General Maintenance Services at Melchorita Plant

Peru LNG Project

General Maintenance Strategy- Integrated Maintenace System

1. INTRODUCTION

SKANSKA, has developed a distinctive integrated maintenance system (IMS),

supported by ISO 9001, BS 8800, ISO 14001 and SA8000 Standards (quality, safety,
environmental care and social responsibility), aimed at concentrating efforts in its “core
business" in response to satisfy the industry operators needs related to Mining, Oil &
Gas, Energy & Infrastructure,.

The Integrated Maintenance System (IMS), aims to teamwork between the customer
and the maintenance service, to optimize the reliability, productivity, safety and
security, environmental care, continuous improvement and operating costs
optimization of equipment, focusing its efforts on failures early diagnosis and planning.

The system is based on procedures available in our library and supported in its
operation with our integrated management manual.

The jobs performed by Skanska's staff, are supported by procedure instructional

developed as part of our Integrated Management System.

The staff proposed for this service, together with the support areas and the expertise
to incorporate in the rendering of services is able to take on the responsibilities
proposed by Peru LNG for the LNG Plant maintenance.

2. SERVICE STRATEGY

The Maintenance System proposed for this service is based on working in conjunction
with Peru LNG maintenance staff, with the participation of supervisors and leaders of
Skanska's specialized areas.
Among the roles assigned to this working group we consider to perform the following
maintenance activities:

• Planning, scheduling and monitoring the execution

of maintenance. (Peru LNG - Skanska)

• Systematic maintenance statistics analysis.(Peru

LNG – Skanska)

• Development of Action Plans. (Peru LNG May –

Skanska)

• Development of work improvements of highly

complex problems. (Perú LNG – Skanska)

• Preparation of monthly management reports (Peru

LNG – Skanska)

• Preparation of management indicators. (Peru PLG

– Skanska)

The joint working group described above with the maintenance staff, includes, in
addition, the execution of the following activities:

• Support to operation groups.

• Preparation and/or review of procedure

Instructional regarding their specialty.

• Failure Analysis: Searching and elimination of

failure cause. (Peru LNG - Skanska)

• Execution of preventive maintenance, which

includes the necessary actions to comply with the maintenance plans required
(periodic, checks, controls, measurements, tests, adjustments, calibrations,
lubrication and regular cleaning, etc.).

• Execution of corrective maintenance work, including the actions required to

recover equipment design conditions and facilities according to the needs
identified in the operation.

• Execution of corrective maintenance work, including the actions required to

recover the conditions for the design of equipment and facilities according to the
needs identified in the operation.
• Execution of emergency work resulting from installations failures with available
human resources and equipment of Skanska, proposed in this service.

The main objective of this service is to maximize the availability of the assets involved,
looking for the optimum use of resources for maintenance, according to the needs
described in this statement having as a reference the World Class Maintenance.

Our strategy proposes the use of IMS (Integrated Maintenance System), and
Management Maintenance Integrated Model based on current and modern assets
management. This model has been developed by Skanska in response to the need for
operators in the industry of mining, hydrocarbons, and power generation to adopt the
Outsourcing in maintenance management and thus focus the production in its core
business.
The implementation of IMS involves the incorporation of maintenance operational
practices coordinated and oriented to seek the optimal cost as the balance between
risk decisions and performance within a cycle of continuous improvement re-fed by
field data analysis, Maintenance Software of Peru LNG (SAP PM module) as a main
tool that allows reviewing regularly the planning, scheduling and performing of
intervention routines by Peru with LNG unanimously.

Fig. 1 – Implementing Stages

The IMS implementation seeks to optimize resources through a review of maintenance

plans from the correct identification of the facility needs in a process of assessment
and diagnosis at the start of the service. Then control mechanisms will be set up and
defined in a second phase, incorporating assets reliability analysis and further defining
the optimization processes by managing maintenance management indicators.
 Fig. 1 – IMS Implementation process

Each of the stages of our management system is supported by procedures. Below is

the flow chart of the system with the associated procedures.
 Identification of
Equipment; Systems
and Subsystems
Division
SK.IGM.13

State and Condition Initial Survey

Survey predictive
SK.IGM.17 SK.IGM.15
SK.IGM.18 SK.IGM.25
SK.IGM.24 SK.IGM.26

Maintenance
collection and
Technical Information
SK.OyM.01
SK.OyM.02

Criticality Defining
Equipments
SK.IGM.03

Planning and
programming.
SK. IGM.07
SK. IGM.08
SK. IGM.09
SK. IGM.10
SK. IGM.11

Preliminary
Determining Critical
Plan of Lubrication Preventive
Stock of spare parts.
SK.IGM.16 Maintenance Plan.
SK.IGM.20
SK.IGM.14

Basic condition of
equipment Analysis
SK.IGM.06

Management
Assessment
SK.IGM.22

Systematic Predictive Maintenance Operator Inspection

Preventative Plan or Conditions. and maintenance
Maintenance Plan. SK.IGM.15 technicians.
SK.IGM.14 SK.IGM.25 SK.IGM.21
SK.IGM.26

Failure analysis
History - Orders for SK.IGM.01
Labour. SK.IGM.02
SK.IGM.13 SK.IGM.05
SK.IGM.12

Indicators Monthly
Procedures and
Report Training plan
instructions
SK.IGM.19 SK.RH.01
SK.CSMA.01
SK.OyM.08

Maintenance Manual
Analysis
SK.IGM.23
 3. GENERAL PHASES FOR IMPLEMENTING IMS

This performance and results proven system, according to international standards and
SKANSKA's application, generates reliability and control of equipment in the shortest
time, which must maintain the productive and functional capacity, while preserving the
capital invested, evaluating the economic impact generated per unit and allowing the
right decisions based on technical economic analysis.

The aim of the process is to establish and implement an orderly sequence of jobss, in
order to achieve adequate reliability of the facilities to operate and maintain, as well as
having knowledge of the equipment condition, hence it allows us to take actions and
inform our Customer Peru LNG.

Implementation of the Equipment Reliability Plan is based on maintaining the basic

operating condition of said equipment to keep it in optimal operating conditions at
minimal cost and least interventions.

3.1. PHASE 1:
It includes the following processes:
• Equipment Identification by operation (SAE 1011, ISO 14 224).
• Assessment of the equipment condition.
• Compilation of records.
• Determination of criticality (API 580).
• Basic Preventive Maintenance Plan (SAE 1739, ISO 14 224).
• Lubrication Program (ISO / TC 108/SC N 153).
• Inhibition book and permissive security systems.
• Initial evaluation of predictive (vibration, electrical, oil)
• Planning and scheduling.
 • Spare parts: critical spares, stock, place for orders.
• Basic Condition of equipment (PAS 55 performance levels permitted).

PROCESS DEVELOPMENT PHASE 1

ƒ Identification of Equipment:
We understand this function is not within the scope of this service. However, being a
new facility, our working methodology is at disposition of PERU LNG. If this is agreed,
we are prepared to accompany PERU LNG in the application of this methodology.

A list of equipment should be prepared. It shall be divided according to its

FUNCTIONS definitions and shall be separated into SYSTEMS and SUB-SYSTEMS.
This is the list of equipment upon which we will work in the development and
implementation of the maintenance and programming plans.

In the procedure SK.IGM.13 -“Integrated Data Base”, the methodology to be used is

detailed which is based on SAE 1011 - ISO 14224 standards to create a data base,
compatible to any computerized system (CMMS), helping the client in case the system
required to be completed.

How to Proceed: Definitions of fields for maintenance system data base SK.IGM.13-
Integrated Data Base.

Summary of procedure scope:

• Equipment list preparation.

• Division of Unites and Sub-Units.
• Identification of equipment in the field.
• Equipment registration in the maintenance system.

ƒ Evaluation of state and condition:

We understand this function is not within the scope of this service. However, being a
new facility, our working methodology is at disposition of PERU LNG. If this is agreed,
we are prepared to accompany PERU LNG in the application of this methodology.
It is the evaluation process of the state and condition that each piece of equipment
presents; describing in detail the main findings and incorporating to CMMS the
corresponding reports including observation and detected details.

The main criterion in this process is to provide an immediate intervention plan, when
necessary, report Peru LNG the necessary actions in relation to the main problems
that critical equipment could have.

This step has an impact on the strategy defined for spares management through time
and as reliability objectives are achieved.

How to proceed: Evaluation of the state and condition of equipments and facilities
SK.IGM.17 - “State and Condition”.

Summary of procedure scope:

• Visual evaluation of all the equipment to be maintained.
• Verbal evaluation with operators and specialists about the state of equipments and
their specific failure.
• Pending maintenance.
• Act of initial reception of facilities and equipment.
• Material evaluation without specification.
• All pendings and abnormalities will be registered in the survey when the service
was taken.

ƒ History collection:
We understand this function is not within the scope of this service. However, being a
new facility, our working methodology is at disposition of PERU LNG. If this is agreed,
we are prepared to accompany PERU LNG in the application of this methodology.

The aim is obtaining the most possible information to add to initial evaluation and thus
completing, the data sheet of basic information for Maintenance Engineering.

The criterion at this stage is to obtain as much information as possible from the
manufactures, constructors and assembly operators to add to the initial survey the
equipment state and condition. Manuals of operation, maintenance and lists of spares
as well as plans and technical specifications of equipment, sub-systems and systems,
should be given by the Client, which once received by SKANSKA, the complete
technical record will be organized, prepared and ready to be used.

How to proceed: Compiling and up-dating technical information of IMS, SK.O y M.01
– Technical Information.

Summary of procedure scope:

• Equipment maintenance records.

• Equipment maintenande plans.
• Work Orders and Routines.
• Failure Records.
• Identification of most problematic equipment and usual breakings.
• Equipment running policies
• Current spares and oil stocks
• Stock values of minimum and previously defined critical spares.
• Lists of most consumed spares.

ƒ Criticity determination:

We understand this jobss is not within the scope of this service. Likewise, being a new
installation, our working methodology is at PERU LNG disposal. In case you accept,
we are willing to accompany PERU LNG to use our methodology.

Criticity determination of equipment is based on the evaluation of four basic factors

related to equipment functions:

• Quality.
• Security.
• Environment.
• Costs.
According to the procedure, we have to evaluate the impact of a failure and then the
probability of occurrence. With both parameters, and using a matrix we determine the
Risk using the following formula:

Risk = Probability of occurrence x Consequence.

The Criticity is oriented to the decision taking of resources assigned to the critical
spares and the Priority of planning the maintenance works in relation to the
accomplishment of contractual goals.

How to proceed: Definition of equipment criticity SK.IGM.03-“Equipment Criticity”.

ƒ Basic Preventive Maintenance Plan:

During the six first months of service, Skanska will participate in the elaboration of
preventive maintenance plans with their team of specialists and that of Peru LNG.
Skanska explains the elaboration of maintenance plans from SK.IGM.14 procedure in
his own maintenance management system.
For this particular procedure, we include a very detailed description because we think
this is a fundamental part for the start of the service.
At the start of every Maintenance Service, it is very useful begin with a plan which
includes all the typical failure modes, maximizing the equipment use. This plan covers
extensively all failure modes so it will adjust and optimize depending to the results.

The Maintenance Plan is the main preventing process on the asset management to
manage and administrate the potential failures or early detection of incipient or
degradation failures, aiming to eliminate or mitigate failure consequences.

Application of Reliability criteria

We define maintenance jobs over equipment components as the actions which

decrease the probability of failure.

We define the reliability coefficient as the coefficient between interventions (actions

over the equipment) where the probability of failure will be accepted.
To accomplish the Preventive Maintenance plan, the equipments and their division into
units and sub-units should be previously listed according to SK.IGM.13 Procedure-
Equipment List or with the criterion PERU LNG designates, list the equipment
PL.SK.IGM.13-02 - Equipment List, and then we propose to define the criticity of them,
depending on SK.IGM.03 Procedure – Modified Equipment Criticity according to the
evaluation criteria agreed with PERU LNG.

We will start with equipment of criticity 1. First, the survey is performed according to
the procedure SK.IGM.17- State and Condition. And define the Basic Condition state
of the equipment in agreement with PERU LNG SK.IGM.06 – Rev. 1 Basic Condition
of equipment. According to procedure, this will permit on one hand to determine the
equipment that should be repaired to take them to that condition, and on the other
define the reference point to evaluate its reliability state during maintenance period. In
all cases, the basic condition must consider as minimum the functioning of the
protection systems those with which has been designed by the manufacturer. SK IGM
.18 - Rev.1 – Protection Tests. The Preventive Maintenance Equipment Plan which is
warranted, will adjust of what it is strictly established by the manufacturer.

Type of maintenance jobs.

Conditional Jobs: Are those Jos related to running equipment in which a symptom is
monitored, in order to predict a future potential failure.

Cyclical Reconditioning Jobs: It is referred to the repair of an equipment component

restoring its initial performance.

Cyclical Substitution Jobs: a preventive change of an equipment component for a new

one restores its initial performance.

Cyclical Inspection Jobs: the realization of preventive monitoring of state and condition
of parameters or components, with fixed coefficients. As a result of the monitoring, it
would be necessary an intervention to restore the equipment to its initial performance.

Functional Test Jobs: realizing preventing tests of the equipment functions with fixed
coefficients, or take it to its maximum condition of design, with the object to evidence
incipient hidden failures or functional failures. This criterion is very important for stand
by equipment and also for the systems which act depending on certain condition as
equipment breakdown, permissive, emergency signaling, fire net. As in the same
previous case, it would be necessary an intervention to restore the equipment to its
initial performance.
Default Jobs: They may be two:
• No acomplish preventive maintenance (go to the break).
• Redesign the equipment to avoid the failure.
•
Preliminary preventive maintenance plan:

The Preventive Maintenance plan is made having into consideration the following
information which must be compiled as start point:

• Staff experience.
• The planning agreed with PERU LNG.
• Manufacturer’s recommendations.
• Evaluation of environmental conditions and operative context.
• Previous maintenance plans about similar equipment.
• Interviews to operators and maintainers to evaluate operation conditions and to
detect more frequent anomalies and failures.
• Historical Failures and breakdown of similar equipment.
• Existing legal requirements.
• Winter/Summer jobs.

Preparation Process of the Preliminary maintenance.

The preventive maintenance plan includes all the actions coming from the procedures:

• SK.IGM.18-Functional Test of protections.

• SK.IGM.16- Program of Lubrication.

• SK.IGM.15-Predictive Maintenance.

• SK.IGM.24- Statics Equipment Monitoring.

• SK.IGM.25- Predictive maintenance on electrical equipment.

• SK.IGM.26- Predictive maintenance on rotating equipment.

The method to be employed is FMEA directly to the components with potential

probability of failure and predisposed to any maintenance jobs that eliminates or
decreases the consequences of every component failure.

The functional losses must be evaluated from the total or partial failure of components.

As a guide, ISO 14224 Standard is used to define the division on subsystems of the
different classes/types of equipment, according to hierarchical architecture.

A group is formed with a maintenance technician of every specialty and an area

operator.

Every component which can provoke a potential failure is identified in the equipment
(sub-unit), a predetermined jobs is verified and if a component which is not listed is
identified, it is added and a preventive jobs is defined.

The jobs will be selected from the simplest (inspections) to the most complex ones
(periodical changes).

Verification will be made to know if historical information exists in order to verify

components with failures in similar equipment. It is also important the operative
personal experience.

As a general rule, invasive maintenance or inspections are avoided.

In the maintenance plan a criteria will be established for stand by equipment, and for
startup routine.

Launching of Preliminary Systematic Preventive Plan.

• All the elements of system protection must be controlled, reviewed

and tested before starting the Preliminary Preventive Plan, with SK.IGM.18-Functional
Test of protections.

• Lubrication should be included in the critical jobs which will be

incorporated to the Plan. For lubricant specification, the SK.IGM.16 Procedure –
Lubrication Program should be applied.

• On SK.IGM.15 Procedure-Predictive Maintenance, there are the

criteria for selecting the technique and initial period.
Once the Basic Condition of the equipment is restored, or defined its new state
according to SK.IGM.O6 Procedure-Basic Condition of Equipment in agreement with
PERU LNG, or when warranty period has expired, a review of the Preventive
Maintenance Plan applying FMEA as it is explained in the rule SAE J1739 (Potential
Failure Mode and Effects Analysis for Machinery) will be done. The sequence for
reviewing the maintenance plans starts from the history record of the equipment, and
from the identification of the components that has failed partial or totally.

The intervention frequencies that should be applied at first must be conservative, and
the same will be extended according to the performance of equipment and evaluation
from maintenance, depending on the analysis carried out through SK.IGM.13 Records
– Integrated Database. When periods go further they should not exceed more than
50% of the previous period, as a basic rule.

Maintenance plans will be reviewed once a year as a minimum, agreeing the eventual
modifications with the Client in relation to the assumed contractual compromises.

This information is provided by the Operation and Maintenance database according to

SK.IGM.13-Integrated Database.

Systematic Preventive Maintenance Plan:

Combining SAE J1739 / ISO14224 the suggested technique is applied to the

Methodical study of the consequences which causes the failures of every component
of equipment (subsystems for ISO 14224). It is a systematic process for identifying
potential failures before they occur with the purpose of eliminating or minimize the
risk associated to them. We perform it in order to:

• Recognize and evaluate the Potential Failures Modes and the causes
associated to equipment from the Components.

• Determine the effects of Potential Failures in the system performance and

identify the actions that can eliminate or reduce the potential failure occurrence.

• To analyze reliability of the system

• To quantify risks and reliability.

FMEA gets Failure Modes from the supposed failure of a Component. Considering
the components are perfectly identifiable, the supposed total or partial failures of
every one guide us directly to all Potential Failure Modes (function loss).

Spares

During the evaluation process of reliability to determine the maintenance plan, spares
will be evaluated with SK.IGM.20 - Rev.1_Critical Spares.

Resources

Once the list of equipment is ready, the needs of man-hours by specialty should be
evaluated for implementing the Preventive Maintenance Plan. In this way the
systematic preventive maintenance hours and total resources should be estimated.

Time evaluated for the accomplishment of the maintenance jobs consider from the
previous preparation, sign of work permissions, to finish all jobs to the finish of the
work permission.

Also in the maintenance of superior order (2000 hr., 4000 hr., 8000 hr.) the man – hour
estimation is the corresponding to the total of estimated maintenance hours and the
others to coincide. For example, for the case of 8000 hours maintenance, it is the sum
of the 2000 man hour plus the corresponding of the 4000 hours, plus 8000 hours.

The man – hour distribution will be equitable and proportional during the year of the
implementation plan.

To this systematic preventive Maintenance Plan, the resources as spares and

material, subcontracts, must be added for its accomplishment.

The following documents (SS LA Procedures) complement the methodology which we

pose:
• SK.IGM.03- Equipment Criticity.

• SK.IGM.06-Equipment Basic Condition.

• SK.IGM.13-Integrated Data base.

• SK.IGM.15- Predictive Maintenance.

• SK.IGM.16- Lubrication program.

• SK.IGM.17-State and Condition.

• SK.IGM.18-Protection Test.

• SK.IGM.20 – Spares for critical equipments.

After explaining in detail of what we propose to the maintenance plan elaboration, we

continue with the proposed methodology per the current service.

ƒ Program for equipment lubrication:

The criterion to use is to have a previous detailed lubrication plan which covers all
needs because of the importance and number of failures which appear by a lubrication
deficiency.
Our Methodology of work is at PERU LNG disposal. In the same way, as it is required
we offer our experience and know-how to develop the lubrication plans.

How to proceed: Selection of lubricants y generation of a lubrication plan SK.IGM.16 -

“Lubrication Program”.

Summary of the procedure scope:

• List points and select lubricant type.

• Create a basic plan of lubrication.

ƒ Book of inhibition of security and permissive systems:

IMPORTANT: EVERY TIME AN INHIBITION OF SECURITY OR PERMISIVE

SYSTEMS IS REALIZED, IT MUST FIGURE IN A PAGED BOOK WITH THE
EQUIPMENT TAG, DATE, EXECUTOR AND APPROVAL OF OPERATION HEAD,
TO HABILITATION DATE.

How to proceed: SK.OyM.06-Inhibition book.

ƒ Initial predictive evaluation

The criterion is to have the most information of state and condition from the beginning
both the equipment monitoring and State and Condition Evaluation of equipment. This
initial plan will adjust to the appearing tendencies
What it refers to predictive maintenance for this service, we develop it in a specific
chapter to amplify in detail what we pretend to realize.

How to proceed: Elaboration of a predictive maintenance plan of equipment and

facilities.
• SK.IGM.15- Predictive Maintenance plan.
• SK.IGM.16- Lubrication program.
• SK.IGM.24-Static inspection.
• SK.IGM.25- Predictive maintenance for electrical
equipments.
• SK.IGM.26-Turning Equipment Predictive.

All recommendations emanating during measurements or observations to equipment,

will be registered for initial evaluation and admission to CMMS.

ƒ Organization of Maintenance, Planning and Programming:

As a principal parte in the first stage, we will participate in the first design of planning
and programming. So we describe the methodology proposed for this service and that
is supported by our procedures.

As an experienced enterprise responsible to accomplish maintenance, we participate

in this stage giving feedback to the system.

Planning and Programming maintenance interventions and jobs have as a goal the
optimization and efficiency of the field results, minimizing break time of equipment and
resource use, avoiding reworks, overtime, etc.
Maintenance intervention and jobs should have an analysis treatment previous to
accomplishment, necessary and determinant in the fulfillment of objectives posed
before.

Skanska proposes a professional organization with Maintenance Engineering Profiles

and sufficient reliability to conform a work team to meet efficiently the identification,
assignment and performing stages to accompany PERU LNG on Planning and
Programming.

The planning and scheduling procedures include:

• Identifying a Job plan :

o Reference Procedure: SK.IGM.07 - “Identification
• Planning :
o Reference Procedure: SK.IGM.08-Planning
• Scheduling:
o Reference Procedure: SK.IGM.09-Programming
• Job Assignment:
o Reference Procedure: SK.IGM.10-Assignment
• Execution:
o Reference Procedure: SK.IGM.11- Execution

• Identification of Maintenance Works (IGM-09-07 Procedure)

It establishes a methodology for identifying maintenance jobs where Skanska perform

maintenance process.

This process lets identify the activities which require a maintenance action. Determine
what is necessary to do and then assign some of the following goals:

• An improvement in security aspects.

• The elimination of an unnecessary work.

• Productivity improvement.
• Reliability improvements.

• Avoid incorrect operation of equipment.

• Solution of recurrent problems of maintenance.

Flowchart of IGM-09-07 Procedure- Work identification.
• Identified Work Planning (IGM-09-08 Procedure)

In the case of the identified works, there is a methodology for their planning.
Attending to the list of the conditions this stage corresponds to Peru LNG. In the same
way we describe our maintenance management system and make available our
applicable procedures over this aspect to Peru LNG.

Once the maintenance work need is identified which has been prior evaluated by
Supervisors from Maintenance different specialties and has been decided to fulfill, the
next step is Planning, a process in which:

o An estimation of the necessary work is done.

o The necessary resources, parts, tools and equipment are identified for the
fulfillment of the jobs,

o The demanding time is estimated.

o Security and Environmental details in process are identified.

o Procedures of specific Works are defined.

o The job cost is estimated.

o Work is documented and a base for programming.

As a result, Planning provides:

o Working plans which can be used as a referent for future works.

o Materials, Tools and services.

o Support for daily or weekly programming.

Planners involve maintenance, engineering, warehouse, operations and Quality,

Security and Environmental Staff during the planning process.

A sequence of necessary activities for planning works is detailed in the next graphics.
Flowchart of IGM-09-08 Procedure - Work Planning

Identification Visit the place Yes Make a visit

No

Responsibles will be
Definition of Work consulted about the
Reach magnitude of the work.

Teams
Parts
Spec. Equipment.
Evaluation of Procedures
necessary License
resources Spec. Services
Tools
Estimated time

Work Plan
Definition

Keep planning in
the system

All resources Switch adquisition

No
together mechanisms

Yes

Programming

• Programming Identified Works of Maintenance (IGM-09-09 Procedure):

Programming is a work of resource anticipated distribution which is related to the
identified work needs.

Attending to the list of conditions, this stage corresponds to Peru LNG. In the same
way we will do a description of our maintenance management system and make
available our applicable procedures over this aspect to Peru LNG.

The programmer receives the previous planned WO (Work Orders) with a suggested
priority by the planner.

For every WO it is important to assure the availability of equipment and/or facilities to

take part and of detailed resources in Planning such as:

o Special permissions and/or authorizations.

o Necessary spare part and parts.

o Special equipment and Tools.

o Necessary Tools.

o Necessary Maintenance staff.

Once all resources are confirmed, the date of the team intervention will be determined.

A periodical meeting of programming is proposed in which all sectors should be

represented and in which priorities and criticity will be discussed to assign work force.
Preventive and predictive work activities will be given priority. It is important to have a
good communication to define and understand the programmed activities in all areas.

As a result of this meeting the program of definite work by specialty should be

elaborated.
Flowchart of IGM-09-09 Procedure - Work programming

• Assignment of Maintenance Work (IGM-09-10 Procedure)

In this process the person who will carry out the activities of programmed work will be
assigned. The responsible persons to assign the work to Maintenance Specialists are
the planners with the supervisors.

What we pretend to achieve is that 100% of the labor fulfill programmed daily basic
activities to avoid this way workless labor.

Individual work assignment will be informed to team staff as soon as possible.

Flowchart of IGM-09-10 Procedure – Work Assignment
• Execution of the Jobs (IGM-09-11 Procedure):

Job is implementing with the corresponding Job Procedures and Instructions

developed by PERU LNG and SKANSKA. Skanska has developed procedures for a
great part of the different work involved in the present service. We attach at the
present proposal a selection of instructions of work applied in the current service and
that is developed and tested by Skanska in its different services.

If there are Jobs which do not have a Job procedures and instructions, SKANSKA will
prepare them during the current maintenance service.

After the implementation of the Job process, SKANSKA will verify if it could be finished
as it was planned and if it was not possible. The Maintenance Supervisor will be
informed to reprogram it.
Flowchart of IGM-09-11 Procedure – Work Implementation
Critical Spares

We are conscious that this function is not part of the current service. In the same form,
as it is a new facility, we present our work methodology to Peru LNG. As if it deserves,
we may accompany Peru LNG in the application of the current methodology.

The criterion used to elaborate the critical spare lists is established in SK.IGM.20
procedure – “Critical Spares” that demands as first step the equipment analysis from
the criticity as it is known by IMS methodology and the need of the function
maintenance of every piece of equipment, with reliability criterion contained in the
framework criterion of Sustainability through PAS 55 regulation.

With the critical spare lists, we will determine:

• List of spares to store (Maintenance Engineering) with the goal to minimize

losses of production in case of equipment fault.
• Level of spare stocks through combined analysis of factors such as: cost-
benefit, obsolescence, warehouse conditioning, manufacturer agreements, financial
factors, etc.
• Order point according to the time required to obtain new stock, warehouse
capacity, freights, etc.

Usage Procedure: SK.IGM.20 Critical Spares – “Critical Spares”.

Scope Summary of the procedure:

• Critical spares.
• Programmed use spares.
• Statistical use spares.

Usage Procedure: Compiling and Updating of IMS Methodology, SK.OyM.01

Technical Information – Technical Information.

Scope Summary of the procedure:

• Stock of current spares and lubrications.

• Stock values of minimum and historic critical or previously defined spares.
• More used spare lists

ƒ Basic Condition of equipment:

The first assessment of state and condition of facility equipment done through the first
process should be improved with all the information and decisions obtained on site,
then the above mentioned first assessment is reviewed according to complementary
new data from maintenance interventions and in agreed with PERU LNG the Basic
condition for every equipment is set.

Usage Procedure: Definition and implementation of the basic condition of SK.IGM.06

Equipment and Facilities – “Equipment Basic Conditions”.

Scope Summary of the procedure:

• Definition and guidance for determining the basic condition of equipment.
• Investment Plans for determining the basic condition.
 These steps should be
There is a acomplished
YES standard version simultaneously
in the company

NO

Security: Performance: Internal:

Description of risk Control Sets Limit points of quantifies in max or min
elements performance and efectivity tolerance, strikes, vibration
of equipment levels, etc.

Protections: Operative:
Environment: Establishes presion parameters,
Setting Values of the same
Acceptable levels of losses temper, veloc, to meet correct
and emanations functioning

Define basic condition of

equipment

Process
of
User requirement
Implementation

Equipment meet basic

YES END
conditions

NO

It is urgent YES

NO

Economical assessment of
It can be Generates work orders
NO turning equipment to its It is rentable
requalified YES
basic condition

NO
YES

Reassign new values to

equipment or equipment Evaluate every step
operation

3.2. PHASE 2

o It comprises the following processes:

o Failure elimination
o Operation – Monitoring and inspections
PROCESS DEVELOPMENT, PHASE 2

• Failure Analysis Method (Procedure IGM-13-01):

The failure analysis will be conducted by Maintenance Specialists. For this purpose,
the most appropriate or available tool will be used (5-Whys method, RCA method,
Software, customer procedure, etc.) for determining root causes.

The failure analysis is done by a teamwork formed by a group of 3 or 4 specialized

people who can turn the analysis more valuable. In case of less complex failures the
analysis can be done without forming a group.

The Failure Report (IDF, Spanish abbreviation) is made according to the procedure
VSOP.MPI.IGM.09.05 which summarizes all the obtained information as a result of
applying detailed tools in this procedure, analysis, reports, researches, conclusions,
disposals, corrective actions and improvement proposals.
 • Whys Method?

The analysis is performed by a group of specialists who are related to the problem of
the failure and to the staff that have participated in the failure detection.

Data collected, that is, data which identify the team as well as the analysis results are
registered in the 5-Whys Chart.

For analysis, all possibly useful data are collected; thus, it is important to count on:
- Unquestionable and objective data
- Technical documentation that let analyze
the process: plans, sketches, isometrics, manuals, technical information and
process diagrams.
Events Sequence Description

Analysis objective is to find the root causes in order to control it and avoid repetition.

RCA Method (Procedure IGM-09-12)

The RCA is a disciplined methodology that aims at determining the causes of a

problem and avoiding its repetition. This methodology lets us determine the physical
roots related to the components of the equipments; the human roots that have to do
with non proper staff interventions; and at last, latent roots refer to deficiency in the
organization processes.

Failures can be classified in:

INTERMITTENT FAILURES: they have High Impact and low Repeatability.
Examples: total shut down because of power cut, main burst in critical equipment.
CRONIC FAILURES: they have Low/Middle Impact and high Repeatability, short time
shutdown. Examples: gasket losses, belt ruptures, etc.

A Team Work will be composed by the following people in order to carry out the RCA:

- A Main Analyst (AP) trained in CRA methodology

- One or more Associate Analyst(s)
- Representatives and people who know about Operations, and
- A Critic

Operations staff shall participate in all failure analysis processes.

ƒ Zero Failures

The criterion to be used is to eliminate all possible causes of recurrent failures and the
ones that occur for the first time. It deals with the permanent search of the increase or
improvement of the equipment reliability.

The sequence since identification until ending of Analysis is the following one:

Failure identification.

How to proceed: Identification, Reports, and Failure Analysis, SK.IGM.01 - “Failure

Report”.

Classification of relevant failures for analysis.

How to proceed: SK.IGM.02-Failure Ranking.

Failure Analysis: at this point both the failure analysis method and the RCA method
are applied for high complexity failures.
How to use: SK.IGM.12 - Root Cause Analysis .

Failure Analysis ending with a standard report where recommendations and actions
to be taken are considered.
How to proceed: Making Failure Report SK.IGM.05-Failure Report

According to conclusions after analysis, the following actions will be taken:

- Selection of jobs or preventive replacements.

- Selection or search of condition-based maintenance technique.
- Selection of monitoring technique.
- Carrying out changes in the design.
ƒ Operation, Monitoring and Inspections:
The criterion to be applied is the early detection of incipient failures as a part of
condition-based preventive maintenance. Also, it is fundamentally based on the
production staff observation.

A brief summary of the steps to be followed is done in order to guarantee the

implementation of condition-based preventive maintenance of equipment.

We can mention the Inspection Methodology of operator and maintenance technicians

in the Inspection Routine.

Operator route lists are used where control spots (potential failures) must be marked
on the equipments.

At this point must be the identification of incipient failures or degradation-based in

order to know abnormal condition of the equipment.

How to proceed: Inspection of Operator and Maintenance technicians SK.IGM.21 –

Control Routines.

All observations during interventions of equipment, inspections or route lists shall be

registered as working jobs and they are part of planning.
PHASE 3
It comprises the following processes:
- Systematic Preventive Maintenance Plan
- Implementation of Total Predictive Maintenance.
o
PROCESS DEVELOPMENT, PHASE 3

ƒ Systematic Preventive Maintenance Plan

(definitive)

In this stage the review of systematic preventive maintenance plans is carried out.
They are the result of initial evaluation or of maintenance programs provided by PERU
LNG. The objective is to optimize the inspections intervals and maintenance works
progressively based on historical information trying to maintain an accepted relation
between cost and risk, on the basis of a systemic methodology,

How to proceed: Making Preventive Maintenance Plans to Equipments and

Installations SK.IGM.14-“Predictive Maintenance”.

ƒ Implementation of Total Predictive

Maintenance

The criterion in this stage is to adjust the inspection spots, equipments and inspect
measurement and diagnose methods. Changes shall be carried out by a predictive
specialist.
How to proceed: Making Predictive Maintenance Plans to equipments and installations
• SK.IGM.15-Predictive Maintenance.
• SK.IGM.16-Lubricating Program.
• SK.IGM.24-Inspection of Static equipments.
• SK.IGM.25- Electrical Predictive.
• SK.IGM.26-Predictive Rotating Equipment

Summary of the procedure scope:

• Static equipment inspection

• Mechanical vibrations monitoring
• Lubricating oil analysis
• dielectric oil analysis
• Electric power analysis.
• Electric isolating analysis.
• infrared thermography analysis

3.4 PHASE 4

Comprises the following processes:

- Technical information of equipment
- Critical instruments.
o
o PROCESS DEVELOPMENT, PHASE 4
o
ƒ Technical information of equipment

The criterion in this first stage is to have minimal indispensable information to have
equipments protected and to have basic information that let us solve problems
implying information availability, like being logic, unifilar, etc.
Once this stage is over, information shall be completed, according to procedure
description.

How to proceed: Collection and maintenance of technical information of SIM-SOM

SK.OyM.01-Technical information.
ƒ Critical Instruments
The criterion is to have a list of critical measurements and instruments affecting
the quality of the product, security and environment.
In early stages critical instrument was defined as the one that takes part as
basic condition such as equipment protectors.

In brief, in this category we find:

- All damage detection systems: gas, fire.
- All Shut Down systems in the plant.
- All systems controlling pollution or in risk of pollution such as being outflow quality,
runoff control, emanation control.
- Measurement of the quality of the product delivered or control over it at
intermediate stages.
3.5 PHASE 5
o It includes the following processes:
o Training Plan.
o Procedures and Instructions.

DEVELOPMENT OF PHASE 5 PROCESS

ƒ Training Plan:

What is related to training is described in chapter XXX. What it follows is the

description of training in the work methodology we are proposing.
The Maintenance Management System developed by SS includes training as system
feedback.
The identification of training needs is one of the system solutions which let a positive
feedback.

Application Procedures: SK.RH.01 Identification, Planning and Satisfaction of Training

Needs.

Objectives:
Training is aimed to the following objectives:
o Review and upgrading of Maintenance techniques
o Improvement of work methodologies
o Integration of different areas of plants or services
o Social Responsibility and development of local staff

ƒ Maintenance Procedures and Instructions:

A brief summary of the steps for selecting and/or elaborating the necessary Work
Procedures and Instructions to operate and maintain the facilities is described.

Step 1: Jobs Identification

Once the equipment list is ready and the Preliminary Preventive Maintenance Plan
formulated, a list of all Maintenance jobs that should be accomplished can be
obtained. These jobs must be transformed into Work Orders (WO).
Step 2: Critical Jobs Identification
A selection of the Critical Jobs is done from the list obtained through Step 1. It is very
important to take into consideration the equipment criticity, the accomplishment of all
quality requirements, the established Environment and Security and significant
environmental risks and aspects which have emerged from the study of the jobs.

Step 3: Determination of necessary procedures.

Step 4: Procedures Selection

Once the necessary Work Procedures and Instructions are determined, proceed to
recognize the existing Work Procedures and Instructions in the SS library.
In the list of Work Procedures and Instructions there is a great amount of particular
Work Procedures and Instructions which following the guidelines of the Management’s
(mandatory) are generated as a proper need of application in any project or operation
and that are centralized in the system securing sector which have all the control of this
documentation.

Step 5: Elaboration of Work Procedures and Instructions.

In the case any of the critical jobs are not covered by any of the existing Work
Procedures and Instructions, the corresponding Work Procedures and Instructions,
should be elaborated.
Application Procedure: C.MPI.AC.05.01

Step 6: Applicable Work Procedures and Instructions

Spread the Applicable Work Procedures and Instructions.
Both the Management System Manual and the Work Procedures and Instructions are
spread among the service staff.

Step 7: Review os Applicable Work Procedures and Instructions

Every relevant defect or the non-fulfillment of any specific requirement (of quality,
environment or security) which is evident during the fulfillment of Projects or
Operations in products or Works assigned to Peru LNG, generates a Non- Compliance
Report.
The relevant Non-Compliance requirements or the ones which show a repetition
pattern, generate “corrective actions” which seeks to avoid the commitment of the
same defect. Through this identification method, the cost of Non-quiality is evaluated.
The “preventive actions” are also applied since the analysis of situations which show a
risk existent of significant defects in the supplies to the clients.
Either the non – compliances, reactive and preventive actions and operative
modifications (processes and equipment) may be a determinant factor of modification
or upgrading of Current Work Procedures and Instructions or the creation of new one.
3.6 PHASE 6

It includes the following processes:

o Determining maintenance indicators.

o Establishing objectives and goals.
o Analysis.

DEVELOPMENT OF PHASE 6 PROCESS

o
ƒ Determining maintenance indicators:

We think that Peru LNG has determined the indicators which are established in the
contract. In same way SS manages particular indicators in its operations which must
be followed in our own management.

In the procedures, basic indicators are presented at the very start of the service, being
able to incorporate other indicators according to service needs or in cases with
particular rates.

Application Procedures: SK.IGM.19 – Maintenance Indicators (Key Performance

Indicators).

ƒ Establishing objectives and goals:

The criteria for SS procedure to manage and control its indicators is starting with fixed
values in the indicators and then establishing goals. The selected Indicator values
could be taken from similar enterprises and fix them according to the analysis of the
experience.
The indicators and the achieved goals will be issued monthly, being visible for all the
staff knowledge.

ƒ Analysis:

As an introduction the information for your analysis is divided in:

o Key Performance Indicators: Historical data is taken and the information is
processed and presented in monthly standard reports (Service Factor; Availability
Factor, etc.).
o Maintenance management: All work done over the equipment with its
accomplishment rate is registered through Work Orders and corresponding jobs.
o Technical historical and detailed Information: they are the registers and
measurements. It is all the information with high rate of detail that will be carried on
attached report with Finished Work Orders.

The criteria are:

o Guarantee the reliability analysis of the systems.

o Guarantee the analysis to identify continuous problems and failures in the
systems.
o Guarantee the analysis of the maintained jobs applied to the systems. .
o Guarantee the analysis of the system costs.

The information is divided into three groups to be analyzed:

o Historical Information
9 Statistical Analysis of REASONS of the WORK ORDERS.
9 Statistical Analysis by type of equipment. .
9 Analysis by type of WORKSHOP.
9 Priority Statistical Analysis.
9 Cost Analysis by plant, equipment, type of equipment.
9 Preventive Analysis by condition.
9 ABC Cost Analysis and Budget Control.

o Failure Information
9 Repetitive failure analysis.
9 Detailed failure analysis according to ranking.

o Stoppage Information
9 Most frequently strike analysis.
9 Stoppage Cause Analysis.
9 Stoppage Component Analysis.

WITH THIS INFORMATION, THE MAINTENANCE PROGRAM IS FEEDBACK FOR

IMPROVEMENT, IMPROVEMENT AND REPLACEMENT ARE JUSTIFIED. THAT IS
WHY IT IS CONSIDERED AS ONE OF THE MOST IMPORTANT PART IN THE
CONTINUOS IMPROVEMENT CYCLE OF THE MAINTENANCE MANAGEMENT.

3. FLOWCHART – SIM IMPLEMENTATION:

The description of the proposed methodology for this service can be resumed in the
following flowchart in which every stage is backed by its respective procedures of
application of our Maintenance Management System.
BM