You’re overseeing the high profile, large capital project that gets installed during the plant’s upcoming outage. At the very same time, you’ve been busting your tail over the last nine months working umpteen hours a week planning this outage while also pushing production levels to build inventory.

On the first day of the outage, the construction foreman lets you know he can’t find a vast portion of the equipment that has been purchased. You investigate and find the following:

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  • One entire pallet of instrumentation and control valves is empty – Gone?
  • Another pallet only has an opened box of gaskets remaining –What?
  • The long lead time, safety critical pressure transmitter was
    installed on another Unit’s piece of equipment three weeks ago – Why?
  • And that specialized Inconel filter? The one that was the crux of
    the whole project? The one you’re sure the vendor said shipped early?
    It’s nowhere to be found. Relooking at the vendor’s email shows it
    would ship early if the invoice payment was expedited. You check
    with accounting. Payment did not occur since Filt-R-Us’ invoice did
    not conform to the company’s established GAAP based procedures and formatting. GAP?

There’s a gap alright: a gap in the production schedule, the outage schedule, and the capital spending budget. Your 10% contingency line item has been blown through seemingly at the speed of light. And that does not include the lost production costs. Or your time…that planned, pre-paid family vacation you were going to take after start up? It’s now become a Stay-cation.

Heavens to Murgatroyd!

What just happened; Where was the notification; Where’s the aspirin; What could have prevented this?

Ruskin’s Law may provide insight: It’s unwise to pay too much, but it’s worse to pay too little.

How does this apply? How can MAI help?

Stay tuned for Part 2

If you can’t wait, give us a shout at MAI@maitech.com  or 812.838.4000 and mention this article.