GROUP CASE STUDY ASSIGNMENT

DESCRIPTION This is a group case study. Each group should include 3-5 students. Students are expected to actively participate in the group discussion, share their thoughts and ideas, and contribute to the study. Students of each group will receive same score for case studies, unless I receive complaints about inactive group members. If this is the case, inactive students will NOT receive credit for the case study. The due date for the case report is shown on the class schedule. The report should be up to 10 pages in length including the cover and appendices, with 1 margins on all sides, double-spacing, and 12 point font. The cover of the report should include title, class code and name, section number, student names, and date of completion.

ASSIGNMENTS Shale Oil Company Shale Oil Companys Aston, Ohio, manufacturing complex comprises several operating units. 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, 7 days a week, and must be shut down for maintenance on a predetermined schedule. One such unit is Distillation Unit No. 5, or DU5. Studies have shown that DU5 can operate only 3 years without major equipment breakdowns, and excessive loss of efficiency. Therefore, DU5 is shut down every 3 years for cleaning, inspection, and repairs. DU5 is the only distillation unit for crude oil in the Aston complex, and its shutdown severely affects all other operating units. Some of the production can be compensated for by Shale refineries in other locations, but the rest must be processed and stored before the shutdown. Without proper planning, a nationwide shortage of Shale gasoline could occur. The time of DU5s 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 shutdown time. The first phase of a shutdown is to open and clean the equipment. Inspectors can then enter the unit and examine the damage. Once damages are determined, the needed repairs can be carried out. Repair times can vary considerably, depending on what damage the inspection reveals. Based on previous inspection records, some repair work is known ahead of time. Thorough

cleaning of the equipment is also known to improve the units operating efficiency. The table below lists the many maintenance activities and their estimated completion times.

DISCUSSION QUESTIONS 1. Determine the expected shutdown time and the probability that the shutdown can be completed 1 week earlier. 2. What are the probabilities that Shale finishes the maintenance project 1, 2, 3, 4, 5, or 6 days earlier? 3. Shale Oil is considering increasing the budget to shorten the shutdown. How do you suggest the company proceed? Preventive Maintenance of DU5 Time Estimates (in Days) Activities 1-2 Circulate wash water throughout unit 2-3 Install blinds 3-4 Open and clean vessels and columns 3-5 Open and clean heat exchangers; remove tube bundles 3-6 Open and clean furnaces 3-7 Open and clean mechanical equipment 3-8 Inspect instrumentation 4-9 Inspect vessels and columns 5- Inspect heat-exchanger 10 shells 5- Inspect tube bundles 11 6- Inspect furnaces 12 Optimistic 1 1.5 2 1 Most Likely 2 2 3 2 Pessimistic 2.5 2.5 4 3

1 2 2 1 1 1 2

2 2.5 4 2 1.5 1.5 2.5

4 3 5 3 2 2 3

6- Retube furnaces 17 7- Inspect mechanical 13 equipment 7- Install new pump 18 mechanical seals 8- Repair instrumentation 19 9- Repair vessels and 14 columns 10- Repair heat-exchanger 16 shells 11- Repair tube bundles; 15 retube 12- Repair furnaces 17 13- Repair mechanical 18 equipment 14- Test and close vessels and 20 columns 15- Install tube bundles into 16 heat-exchanger shells 16- Test and close heat 20 exchangers 17- Test and close furnaces 20 18- Test and close mechanical 20 equipment 19- Test instrumentation 20 20- Pull blinds 21 21- Purge all equipment with 22 steam 22- Start up unit 23

15 1 3 3 14 1 2 5 10 4 1 1 1 1 2 1.5 1 3

20 1.5 5 8 21 5 5 10 15 5 2 2 2 2 4 2 3 5

30 2 8 15 28 10 10 20 25 8 3 2.5 3 3 6 2.5 5 10