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Ch07 Internet Case Shale Oil

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CHAPTER 7
PROJECT MANAGEMENT
Internet Case Study: Shale Oil Company
The Shale Oil Company contains several operating units that comprise its Aston, Ohio, manufacturing
complex. These units process the crude oil that is pumped through and transform it into a multitude of
hydrocarbon products. The units run 24 hours a day, seven days a week, and must be shut down for
maintenance on a pre-determined schedule. One such unit is Distillation Unit No. 5, or DU5. Studies have
shown that DU5 can operate only 3.5 years without major equipment breakdowns and excessive loss of
efficiency. Therefore, DU5 is shut down every 3.5 years for cleaning, inspection, and repairs.
DU5 is the only distillation unit for crude oil in the Aston complex, and its shut down severely affects all
other operating units. Some of the production can be compensated by Shale refineries in other locations,
but the rest must be processed before the shutdown and stored. Without proper planning, a nationwide
shortage of Shale gasoline could occur. The timing of DU5's shutdown is critical, and the length of time
the unit is down must be kept to a minimum to limit production loss. Shale uses PERT as a planning and
controlling tool to minimize shut-down time. The preventive maintenance for DU5 is as follows.
Activities
1. Circulate wash water throughout unit
2. Install blinds
3. Open and clean vessels and columns
4. Open and clean heat exchangers, remove tube bundles
5. Open and clean furnaces
6. Open and clean mechanical equipment
7. Inspect instrumentation
8. Inspect vessels and columns
9. Inspect heat exchanger shells
10. Inspect tube bundles
11. Inspect furnaces
12. Retube furnaces
13. Inspect mechanical equipment
14. Install new pump mechanical seals
15. Repair instrumentation
16. Repair vessels and columns
17. Repair heat exchanger shells
18. Repair tube bundles, retube
19. Repair furnaces
20. Repair mechanical equipment
21. Test and close vessels and columns
22. Install tube bundles into heat exchanger shells
23. Test and close heat exchangers
24. Test and close furnaces
25. Test and close mechanical equipment
26. Test instrumentation
27. Pull blinds
Time Estimates (days)
Opt Most Likely Pess
1
2
2.5
1.5
2
2.5
2
3
4
1
2
3
1
2
4
2
2.5
3
2
4
5
1
2
3
1
1.5
2
1
1.5
2
2
2.5
3
15
20
30
1
1.5
2
3
5
8
3
8
15
14
21
28
1
5
10
2
5
10
5
10
20
10
15
25
4
5
8
1
2
3
1
2
2.5
1
2
3
1
2
3
2
4
6
1.5
2
2.5
Pred(s)
1
2
2
2
2
2
3
4
4
5
5
6
6
7
8
9
10
11
13
16
18
17, 22
12, 19
14, 20
15
21, 23, 24, 25
28. Purge all equipment with steam
29. Start up unit
1
3
3
5
5
10
27
28
1. Determine the expected shutdown time and the probability the shutdown can be completed one day,
two days, three days, four days, five days, six days, or seven days earlier?
2. Shale Oil is considering increasing the budget to shorten the shutdown. How do you suggest the
company proceed?
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