AN APPLICATION OF VALUE STREAM MAPPING FOR

TURNAROUND MAINTENANCE IN OIL AND GAS

INDUSTRY: CASE STUDY AND LESSIONS LEARNED
Shou Wenchi1, Jun Wang, Xiangyu Wang and Heap-Yih Chong
School of Built Environment, Curtin University, Perth, Australia

Turnaround maintenance (TAM) in oil and gas industry concerns significant

endeavours that deal with inspections, scheduled cleaning, adjustments, repairs and
replacements of part of a plant to ensure operational reliability. It involves labour and
material-intensive activities, thus is of the essence to minimize the financial impact.
However, relevant research revealed that current process improvement strategies for
TAM are random, isolated and scattered, improving individual activities in schedules
without a systemic consideration of the entire process. Value Stream Mapping
(VSM), a process of mapping the material and information flows in a value stream
through systematic data capture and analysis, has showed its benefits in identifying
and eliminating waste under various circumstances. This paper uses a case-based
approach to measure efficiency improvement in TAM activities through VSM. The
TAM project for a selected Liquefied Natural Gas (LNG) refinery plant is selected
and analysed as a case study. This paper develops a current state map and a future
state map to explore the wastes and root causes. The case study reveals that although
some challenges and limitations, VSM is feasible in TAM project to improve the
efficiency by identifying wastes in process and guiding value improvement.

Keywords: value stream mapping, lean thinking, turnaround maintenance, oil and gas
industry.

INTRODUCTION
Oil and Gas industry in Australia is a major component of Australia’s economy and
will continue to contribute to the prosperity. To be competitive in globalization,
reliable production plants and high production efficiency are essential efforts to
reduce cost (Lenahan 2011). It is notable that the performance of production is heavily
influenced by maintenance productivity (Parida and Kumar 2009). This is because
production is supported by complex capital equipment and machinery in oil and gas
industry. Major maintenance activities, such as turnaround maintenance (TAM), are
prime contributors towards the overall reliability and effectiveness of the plant. The
challenges of international competition have placed great pressure on maintenance
system.
TAM, also known as shutdown or outage maintenance, concerns significant
endeavours that deal with inspections, scheduled cleaning, adjustments, repairs and
replacements of a plant to ensure operational reliability, it is carried out when plants
are shutdown (Duffuaa and Ben Daya 2004). The main objective of TAM is to
improve the plants to ensure optimal and efficient performance and keep maintenance

1
[email protected]

Wenchi, S, Wang, J, Wang, X and Chong, H-Y (2015) An application of value stream mapping for
turnaround maintenance in oil and gas industry: Case study and lessions learned In: Raidén, A B and
Aboagye-Nimo, E (Eds) Procs 31st Annual ARCOM Conference, 7-9 September 2015, Lincoln, UK,
Association of Researchers in Construction Management, 813-822.
Wenchi, Wang, Wang and Chong

cost effective. In oil and gas industry, TAM plays an important role in sustaining long-
term stability and continuous production of plant. According to Obiajunwa (2012b)’s
research, it is necessary to shut down every 2 years to avoid unscheduled breakdowns
which can have significant impact on the profitability. A proper TAM can lead to
increased reliability and technical integrity that leads to a more predictable workload
in the industry and effective maintenance work planning. However, this kind of
project is usually very costly, requiring a large number of workforces, material and
supporting resources to be involved in a short duration. Again, the loss of non-
producing during turnaround is added to the cost of TAM. Its peculiarities of short
duration, high capital, labour and material intensity, which make it become the large
complex, expensive and time-sensitive project. In order to be competitive, a well-
organized management process of conducing TAM is an essential part to improve
maintenance productivity and drive cost down. In this context, lean thinking has
gained attentions in oil and gas industry to improve the efficiency of the TAM process
from planning through to completion (Smith and Hawkins 2004).
Value stream mapping (VSM) is the most efficient tool of lean thinking and has
proved its value of increasing process visibility (transparency) (Klotz et al. 2008),
and its benefits in reducing lead time and inventory (Abdulmalek and Rajgopal 2007,
Seth and Gupta 2005, Singh and Singh 2012) in different areas. On an academic and
practical level, VSM has been presented as a practical method by visualising the
condition and interaction of actions. However, this remarkable tool has yet to be
applied in any work in oil and gas industry.
The main objective of this research is to explore how VSM can be adopted in TAM
uses a case-based approach. Based on a completed TAM project schedule, the map of
as-is state, proposed changes for future state, and a discussion of working plan are
carried out according to the guidelines of VSM.
LITERATURE REVIEW
In TAM related research, some studies have concentrated on guideline for a structured
approach for managing TAM in different phases (Duffuaa and Ben Daya 2004), some
on the management skills specific towards ensuring successful TAM projects (Cui,
Hayakawa and Obiajunwa 2013), others on project management in TAM activities
(Pokharel and Jiao 2008). Obiajunwa (2012b) developed a framework of success
measurement criteria for TAM projects. TAM success is evaluated from the
perspectives of management success, perception of stakeholders and resultant benefits
to the business. Project management techniques are still used to improve the
efficiency of TAM, for example, risk management is used as a practical tool in TAM
(Obiajunwa 2012a). It is acknowledged that project management is the main strategy
used to manage and coordinate TAM in current practice, the success and efficiency of
TAM project is measured by cost, time, safety, quality and scope (Ertl 2004).
However, this may not be the most optimum strategy to TAM, failures are still
common in practice. A new method is required for effective management of
performance on TAM project.
Lean thinking is a systematic approach for identifying and eliminating waste through
pull strategy in pursuit of perfection from customers’ perspective. It originally came
from automobile industry, developed from Taiichi Ohno’s notion of ‘reduce cost by
eliminating waste’ (Holweg 2007), which was initially well known as Toyota
Production System (TPS).The early contribution of TPS is a focus on “automotive
manufacturing-based view” (Hines, Holweg and Rich 2004) of shop-floor lean

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techniques (e.g. Kanban, five-S, pull, total productive maintenance, single-minute

exchange of dies (SMED), cellular manufacturing, for further reference see (Monden
1983)) to eliminate the waste. According to TPS, The seven most common types of
wastes which were originated by Ōno (1988) are overproduction, waiting,
transportation, inappropriate process, unnecessary inventory, unnecessary motions,
and defects.
In order to set up guidelines to solve the questions been raised when non-lean
production organization tries to convert to lean one, five lean principles of value,
value stream, flow, pull, and perfection, as the framework for organization to
understand the strategic approach of lean transformation, are summarised by Womack
and Jones (2010). One of the important lean principles - value stream, is ‘the set of all
the specific actions required to bring a specific product’ (Stone 2012), which defines
the work process from the view of 'actions'. Monden (1993) divided these actions into
three types: value adding, non-value adding but unavoidable and non-value adding
and immediately avoidable. These actions considered information as well as physic
flow within the overall supply chain. This principle focuses on the transparency of all
the steps in process within the elimination of waste, providing clear value adding steps
among all the participants, it awakens the awareness of drawing maps of individual
value streams to holistic view the interdependence of actions.
A number of value stream tools have emerged to reduce and eliminate wastes within a
value chain. Hines and Rich (1997) summarized seven mapping tools (namely,
process activity mapping, supply-chain response matrix, production variety funnel,
quality filter mapping, demand amplification mapping, decision point analysis and
physical structure mapping). However, they are poor in revealing the links and
visualizing the nature of the information and physic flows in entire value chain. VSM
is an information and physical process mapping tool of lean production popularized by
Rother and Shook (2003). It creates a common basis of the integral actions view in
value stream. VSM is emerged as the preferred way to support and implement the lean
thinking (Chen, Li and Shady 2010, Grewal 2008).
There are many studies related to VSM application in practice. VSM is used to
visualise and analyse the value-adding and non-value adding activities in entire value
chain from users’ perspective and then redesign work system based on Lean (Jones,
Womack and Shook 2003, Pavnaskar, Gershenson and Jambekar 2003, Rother and
Shook 2003). The benefits of VSM are reported by Seth and Gupta (2005) for lean
application and cycle time reduction. Mcdonald, Van Aken and Rentes (2002)
enhanced VSM by simulation. Abdulmalek and Rajgopal (2007) illustrated the VSM
benefits in reducing lead-time and lowing work-in-process inventory by developing a
simulation model. This kind of simulation research mainly focuses on answering
questions that could not be addressed only using the static view provided by
VSM. Some other research concentrates on solving the limitation of VSM
application. Braglia, Carmignani and Zammori (2006) proposed a new VSM approach
based on seven iterative steps analysis for complex non-linear production systems.
Braglia, Frosolini and Zammori (2009) proposed two alternative approaches based on
statistics and fuzzy algebra respectively to include variability analysis in VSM.
Although VSM is mainly used in manufacturing environment from the literature
review, Pavnaskar and Gershenson (2004) identified the differences and similarities
between a productive and an engineering process that enable the adaption of VSM for
use in engineering process. By a comparison to the objectives of TAM and VSM

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(table 1), it is apparently to see synergic objectives of them. Therefore, it is of value to

apply VSM to improve TAM efficiency in oil and gas industry. This paper uses the
five steps of VSM (Tapping, Luyster and Shuker 2002) to explore the value and
reduce waste in process of TAM.
1. Identify an analysis objective;
2. Current state map: graphical representation of the current state process (as-is
state) of the objective;
3. Future state map: work out a future-state lean process (benchmarking) within
the elimination of wastes by lean techniques;
4. Define working plan: execution strategies to narrow the gap between as-is state
and benchmarking;
5. Achieve the working plan
Table 1: comparison of objectives of TAM and VSM
Objective of VSM Objective of TAM
To visualize maintenance flow from material and To achieve higher corporate performance
information perspectives

To improve the process by applying lean To improve efficiency and throughout of plant by
techniques to short lead time suitable modification
To make plant safe to operate till next TAM
To reduce routine maintenances costs
To upgrade technology by introducing modern
equipment and techniques;
To achieve zero waste by identifying the source To increase reliability/availability of equipment
of waste during operation
To achieve the best quality of workmanship
To translate customer’s requirement into practice To modify operating equipment to cope with legal
processes requirements and or obligations such as
environmental regulation(Ben-Daya et al. 2009)

RESEARCH DEVELOPMENT
In this research, a case study is applied (Yin 2013) with a statistical analysis of data
obtained from one oil and gas plant shutdown project. Case study can suitably be used
for theory testing and refinement. Measurements in this research examine the
qualitative and quantitative dimensions of wastes: (1) the qualitative dimension
analyses the reasons behind the waste; (2) lean measurements are applied to measure
the efficiency of each stage in quantitative dimension. Due to the considerable
financial implications of any changes in TAM, the study is conducted based on
historic data of one particular past TAM project. VSM has been implemented using
the historic maintenance schedules provided by Company A, an oil and gas operator.
Value stream selection and data collection
The first important thing prior to the commencement of VSM is to select a value
stream. TAM in oil and gas industry concerns wide range of activities such as boilers,
heat exchangers, piping and even storage tanks repair or replacement for the reasons
of improvements or maintenance needs. In this case, it is about a compressor
replacement, 5 types of activity are contained. The type of activity that was chosen for
value stream study is spool removal. This is because on the one hand, a single map
encompassing the entire process would be too large and heavy for researcher to
handle. On the other hand, the actual duration (164 h) spent on spool removal is more

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than twice to the scheduled duration (75 h) which caused delay of the whole process.
As shown in table 2, spool removal is divided into 8 stages after considering the
logical relationship between the maintenance activities, with each stage considered as
an independent value stream in value chain.
Table 2: spool removal stages and attributes
Attributes Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Stage 8
Remove Releasing Removal Removal Removal Removal Balance Removal
insulation and elbow structural transition discharge line hot gas
measuring work spool removal recycle
CT 21 88 112 51 60 65 64 73
VAT 21 33 2 2 6 2 2 2
CO 0 52 86 28 34 44 51 48
Uptime 100% 41% 34% 45% 43% 32% 20% 33%
Based on the data, five key VSM measurements are calculated in table 2: (1) cycle
time (CT) is the duration that a stage needs to complete its work; (2) lead time (LT) is
the time that a activity needed between one task being stated to the end of a task being
completed. In TAM, in order to minimize the project duration, the stages are usually
carried out in parallel, therefore, the total cycle time is not the same as the lead time;
(3) changeover time (COT) which is the idle time that one stage needs to wait before
the completion of its preceding stage; (4) uptime is calculated by dividing actual
working time by cycle time; (5) actual working time is calculated by subtracting
changeover time from cycle time.
Current state map
Current state map is a diagram that is created to capture working processes using rules
created by Rother and Shook (2003). Value adding and non-value adding activities in
the information and physic flows of a value chain are visualised in the diagram as
interconnected processing steps. A list of process data such as cycle time, value-
creating time are recorded at each processing step. In this way, it is possible to track
orders throughout the value chain and to get an approximate valuation of the total lead
time of the process.
The current state map developed for spool removal activity is shown in Figure 1. It
illustrates the conventional approach using predefined icons of VSM. What the
customer demand in TAM is to satisfy the duration-driven maintenance plan, site
manager is the control centre of the whole process. Because of the characteristic of
uncertainty of work scope in TAM, the demand can vary significantly from day to
day. Therefore, the work schedule is not always the same.
A total of 8 stages are involved in this activity, it should be highlighted that the
scheduling of the spool removal is not constant but variable because of the duration
limitation and uncertainty as mentioned before. As cycle time delay in the first few
stages, this leaded to variations of schedule and resources (workforce, material and
facilities) in the whole process. For example, maintenance operation with low-value
added like realising and measuring takes up excessive resources, which means a
significant delay in the total lead time and a confusion of work schedule.
The information recorded in the data box is extracted from actual schedule which was
collected by site managers. The problem of information system is that different
professions plan and carry out their jobs separately; however, their jobs are highly
related and overlapped that make the system much more complicated.

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Site manager CT= cycle time

CO= changeover time
Last stage VAT= value adding time Next stage
Uptime= CT-CO

Remove insulation Releasing and Removal elbow Removal structural steel Removal transition Removal discharge Balance line removal Removal hot gas recycle
measuring work spool

CT= 21h CT= 112h CT= 65h CT= 64h

VAT= 21h CT= 88h VAT= 2h CT= 51h CT= 60h VAT= 2h VAT= 2h CT= 73h
CO= 0h VAT= 33h CO= 86h VAT= 2h VAT= 6h CO= 44h CO= 51h VAT= 2h
Uptime= 100% CO=52h Uptime=23 % CO= 28h CO= 34h Uptime= 32% Uptime= 20% CO= 48h
Uptime= 41% Uptime= 45% Uptime= 43% Uptime= 33%

52h 86h 28h 34h 44h 51h 36h

21h 88h 112h 51h 60h 65h 64h 73h

Figure 1: current state map of the spool removal process in TAM

As can be seen from the map (figure 1), the total lead time of this activity is 164
hours, which is calculated based on the start time and finish time of this activity. The
total cycle time is 534 hours (total cycle time = sum of cycle time of each stage). The
total value adding time is the sum of each process value adding time, and the value
adding ratio is 42% (Value adding time ratio= Total value adding time/ Total lead
time).
Future state map
Future state map is a result from process improvement. Lean tools are used to
streamline the value chain by identifying the wastes, analysing the root causes of
wastes and eliminating non-value adding activities. This ideal pull system in future
state usually represents the improvement we could achieve in practice.
CT= cycle time
CO= changeover time
VAT= value adding time Next stage
Last stage Site manager Uptime= CT-CO
CW= concurrent working

Removal elbow Removal hot gas

Remove insulation Releasing and Removal discharge Removal hot gas Removal transition spool
recycle(2)
measuring recycle(1)

Ending Modify scaffold

Start milestone spool Modify scaffold
removal Modify scaffold Modify scaffold
CT= 21h
CT= 36h Lift spool from compressor Modify scaffold
VAT= 21h Lift spool
CO= 0h VAT= 33h Lift spool Lift spool
CO=0h CT= 46h
Uptime= 100% CT= 24h
Uptime= 100% VAT= 2h CT= 31h CT= 16h
VAT= 2h
CO= 20h VAT= 1h VAT= 5h
CO= 9h
Uptime=57 % CO= 14h CO= 1h
Uptime= 38%
CW Uptime= 55% Uptime= 94%
Removal structural steel CW
work
Balance line removal

Lift steelwork
Lift spool
CT= 8h
CT= 5h
VAT= 2h
VAT= 1h
CO= 0h
CO= 1h
Uptime= 100%
Uptime= 80%

0 0 20 9 14

21h 36 46 24 31 16

Figure 2: future state map

The maintenance process in oil and gas industry is suffering the wastes because of the
uncertainty, which further causes the variability. Variability results in fluctuation of
the work flow, which is the primary cause of waste. After the reasons have been
recognised, lean tools are used to eliminate them in the highest possible and a future
state map be drawn up. There are mainly five guidelines concluded by Rother and
Shook (2003) for future improvement – TAKT time, continuous flow, supermarkets,
pacemaker process and pull system. However, as discussed by (Yu et al. 2009) in the
research paper (VSM application in house construction), continuous flow and
supermarket are non-applicable in the sit-based environment as well as complex long
process. This rule also could be adopted in TAM in oil and gas industry for the same

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feature of project-based management. Therefore, various proposals for waste

elimination have been developed in consultation with the actual work schedule. The
future state depicting the various modifications of maintenance is shown in figure 2.
Value stream re-detecting: Value stream is re-detected by picking out the key impact
jobs in each process to reduce the variation. By an analysis of this maintenance
activity, it is recognised that scaffolding modifications for facility lift are the key path
that decide the progress of the schedule. Therefore, current work state is adjusted with
pull work flow and redeveloped from the point of scaffolding work.
Takt time: Takt time is a metric to measure the rhythms of production from the
perspective of customer. In this case, the activity which is chosen to analyse value
stream is about compressor spool removal before strip down. Here takt time is
calculated according to the equation: The takt time = available working days/ 5 spools
need to be removal. As 162 hours are available for this activity, the takt time is 32.4
hours. It is apparently to see that cycle time in each process is higher than takt time
(figure 3). In order to meet this demand, concurrent working is introduced for process
improvement. The processes of removal elbow and removal structural steel, removal
transition spool and balance line removal are conducted with the same scaffolding
works. Figure 3 shows the comparisons of cycle time and takt time in current state
map and future state map. There is a clear indication of the improvements from this
statistics.
112h

88h

73h

65h 64h
60h

3
51h
46h
2

8 36h
6 7 31h
Take time Take time
5
32.4 h 32.4 h
4 24h
3,4
21h 21h
2 16h
8
6
1 1
5,7

Cycle time in current state map Cycle time in future state map

Figure 3: comparison of takt time and cycle time in current state map and future state map
Working plan
Working plan is an execution scheme deployed to meet the improvement targets based
on the analysis of the future state map. It is an important step to identify the resources
that are demanded to realise the benefit of VSM in real-world application. Rother and
Shook introduced value-stream plan to achieve future state (Rother and Shook 2003).
However, in manufacturing, few cases have ever discussed this step as the attributes
of this industry - linear continuous flow of production with limited procedures. So
lean staff can focus on improvements and inefficiencies be discovered by comparing
the benchmarking and the data collected on-time from work floor continuous
improvement. However, on the contrary, TAM in oil and gas industry is site-based
production and is finished in fixed time, so working plan, the transformation
procedure from current to future state, is required to allow lean tools be effectively
adopted into practice. Because this case have already finished, the data and

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information used for this case study cannot enable the conduction of working plan
analysis, this part will be done in next upcoming case.
DISCUSSIONS
As mentioned above, these results came from two schedules: baseline and finished.
The data is not enough to analyse all the waste and their reasons in this case.
Improvements are measured by comparing the lean metrics based on the limited data
(table 3). Total lead time of the value stream decreases from 164 hours to 121 hours,
amounting to a reduction of 43 hours. All the unnecessary wastes are removed by
reconstructing the work schedule. The total cycle time has a sharp drop from 535
hours to 174 hours. Therefore, it is concluded that VSM can be served as a guide and
has a potential to improve efficiency in TAM.
Table 3: comparison of lean metrics in current state map and future state map
Metrics Current state of map Future state of map
Total lead time (h) 164 121
Total cycle time (h) 535 174
Value adding ratio (%) 42% 55%

However, some challenges to use VSM in TAM should be observed. First, the seven
types of wastes are summarised based on the work in manufacturing shop floor, it
would be very difficult to cover the wastes in oil and gas industry. Second, unlike
manufacturing production line, the variation of process in TAM makes it difficult to
draw up the sequential value stream. Third, Kanban is the tool applied for visual
control to improve information management in standard VSM, while, there is a lack of
information flow management in TAM for the peculiarity in the preceding part, since
information flow is an important part in VSM, there should have a fundamental
change to operate a lean value stream (Yu et al. 2009). Another important challenge is
that most of the lean tools designed for future state map are hardly used in TAM
environment.
Therefore, it is felt that VSM is feasible for TAM efficiency improvement because of
its effective management strategy, but the full potential of VSM is hold back. The
suggestions for further research are organised into two groups. First, VSM is an
important tool of lean production, which is originated from manufacturing industry
and has been accepted in different area, a root cause analysis of low level of usage and
success in manufacturing and non-manufacturing must be done. It would be a guide to
the VSM effective actual practice. Another important further development to enhance
VSM would be to robust VSM with assistant tool, for example, building information
modelling (BIM). BIM is a demonstration of the entire construction lifecycle that
allow to redefine the work scope, and it has been widely used in engineering (Shou et
al. 2014). The integration of BIM and VSM is of great value for improving VSM with
a lifecycle perspective.
CONCLUSIONS
This research indicates that VSM is a process redesign tool that different from other
management method, it is feasible in TAM project to improve the efficiency by
identifying wastes in process and guiding value improvement. Some challenges and
refinement advices on working plan are provided to convert the technique into one of
the important tools for TAM management.

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ACKNOWLEDGEMENT
This research was undertaken with the benefit of a grant from Australian Research
Council Linkage Program (Grant No. LP130100451)
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