PIPELINE - October 2014 Issue

October 2014 Issue

Eden Prairie, MN

CHERNE CONTRACTING CORPORATION

INSIDE THIS ISSUE

T he team at PCS Lima is about to enter a turnaround. For those of us that have had the pleasure of taking part in one, we can appre- ciate what that means. Others in our company are probably wondering what the big deal is. Maybe understanding what a turnaround is will give you a better feel for what the Lima team will be going through in Letter from the Area Manager: PCS Lima Turnaround

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WALKING FOR WEAVER

the next five weeks. Turnarounds can be called different things – Outages, Maintenance Periods, TAR’s. No matter what term is used, the definition is pretty similar. A turnaround is a period when an operating unit is taken offline and made safe for crews to perform work on the equipment in that unit. It is im- portant to understand that during this period no product is being made and therefore the profits generated by that product are unavailable to the owner. This is a huge driver for the owner and there is great emphasis placed on keeping the unit offline for the shortest time period needed to perform the scheduled work. In many of the facilities Cherne has worked in, the cost of a day of non-production can reach as high as $1,000,000. With that kind of money on the line, schedule becomes the ultimate driver in how the work is executed. Taking a unit offline also requires an owner to make sure his feed supplies and product sales take into account the timing and duration of any planned outage that would affect these items. So changes to the start and end date are very difficult to accept and it is not unusual for the dates and durations to be set more than a year ahead of time. Most operating units are designed for a typical run time where no maintenance is required beyond the day to day operations. At some regular interval the unit must be maintained and these are the time periods that are called turnarounds. Regularly scheduled items, like catalyst replacement and exchanger bundle cleaning, happen during turnarounds. It is also the opportunity to work on in- line items like valves and instruments that have reached a point where they need to be serviced or replaced. Turnarounds also give the owner the opportunity to make changes to the mechanical systems that are required to meet updated standards or optimize the unit to increase production rates. Most turnarounds are a combination of these items and require substantial planning and scheduling efforts to make sure all the work can get done in the allotted time frame. At the PCS Lima project, the team will be involved in maintenance items like bundle cleaning and catalyst replacement. There are also about 400 maintenance packages dealing with items that need to be replaced or serviced. The turnaround work will also involve new construction and modifications to existing plant equipment that will enhance the output of the unit. More than 200,000 manhours will be spent in the next five weeks. That is the equivalent of working more than 100 workers an entire year. The craft manpower is expected to peak at around 900 men. Cherne will have about 100 staff in Lima to work the turnaround. This will include regular Cher- ne field staff, some Cherne District Office staff, staff from our Joint Venture partnering districts (Eastern and Kiewit Power Constructors), some help from Kiewit Energy Canada, and local and temporary hires from the Lima area. The work schedule is two shifts working six days a week. The long hours and tight schedules can make for some very stressful situations and the team will need support from all facets of the company. Working a schedule like this also adds to the com- plexity of making sure that our safety and quality standards are being met. The sign of a successful turnaround is when an owner is able to bring his unit back online and begin production again. Without our team working hard and getting the work done in a safe and professional manner, the owner would not be able to do this. And even though they may be tired, the Cherne team will have smiles on their faces when they learn that the unit is back online. They will know all of their efforts were worth it and there is a lot of pride and satisfaction that come with that. ■ — Chuck Noble, Area Manager

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FEATURED EMPLOYEE Guess who is a fantastic water skier! CHEROKEE PROJECT UPDATE Find out what the buzz is all about at the project SCATTERGOOD PROJECT UPDATE The project’s big push is to get out of the ground in power blocks PCS LIMA PROJECT UPDATE The team prepares for the project turnaround ALISO CANYON PROJECT UPDATE Do you know how many procurement packages are in negotiations? TESORO AVON WHARF PROJECT A snapshot of what the mile- long wharf and new shipping berth project will entail

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LSP UPDATE Welcome our newest member! KIEWIT ONLINE STORE Now you can customize online apparel with the Cherne logo!

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1 HEALTH & WELLNESS Discover four ways you can stay healthy this fall SAFETY Join in the challenge honor- ing America Recycles Day PIPELINE CHALLENGE Why I Work Safe TRANSFERS & NEW HIRES Welcome to the Cherne District! IMPORTANT DATES Mark these dates on your calendar

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Cherne District KIECORE Purchase System P. 6

OPPORTUNITIES In the Queue P. 10

QUALITY CONTROL Subcontractor Quality Management P. 11

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