1 1

Global Refinery ManagersMeeting

Nobody Gets Hurt

100% Compliance

Everything Available

Lowest Sustainable

Cost

Best Yields with

Optimal Energy Input

2 2

Commitment to Business: Operational ExcellenceTHE PATH FORWARD

Re

lativ

e P

erf

orm

an

ce

Timing

'99 '00 '01 '02 '03 '04 '05

Location implementsstand-alone plan

Consistent PSI Practices

Base line performance

PSI w consistent structure& Organizations

- Union Alignment- New Relationship

2003 Business Plan

3 3

Operational Excellence

Requirements

Processes

Jobs & Tools

Organization

What

How

Who

Nobody Gets Hurt

100% Compliance

Everything Available

Lowest Sustainable

Cost

Best Yields with

Optimal Energy Input

4 4

RMS Relationship to SOP US / Motiva Refining Work Process Model

* Inherent in all Refinery Management Systems

1.0 Lead Business

1.1 Set DirectionDevelop Vision

& Values

1.2 Execute Direction

1.3 ManageExternal

Relationships

1.4 CreateConditions for

Learning

1.5 DevelopNew Business

2.0 Manage HydrocarbonRaw Material

3.0 PlanProduction

6.0 Make Products

7.0 DeliverProducts

2.1 Select & Schedule Crude & Other Feed Stocks

2.2 Receive RawMaterials

2.3 Manage Multi-Site Raw Materials

& Intermediates

2.4 Manage Raw Material Inventory

3.1 Prepare optimalShort-term plan

3.2 Deliver &Communicate theShort-Term plan

3.3 AssessPerformance toPlan & adjust3.4 Acquire &

Determine MarketSpecs for Products

3.5 MaintainOperations Planning

Effectiveness

6.1 Ensure Safe Production (ESP)

6.2 Manage Hydrocarbon

Production to Plan

6.5 Optimize Non-Energy

Consumables

6.4 OptimizeUtilities/Energy

6.3 Manage Non-HydrocarbonProduction

7.1 Load Product

7.2 Ship Product

7.3 Transfer Custody of

Finished Product

7.4 ManageFinished Product

Inventories

7.6 DetermineDelivery

Requirements

7.5 ManageIntermediate &

Blend StockInventories

5.0 Add NewAsset

Capability

4.0 ProvideAsset

Availability

4.1 Ensure Asset Availability

4.2 Perform Reliability &

Maintenance Process(RAMP)

4.3 PerformTurnaround Process

4.4 Provide Equipment

Technical Assurance4.5 Provide

InfrastructureAssurance

5.1 ManageCapital Projects

5.2 Manage Non-Capital

Improvements5.3 AcquireAdditionalCapacity

8.1 Provide & Develop People Resources

8.3 Provide Procedures8.3.1 Provide Operating

Procedures

8.15 Manage ProcessHazard Analysis

8.9 ProvideEnvironmental

Performance System

8.3 Provide Procedures

8.8 Provide Health & Safety

Performance System

8.10 ManageCompliance

Assurance *

8.1 Provide &Develop People

Resources

8.5 ManageFinancial

Resources

8.2 Provide Employee

Training

8.3.1 Provide OperatingProcedures

8.4 ManageInformationTechnology

8.6 Provide Purchase to

Pay Services

8.12 Management

Of Change *

8.7 ManageLegal Action

8.11 Perform

Investigations *8.13 Maintain &

Develop EquipmentStandards & Specs

8.14 Perform

Quality Assurance *

8.0 Provide Enabling Services

RLT-MS

HSE-MS

HydrocarbonMS

Asset MS

AdminMS

RMS“File Cabinet”

5 5

1.0 Lead Business

1.1 Set DirectionDevelop Vision

& Values

1.2 Execute Direction

1.3 ManageExternal

Relationships

1.4 CreateConditions for

Learning

1.5 DevelopNew Business

2.0 Manage HydrocarbonRaw Material

3.0 PlanProduction

6.0 Make Products

7.0 DeliverProducts

2.1 Select & Schedule Crude & Other Feed Stocks

2.2 Receive RawMaterials

2.3 Manage Multi-Site Raw Materials& Intermediates

2.4 Manage Raw Material Inventory

3.1 Prepare optimalShort-term plan

3.2 Deliver &Communicate theShort-Term plan

3.3 AssessPerformance toPlan & adjust3.4 Acquire &

Determine MarketSpecs for Products

3.5 MaintainOperations Planning

Effectiveness

6.1 Ensure Safe Production (ESP)

6.2 Manage Hydrocarbon

Production to Plan

6.5 Optimize Non-Energy

Consumables

6.4 OptimizeUtilities/Energy

6.3 Manage Non-HydrocarbonProduction

7.1 Load Product

7.2 Ship Product

7.3 Transfer Custody of

Finished Product

7.4 ManageFinished Product

Inventories

7.6 DetermineDelivery

Requirements

7.5 ManageIntermediate &Blend StockInventories

5.0 Add NewAsset

Capability

4.0 ProvideAsset

Availability

4.1 Ensure Asset Availability

4.2 Perform Reliability &

Maintenance Process(RAMP)

4.3 PerformTurnaround Process

4.4 Provide Equipment

Technical Assurance4.5 Provide

InfrastructureAssurance

5.1 ManageCapital Projects

5.2 Manage Non-Capital

Improvements5.3 AcquireAdditionalCapacity

8.1 Provide & Develop People Resources

8.3 Provide Procedures8.3.1 Provide Operating

Procedures

8.15 Manage ProcessHazard Analysis

8.9 ProvideEnvironmental

Performance System

8.3 Provide Procedures

8.8 Provide Health & Safety

Performance System

8.10 ManageCompliance

Assurance *

8.1 Provide &Develop People

Resources

8.5 ManageFinancial

Resources

8.2 Provide Employee Training

8.3.1 Provide OperatingProcedures

8.4 ManageInformationTechnology

8.6 Provide Purchase to

Pay Services

8.12 Management

Of Change *

8.7 ManageLegal Action

8.11 Perform

Investigations *8.13 Maintain &

Develop EquipmentStandards & Specs

8.14 Perform

Quality Assurance *

8.0 Provide Enabling Services

RLT-MS

HSE-MS

HydrocarbonMS

Asset MS

AdminMS

R M S“F ile C abinet”

Console Positions:

•Specialized refining process experts

• Systems view

•Advanced training

•Group has say in selection

•Ability & interest

•Pay to recognize learning & skills

Reliability / PM Positions:

• RCM – specialized equipment PM tasks

• Reliability tasks

• Performance Monitoring/ Troubleshooting

• RCM exception elimination

• Bad Actor elimination

• Equipment historian

• Data analysis

Field Op Positions:• RCM – Surveillance & Op / PM tasks• Data capture / analysis• Field line ups & samples• Chemical management• Equipment start up / shut down• Maintenance Prioritization / Prep

6 6

RoF – Maintenance Impact Analysis

High

Fre

quency

Low

Low High

Reliability Impact

Low/MedVoltage

ComprSpec

FieldInst

ReliabSpec

DCSSystems

Lead BM/PF Roles

Pump Mechanic

PRVMaint

Inspectors

EquipmtOperators

Machining

SHOP FABAlloy Welding High Voltage

Line CrewsCompressorOverhauls

BM/ PF

General Welding

Soft Trades

Fugem

ConsoleOp

FieldOp

LabSupport

Coke Handling

RailroadOps

7 7

Routes of progressionESP

LeadershipRCM

LeadershipOMC

LeadershipPlanning

LeadershipCraft

Leadership

PAY

Console 2

Console 1LeadField

FieldSupport

LeadPM

PMCraft

TraditionalStaff duties

RepairCraft

New Hire New Hire

Qualifications & Time Apprenticeship

As req’d

* SelectionProcess

SenioritySeniority * Selection

Process

TraditionalStaff duties

* SelectionProcess

* Selection Process to be based on skills, seniority or combination

8 8

Jargon Buster

• The Rings > 5 things we have to do well!!• RMS > Refinery Management System• WPM > Work Process Management = DBAM• PSI > Process Safety Initiatives• ROF > Refinery of the Future• PM > Proactive or Preventive Maintenance• SME > Subject Matter Experts• RMT > Refinery Management Team• RCM > Reliability Centered Maintenance• ESP > Ensure Safe Production