparing the Preventive orders completed on scheduled to the number of PM tasks scheduled/due.

19. 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 100 • Target/ Suggested Value. • 40 – 60%

20. C O N C L U S I O N • 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. That’s why it’s important to do the least amount of work, at the least cost, which will still meet your expectations for reliability.

21. THANKS