bridging the gap
DESCRIPTION
Doug Machon presentation at the 2011 International Biorefining ConferenceTRANSCRIPT
I n t e r n a t i o n a l B i o r e fi n i n g C o n f e r e n c e
Strategies To Address The High Costs of
Operations & Maintenance
Douglas Machon, Sr. Manager
NAES Corporation
A g e n d a
A B O U T N A E S
O & M S CO P E
O & M B E S T P R AC T I C E S
S T RU C T U R I N GO & M
D o m e s ti c O ffi c e sB u s i n e s s S e g m e n t s
B i o - M a r k e t s V i s i o nS t r a t e g i c D i r e c ti o n
A B O U T N A E S
E x p e r i e n c e B a s eA c ti v e P o r tf o l i o
N A E S O & MG e o g r a p h i e s
A B O U T N A E S
A g e n d a
A B O U T N A E S
O & M S CO P E
O & M B E S T P R AC T I C E S
S T RU C T U R I N GO & M
C o n c e p t
O & M S C O P E
I n c l u d e d
• Complete operational responsibility
• Routine, day-to-day maintenance
• Contractor Oversight
O&M
Plant Systems
Feedstock Receiving Production
C o s t - E ff e c t i v e C o n v e r s i o n o f F e e d s t o c k t o C o m m e r c i a l P r o d u c t s
C o n s u l ti n g P e r i o d( C R E A T E )
P r o F o r m a I n p u t s
B u d g e t D e v e l o p m e n t
S u p p o r t N e g o ti a ti o n s
R e v i e w P l a n s
P r e - C o m m e r c i a l O p e r a ti o n s
( G E T R E A D Y )
R e c r u i t / H i r e S t a ff
D e v e l o p P r o g r a m s
P u r c h a s e S p a r e s
S u p p o r t E P C S & C
C o m m e r c i a l O p e r a ti o n s( E X E C U T E )
S a f e
C o m p l i a n t
C o s t - E ff e c ti v e
H i g h P e r f o r m i n g
P r o j e c t P e r i o d s
O & M S C O P E
M e a s u r e m e n t
O & M S C O P E
H o l i s t i c : D e l i v e r V a l u e i n A l l A r e a s
A g e n d a
A B O U T N A E S
O & M S CO P E
O & M B E S T P R AC T I C E S
S T RU C T U R I N GO & M
P h i l o s o p h y
O & M B E S T P R A C T I C E S
Establish O&M “Principles” & Management
Processes
Develop & Maintain Strong O&M-Focused
Infrastructure
Develop, Implement, Execute, and Improve Disciplined & Effective
Programs
Continually Measure, Assess, and Improve
F o c u s o n t h e F u n d a m e n t a l s
P r o g r a m sO b j e c ti v e s
C o n ti n u o u s I m p r o v e m e n tP r o c e s s e s
O & M B E S T P R A C T I C E S
Participation in industry activities/conferences Leadership of technology users groups Sharing of Lessons Learned and Best Practices Plant and fleet assessment programs Access to plant/technology database Preferred vendor lists Group pricing agreements / purchasing power Always drive value; Always get better
B a n k a b l e P r o j e c t s
O & M B E S T P R A C T I C E S
Risks
Experience
Feedstock
Off-Take
ProductEPC
Technology
Operations
A g e n d a
A B O U TN A E S
O & M S CO P E
O & M B E S T P R AC T I C E S
S T RU C T U R I N GO & M
O w n e r / O p e r a t o r A l i g n m e n tD e c i s i o n P o i n t s
S T R U C T U R I N G O & M
Cost vs. production (see below)
Fixed price vs. cost transparency
Typical scope vs. customization
Plant objectives vs. alignment of incentives
Roles of owner/operator in budget development
Roles of owner/operator in operating plan
IDENTIFY WHAT’S MOST IMPORTANT: Validating first-of-its-kind technology?
No frills people and process management?
Turning around an underperforming asset?
Plant as a training ground for future plants?
Operations experience to achieve financing?
Strategic partnership to extend w/licensing?
Need to gradually develop O&M capability?
STRUCTURE O&M TO THOSE NEEDS:
C o s t V s . P r o d u c ti o n