Hydrocarbon Processing - November 2022 - 50B

Maintenance and Reliability
* Step 1: Identify obsolescence and proactively implement
risk mitigation strategies to improve reliability. The
identification of potentially obsolete equipment
should be carried out through various tools such as a
root cause analysis report, a recurring failure report, a
report on the plant's mechanical integrity, a corrosion
and inspection report, and various safety audit reports
published as a part of internal management's practice
for a manufacturing unit. These reports will expose
the obsolete production equipment, as well as those
underperforming because of a lack of OEM support.
Even a substantial increase in equipment maintenance
cost will be brought under the scope as spares and service
contracts for obsolete equipment become high.
* Step 2: The engineering team must assess the extent and
scope for all potential obsolete equipment as identified
in Step 1. It may be the entire piece of equipment or a
component of the equipment that becomes obsolete.
The most common partial obsolescence cases are
the components of a system where the sub-supplied
items become obsolete more quickly than the original
equipment, which may still be in the production phase.
* Step 3: In the case of partial obsolescence, a technical
discussion must be conducted with alternative suppliers
who can provide the same obsolete components
compatible with the original equipment. This may
provide assurance for the continued functioning of the
equipment without any stoppage due to obsolescence.
For example, the third-party interfacing unit or the
human-machine interface unit of a process control
system can be developed for outsourcing from alternative
vendors in case of obsolescence. This may prevent the
revamp of the control system.
* Step 4: The lifecycle strategy must be worked out for all
identified critical obsolete equipment so that a 5-yr plan
for equipment upgrades may be developed. The following
data must be collected before developing an equipment
lifecycle plan:
° Equipment criticality (HSE/production)
° Equipment installation base
° Time of obsolescence declared by OEM
° Extent of spares/service support available by OEM
for obsolete equipment and the time frame till
the OEM continues support
° Available spares
° Rate of consumption of spares
° Failure rate of the equipment.
* Step 5: Assess the expected obsolescence phase based
on the lifecycle strategy. Decide on whether a complete
or partial upgrade will be executed and identify the
proposed phasing of the upgrade. A product might be
declared obsolete by the OEM, but the end user may opt
for a staggered action plan depending on the respective
phase of obsolescence. The obsolescence phase is
determined based on the lifecycle plan of the equipment.
* Step 6: Work out the mitigation plan for the impact
created due to no available alternatives. In that case,
the process design might need to be changed to
accommodate the absence of alternatives until the
50B NOVEMBER 2022 | HydrocarbonProcessing.com
revamp/upgrade of the system is implemented.
* Step 7: Conduct the cost-benefit analysis of spares/
service support and decide whether to stock up on
spares/service support or look for an immediate upgrade.
* Step 8: Have a technical discussion with the OEM to
evaluate alternatives with assorted options for required
changes/upgrades. The upgrades may contain enhanced
features that enable the equipment to function more
efficiently, and the enhanced features are to be weighed
while evaluating the main equipment function.
* Step 9: Conduct a techno-commercial assessment and
negotiate with suppliers to evaluate various upgrade options.
* Step 10: Decide whether a complete or a partial
upgrade will be executed and identify the proposed
phasing of the upgrade.
* Step 11: Define the specification sheet for the
new equipment.
* Step 12: Develop preliminary upgradation budget
requirements based on the identified obsolete equipment
and evaluate alternatives.
* Step 13: Compare the preliminary budgetary
requirements with guidelines from the annual planning
process (in terms of allocation) and evaluate overall
maintenance/shutdown schedules to determine schedules.
* Step 14: Prioritize budgetary requirements and define
the upgradation timeline for each obsolete equipment.
In case of deferral, work out additional alternative
strategies for obsolete pieces of equipment.
* Step 15: Obtain management approval for the
upgradation budget.
* Step 16: The progress and efficacy of the obsolescence
management program must be monitored periodically.
The following suggested key performance index can
be followed:
° The frequency of production outages or HSE
incidences due to obsolete equipment
° The ratio of obsolete inventory and total inventory
° The ratio of equipment covered under the obsolescence
management program and the equipment in which
potential obsolescence is identified
° The amount of equipment with an obsolescence plan.
Obsolescence phases. The phases of obsolescence include
the following:
* Phase 1: Upgradation within 1 yr
* Phase 2: Upgradation within 2 yr
* Phase 3: Upgradation within 3 yr
* Phase 4: Upgradation within 5 yr.
The process for obsolescence management may be adopted
in different versions. However, before obsolescence issues become
a critical problem, forcing emergency decisions, obsolescence
must be addressed at an appropriate time to develop a
mitigation plan accordingly.
RANJAN BHATTACHARYA has more than 35 yr of experience
in the hydrocarbon industry as a Lead Instrumentation
Engineer. Bhattacharya has worked with major hydrocarbon
manufacturers like Reliance Industries Ltd. and Haldia
Petrochemicals Ltd. His experience is spread over maintenance,
project engineering and training.
https://www.HydrocarbonProcessing.com
Hydrocarbon Processing - November 2022

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