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IMPROVING OPERATION COST EFFICIENCY BY

DIRECT COMBINE CYCLE START-UP MODE

IN TAMBAK LOROK CCPP

BY

1. DWI HANDOYO SAPUTRONIP: 780321178 I

2. BAMBANG SUPRIHANTONIP: 7293592 K3

3. BOWO PRAMONONIP: 7291007 K3

PT. INDONESIA POWER UBP SEMARANG2008


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Tambak Lorok Combine Cycles Operational Optimation

Direct Combine Cycle Start-Up Mode

Together for a better tomorrow Page. 2 f r om 22

LETTER OF LEGALIZATION

This innovation has been approved and implemented in

Tambak Lorok Combine Cycle Power Plant.

General Manager

PT. Indonesia Power UBP. Semarang

(Ir. Zaenal Mustofa)


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ABSTRACT

Keywords : Start-up, CCPP (Combined Cycle Power Plant), Open Cycle, Combine

Cycle, Diverter Damper, HRSG (Heat Recovery Steam Generator)

Start-up design of Tambak Lorok CCPP has a source heat loss. These

losses appear from gas turbine start-up process and diverter damper

opening process. Diverter damper is a steel made plate between gas

turbine stack and HRSG. Modification in start-up mode is a must to

extinguish the losses; we name it as a Direct Combine Cycle Start-Up

mode. This type of start-up is already implemented successfully in GTG

2.2, April 2008. With this modification, we save the heat equal with

13,290,084 liters of No. 2 Oil HSD for 6 gas turbines in a year.


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FOREWORD

Alhamdulillahi Rabbil Alamiin, is the words only for the God who has giving us His

Bless to finish this innovation successfully. Also, we want to say thanks to our

team work in PT. Indonesia Power UBP. Semarang and UBHar Semarang,

especially for the operators and technician of PLTGU Tambak Lorok. Without

them, we cannot finish the job completely.

As a human being, we realize that this innovation is completely not perfect. For

that, your constructive word and advice is what we need. At the end, we hope

this paper can be useful for all of us. Amiin.

Wassalam.

Semarang, May 2008


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TABLE OF CONTENT

Letter of LegalizationAbstractForeword

Table of ContentTable of Figure

Chapter I PREFACE1.1 Background1.2 Problems Identification1.3 Objective1.4 Scope1.5

Methodology

Chapter II THEORITICAL BACKGROUND2.1 Open Cycle And Combine Cycle Operation Mode2.2 Start-up Design2.3 Heat Calculation2.4 Sulphur Corrosion Effect On HRSG Tubes

Chapter III INNOVATION3.1 Direct Combine Cycle Start-up Mode3.2 Modification Needed3.3 Start-up Mode Comparison

Chapter IV BENEFIT4.1 Financial Benefits4.2 Non Financial Benefits4.3 Risk Analysis

Chapter V CONCLUSION AND SUGGESTION5.1 Conclusion5.2 Suggestion

REFERENCE LISTBIODATA

234

56

77777

89

1011

121314

171819

2020

2122


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FIGURE AND TABLE LIST

Figure Title Page

1 Gas Turbines open cycle operating mode 82 Gas Turbines combine cycle operating mode 93 Flowchart of Tambak Lorok CCPP design start-up 9

4 Dew Point Sulphur Graph. 115 Flowchart of Tambak Lorok Direct Combine Cycle start-up mode 126 Graph status of Direct combine cycle Mode start up 14

7 Graph status of Design combine cycle Mode start up 148 Graph of HRSG HP steam temperature in GTG 2.2 April 21th2008 16

Table Title Page1 Standard Operating Procedure of Direct Combine Cycle Start-up Mode 112 Matrix of diverter damper indicationposition signal 13

3Comparisons of 2 different kind of start-up mode, Direct combinecycle and design start-up mode

15

4Energy Calculation base on design start-up mode (step by stepopening diverter damper)

17

5 Diverter damper failure calculation cost 186 Financial benefits Resume from Direct combine cycle start-up mode 18

7Risk analysis for Direct combine cycle start-up mode with itsmitigation

19


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CHAPTER IP R E F A C E

1.1 Background

Tambak Lorok CCPP (Combine Cycle Power Plant) is designed to beoperated in open cycle (combustion gas is release to ambient from gasturbines stack) or combine cycle (combustion gas is release to HRSG-HeatRecovery Steam Generator, to produce steam for steam turbine). Thesetwo kinds of operation can be change over (from open to combine cycle) byopening the diverter damper step by step, which is located between gasturbine stack and HRSG. This start-up mode operation resulted in a certainheat loss (when gas turbine operated in open cycle and when opening thediverter damper).

Beside that, Tambak Lorok CCPP is a start stop operating plant. It happenssince 12 years ago and makes the diverter damper always operated openclose in high temperature and suffers from creep and thermal fatiguephenomena. Those phenomena are a source of diverter damper failure, atleast once a year with 4 days shutdown time.

1.2 Problems Identification

To minimize the problems above (no open close diverter dampersoperation and avoiding the heat loss), we need a modification in TambakLoroks start-up mode. So, what kind of modification should we do? Andwhat are its effects from operation and maintenance point of view?

1.3 Objective

This innovation has two purposes:

1. Avoiding heat loss when starting up Tambak Lorok CCPP

2. Avoiding Diverter Damper failure

1.4 Scope

Scope of this modification is in gas turbine MS9001E Tambak Lorok CCPP

Semarang Indonesia and its HRSG.

1.5 Methodology

All the data needed is come from real time data of Tambak Lorok CombineCycles start up operation mode in April 2008.


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CHAPTER II

THEORITICAL BACKGROUND

2.1 Open Cycle And Combine Cycle Operation Mode

1. Open Cycle

In an open cycle mode, gas turbines combustion gas is released straight togas turbines stack (see figure 1). In this condition, diverter damper is in aclose condition and hold back the combustion gas from entering HRSG. Thisgas has a high temperature, about 560 oC. With this operation mode the gas

turbine has a low thermal efficiency, around 29%.

Figure 1. Gas Turbines open cycle operating mode.

2. Combine Cycle

In combine cycle system, the heat from gas turbines combustion gas isbeing used again in HRSG, to produce steam (water vapor) as a workingfluid in steam turbine generator (see figure 2 below). At this condit ion,

diverter damper is in open position and the gas is spreading out in HRSGtubes. Temperature of gas released in HRSGs stack is lower than GasTurbines stack, around 150

oC, so the unit efficiency goes up into 40%.


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Figure 2. Gas Turbines combine cycle operating mode.

2.2 Start Up Design

Year 1998, is the first year operation of Tambak Lorok CCPP, 2 x 500 MW. Thestart-up process is shown in flowchart below.

Figure 3. Flowchart of Tambak Lorok CCPP design start-up.

END

START

START UP COMMANDFROM TRANSMISSION

START UP GTG

START UP HRSG

OPEN DIVERTER DAMPER

20, , 100%

START UP STG

(STEAM TURBINE GEN.)


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Generally, combine cycle start-up is started by opening diverter damper step bystep until 100% open. After the quality of high pressure steam in HRSG pass thelimit (500oC 45 bar Cold Start), we can rolling the Steam Turbin e until it producean electricity.

2.3 Heat Calculation

Base on design start-up, there are sev eral heat loss as describe above:

1. Heat Loss when Gas Turbine Start

2. Heat loss when opening Diverter Damper

Heat loss calculation that use in this paper is based on enthalpy contains incombustion gas. We also assume that combustion gas is an ideal gas, since it is ahigh temperature fluid.

P = m . h

With P = Heat Loss (Watt)

m = mass flow rate of combustion gas (kg/s)

h = differential enthalpy between combustion gas and ambient air 1.

This heat loss is a potential loss of power. To make it as real as turbines output,we have to add another factor, machine efficiency (). So the real heat loss is :

W = P .

For combine cycle, the is 40%.

2.4 Sulphur Corrosion Effect On HRSG Tubes

Combustion gas from the gas turbine is a source of sulphur corrosion in HRSG

Tubes. Sulphur content on liquid fuel (No. 2 Oil) is oxidiz ing in combustion

process and change into SOx gas. This gas will condensate into H2SO4 when the

surrounding temperature comes into its dew point. H2SO4 is corrosive to the steel

metal, especially the upper part of HRSG tubes (economiser tubes). Below is the

reaction that happens in combustion process.

H20 + SO3H2SO4

The sulphur dew point is a function of sulphur content in the fuel. This relation

can be seen in figure 4 below.

1Enthalpy data comes from Yunus A. Cengel, Robert H . Turner, Fundamentals Of

Thermal-fluid Sciences, 2ndEd, Mc Graw Hill, NY, 2005.


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Figure 4. Dew Point Sulphur Graph.

No. 2 oil in Tambak Lorok Combine cycle has sulphur content on 0.5% Wt. Base

on figure 4, the minimum point to reach the sulphur corrosion (dew point

sulphur) is 95oC. So, to reduce the effect, operation temperature setting in HRSG

Tube is 135oC (condensate water temperature entering the economizer/HRSG

setting).


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CHAPTER III

I N N O V A T I O N

3.1 Direct Combine Cycle Start-up Mode

Below is the flowchart of Tambak Lorok CCPP start-up mode that use to avoidthe heat loss, we call it as Direct Combine Cycle Start-up Mode.

Figure 5. Flowchart of Tambak Lorok Direct Combine Cycle start-up mode.

The operating procedure of Direct Com Direct Combine Cycle start-up mode hasbeen done at gas turbine 2.2 in April 16

th2008 and April 21

th2008. We can see

the detail as below.

Table 1. Standard Operating Procedure of Direct Combine Cycle Start-up Mode.

No Item PIC

1 Diverter damper switch indication in CLOSE position. Local

2 Start HRSG Oprtr Control R

3 Diverter damper switch indication in OFF position. Local

END

START

START-UP COMMAND

FROM TRANSMISSION

START UP HRSG

START UP GTG

OPEN DIVERTER DAMPER100%

START UP STG

After gas turbine online, the load ramprate is based on HRSG HP steamtemperature raise (5 11oC/min)

Modification adding an indication

switch of diverter damper.

HRSG High Pressure steamquality: 500oC in 45 bar.


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No Item PIC

4 Start GTG Oprtr Control R

5 GTG Online (SIMPLE mode) Oprtr Control R

6 GTG set load = 15 MW Oprtr Control R

7 Observe temperature raise of HRSG HP Steam (max. 11oC/min) Oprtr Control R

8Raise the Gas Turbine load 5 MW/ per 5 minutes after the HRSG HPSteam temperature stabilize in 5oC/min

Oprtr Control R

9 When Gas Turbine load reach40 MW, execute : COMBINE Oprtr Control R


11Raise the Gas Turbine load 10 MW/ per 5 minutes after the HRSG HPSteam temperature stabilize in 5oC/min

Oprtr Control R

12If the HP Steam permissive is ok (pressure, temperature, and flow),change the HP Drum status from start level into operating level

Oprtr Control R


14 After HP Steam combine, Diverter damper switch indication in OPENposition. Local

3.2 Modification Needed

From the flowchart above, below are the modifications needed for DirectCombine Cycle Start-up mode.

Adding a switch of indication signal in MCC panel of HRSG (OPEN - CLOSE OFF position) to make sure that diverter damper signal is on function, asneeded in existing sequence of gas turbine start and HRSG start.

Below is a matrix of diverter damper indication signal and its function.

Table 2. Matrix of diverter damper indicationposition signal.

NO CONDITIONSWITCH INDICATION

POSITIONREMARKS

1 START HRSG CLOSETo give signal to DCS that Diverter Damperis in Close position (as HRSG StartPermissive)

2 START GTG OFFTo give signal to Mark V that DiverterDamper is in Close position (as HRSGProtection)

3 GTG ONLINE OFFTo give signal to DCS that Diverter Damperis in Closeposition (as HRSG Protection)

4 COMBINE OPEN

To give signal to DCS and Mark V thatDiverter Damper is in Open position(asHRSG Protection, when HRSG tripped, gasturbine must tripped too)


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3.3 Start-up Mode Comparison

Two figures below are a real time graph of two kind start-up modes. Thefirst one is Direct combine cycle start up mode (GTG 2.2 April 21

st2008)

and the last one is Design combine cycle start up mode (GTG 2.3 April 28th

2008). Both of them is a cold start.

Figure 6. Graph status of Direct combine cycle Mode start up.

Figure 7. Graph status of design combine cycle Mode start up.

Notes : TTXM = Combustion gas temperature (Exhaust gas from gas turbine)

IGV = Inlet Guide Van Compressor position (%)

Damper = Diverter Damper position (%)


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From the two figures above, we can compare as below.

Table 3. Comparisons of 2 different kind of start-up mode, Direct combine cycle and design start-up mode.

April 21th2008 April 28th2008

GT 2.2 GT 2.3No Item Unit

Direct Combine Cycle Mode(Cold Start)

Design Mode(Cold Start)

1 StartMinutefrom

0 0

2 Purging Minute 7* 3

3Gas Turbine Firing stage (gasturbine speed raise)

Minutefrom

12 5

4Ga Turbine Fsnl (Full speed

no load)

Minute

from22 15

5 Open diverter damperMinutefrom

- 74

6 Total time of start-up process

Minute

from 84 138**

7Total time from gas come to

HRSG until the HP steam canrolling up steam turbine

Minute 72 64

8Ramp rate Turbine Gasaverage

MW/minute 1.094 0.781

9HP steam temperature raise

averageoC/minute 6.258 5.66

Notes :

* Purging time needed in direct combine cycle mode is 4 minutes long than design start-up mode, asmachine design requirement (Mark V sequence control setting).

**This figure is not actually shown, load hold out in 40 MW for 50 minutes.

From table 3 above, we can see that there is no significant figure between twokinds of start-up mode. There are 8 minutes differences (point 6), in total time,start from combustion gas come to HRSG until the HP Steam can rolling up,

These differences can be optimalize by adding the gas turbine ramp rate in directcombine cycle mode. It happens because of the HP steam temperature raiseaverage are still under 5 11oC/menit.

Below is the curve of HP steam temperature raise in HRSG when Direct CombineCycle start-up mode, April 21

st2008.


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Figure 8. Graph of HRSG HP steam temperature in GTG 2.2 April 21 th2008.


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CHAPTER IV

B E N E F I T

4.1 Financial Benefit

Financial benefits that come from this innovation are:

1. Operational Benefit/Energy benefits from heat recovery

Below is a table of energy calculation from Direct combine cyclecomparing with a normally open diverter damper

2.

Table 4. Energy Calculation base on design start-up mode (step by step opening diverter damper)

Amb Amb EXH exh Heat Loss damper TIME Energy

LOAD IGV FUEL temp h

ExhTemp. FLOW h Exh. Gas open LossRPM

MW DEG KG/S degC kj/kg DEGC KG/S kJ/kg kW % minutes kwh

A B C D=(C-A) x B E F = D x E/60

300 0 34 0.2 32 305.37 65 194.21 338.15 6366.0873 0 1 106

1000 0 34 0.3 32 305.37 289 194.35 567.41 50927.357 0 1.5 1,273

1500 0 34 1 32 305.37 449 194.49 737.14 83975.22 0 1.5 2,099

2000 0 34 1.4 32 305.37 464 194.63 753.36 87191.398 0 1.5 2,180

2500 0 34 1.7 32 305.37 396 194.77 680.23 73011.95 0 1.5 1,825

2750 0 52 2 32 305.37 329 297.89 609.28 90530.269 0 1.5 2,263

3000 0 56 2.3 32 305.37 323 319.54 602.98 95097.469 0 1.5 2,377

3000 10 56 2.6 32 305.37 330 319.82 610.33 97532.435 0 1.5 2,438

3000 20 56 3.2 32 305.37 370 320.1 652.57 111136.93 0 2 3,705

3000 30 56 3.7 32 305.37 412 320.38 697.33 125576.27 0 2 4,186

3000 40 56 4.1 32 305.37 451 320.66 739.3 139144.44 20 4.5 8,349

3000 50 56 4.8 32 305.37 492 320.8 783.81 153482.08 30 6 9,740

3000 60 56 5.4 32 305.37 527 321.08 822.12 165916.29 40 6 9,209

3000 70 58 5.8 32 305.37 560 321.36 858.51 177757.2 50 6 7,674

3000 75 58 6.2 32 305.37 560 321.5 858.51 177834.64 60 4 4,424

3000 80 67 6.4 32 305.37 560 335.4 858.51 185523.29 70 10 8,888

3000 90 83.9 6.8 32 305.37 560 363.2 858.51 200900.59 80 6 3,557

3000 100 86 7.4 32 305.37 560 391 858.51 216277.9 90 12 3,557

Total Heat Loss (KWh) ---> a 77,851

Machine Combine Cycle Mode efficiency (%) ---> b 40

Equal with electricity generated (Kwh) ---> c = a x b 31,140

Electricity Price (Rp/Kwh) ---> d 1,900Total Energy Loss from design start-up mode for each start-up in 1 gas turbine 59,166,517

From the table above, total energy loss in design start-up mode reach Rp.59,166,517 for one start-up. If we assume that in one month, Tambak LorokCCPP has 22 times start-up (30 days minus 2 x RSH in a week), so the totalenergy losses (as energy benefit) in a year are:

2Data of average design start -up mode

firing

Gasturbinonline

Steam

Ok


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Rp. 59,166,517x 22 x 12 = Rp. 15,619,960,394

2. Maintenance Benefit/Financial benefits from avoiding diverter damperfailure

By using a Direct Combine Cycle start-up mode, we can avoid thediverter damper failure (breakdown or broken by creep or thermalfatigue). This failure makes the gas turbine offline for about 4 days.This failure happens once in a year. Below is the total cost from thediverter damper failure.

Table 5. Diverter damper failure calculation cost.

No Item Unit Open Cycle Combine Cycle

1 Sfc a liter/kwh 0.35 0.24

2 Output b Kw 100,000 150,000

3 Days of failure c hari 4 4

4 Operation hour in a day d jam 8 8

5 Total operating hour e=c*d jam 32 32

6 Production f=e*b Kwh 3,200,000 4,800,000

7 Production difference g Kwh 1,600,000

8 Equal with liquid fuel HSD h=a*g liter 384,000

9 Equal with fuel price i=h*8640 Rp. 3,317,760,000

10Maintenance cost to fix thediverter damper for 1 time failure

j Rp. 200,000,000

11 Total Maintenance Benefit K=i+j Rp. 3,517,760,000

From the two aspects above we can conclude that Direct combine cycle start-up mode can reduce the operation and maintenance cost as below.

Table 6. Financial benefits Resume from Direct combine cycle start-up mode.

No Item Unit Value

1 Energy (from heat loss) Rp/year 15,619,960,394

2 Operation and maintenance cost improvement Rp/year 3,517,760,000

Total for 1 gas turbine in a year Rp. 19,137,720,394

Total for 6 gas turbine in a year Rp. 114,826,322,366

Equal with liquid fuel HSD for 1 gas turbine in a year Liter2,215,014

Equal with liquid fuel HSD for 6 gas turbine in a year(HSD price= Rp. 8640/liter)

Liter 13,290,084

4.2 Non Financial Benefits


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Non financia l benefits from this innovation are:

a. Raising Company image

b. Raising unit availability by reducing diverter damper failure number

4.3 Risk Analysis

Table 7. Risk analysis for Direct combine cycle start-up mode with its mitigation.

If Direct Combine Cycle Start-up mode is not implemented

No. Risk Risk Level MITIGATION

1 Diverter Damper Failure High Tightening SOP of operation and maintenance

2 Start-up Heat Loss High Tightening SOP of operation and maintenance

3 HRSG Tube LeakMedium Tightening SOP of operation and maintenance (HP Steam

raise : 5 - 11oC/minutes)

If Design Combine Cycle Start-up mode is implemented

No. Risk Risk Level MITIGATION

1 Diverter Damper Failure Low Tightening SOP of operation and maintenance2 Start-up Heat Loss Low Tightening SOP of operation and maintenance

3 HRSG Tube Leak Low Tightening SOP of operation and maintenance


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CHAPTER V

CONCLUSION AND SUGGESTION

5.1 Conclusion

Gas turbine MS9001 Tambak Lorok CCPP is possible to do the thermalimprovement by using Direct combine cycle start -up mode.

Direct combine cycle start-up mode will avoid diverter damper failure.

Direct combine cycle start-up mode can minimizing energy loss Rp.59,166,517for each start-up in 1 gas turbine, and Rp. 3,241,280,000for every diverter damper failure. Totally, equal with Rp.

114,826,322,366 in a year for 6 gas turbine (or 13,290,084 liters HSDliquid fuel).

From the last experience in Direct combine cycle start-up mode (April16

th, April 21

stand May 4

th2008 ) we found no evidence of negative

side for the machine itself.

Shutdown process with Direct combine cycle mode will do the samelike start-up does but in a small scale aspect.

5.2 Suggestion

We need to socialize this to another unit, so as a corporate we will geta big number of benefits.


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REFERENCE LIST

1. Operational data of GTG 2.2 Tambak Lorok CCPP start-up, April 21st2008.

2. Operational data of GTG 2.3 Tambak Lorok CCPP start-up, April 28 th2008.

3. Manual Book GTG and HRSG Tambak Lorok CCPP.

4. ISO 9001 Document: SOP Start-Up GTG, HRSG and STG Tambak Lorok CCPP.

5. Yunus A. Cengel, Robert H. Turner, Fundamentals Of Thermal-fluid

Sciences, 2 ndEd, Mc Graw Hill, NY, 2005.


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BIODATA

NAME : DWI HANDOYO SAPUTRO

NIPEG : 780321178 I

TITLE : ENJINER MESIN

TTL : JAKARTA, 29-06-1978

ENTERING DATE: 8 September 2003

ADDRESS : KOMP. DURIAN MEDITERANIA VILLA A4 BANYUMANIK

NAME : BAMBANG SUPRIHANTO

NIPEG : 7293592K3

TITLE : ENJINER LISTRIK

TTL : SEMARANG, 20 -11-1972

ENTERING DATE: 21 Mei 1993

ADDRESS : JL.NGESREP BARAT III/ 3

NAME : BOWO PRAMONO

NIPEG : 7291007k3

TITLE : SP HMK GU1

TTL : SEMARANG, 23 -05-1972

ENTERING DATE: 14 Desember 1991

ADDRESS : JL.ARYA MUKTI IV/863


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1

Combined Cycle Power PlantMuara Tawar HAPUA Working Group No.1 Generation _ Malaysia 2008

Best Practices Power Plant Operation & Maintenance withImplementation ofGood Corporate Governancebased on

Integration ofAsset Management Risk Management& Integrated Management Systemin Muara Tawar Combined Cycle Power Plant

(The Most Valuable Paper of the Innovation Championshipof PT PLN (Persero) Indonesia 2007

Prepared for:Prepared for:Prepared for:Prepared for:

HAPUA Working Group No. 1 Generation : Knowledge Sharing Workshop on theBest Practices in Open Cycle Gas Turbine, Combined Cycle, Non Coal Fired Thermal

& Internal Combustion Diesel Power PlantKuala Lumpur, Malaysia. 15th 16thJuly 2008

Author:Author:Author:Author:

PURWONO JATI AGUNG, ST, MTOutage Management Supervisor / Engineering Specialist

PT Pembangkitan Jawa BaliMuara Tawar Combined Cycle Power Plant

Bekasi West Java - [email protected]

[email protected]


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2


ACRONYM

EAMS Enterprise Asset Management System

EAF Equivalent Availability Factor

EFOR Electric Forced Outage Rate

BSC Balance Scorecard

ERP Enterprise Resources Planning

FDT Failure Defense Task

FMEA Failure Mode Effect Analysis

FMECA Failure Mode Effect & Criticality Analysis

GCG Good Corporate Governance

GGG Good Generation Governance

ISO 9001:2000 Quality Management System Standard have implemented in the PT PJBMuara Tawar Combined Cycle Power Plant

ISO 14001:2004 Environment Management System Standard have implemented in thePT PJB Muara Tawar Combined Cycle Power Plant

KPA Key Performance Area

KPI Key Performance Indicator

LCC Life Cycle Cost

MPI Maintenance Prioritization Index

OEE Overall Equipment Efectiveness

OH Overhaul

OHSAS 18001:1999

& Permenaker No.

Per.05/Men/1996

Safety & Health Management System Standard have implemented inthe PT PJB Muara Tawar Combined Cycle Power Plant

PT PJB Perseroan Terbatas Pembangkitan Jawa Bali

RCFA Root Cause Failure Analysis

RO Recommended Order

SERP System Equipment Reliability Prioritization

WO Work Order

WPC Work Planning & Control


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3


ABSTRACT

PT Pembangkitan Jawa Bali (PT PJB) is one of the subsidiaries of PT PLN (Persero) with

installed capacity are 6500 MW. Muara Tawar Combined Cycle Power Plant is one of the

generation unit of PT PJB, located on Bekasi, West Java and supply of electricity to the

Jakarta as a strategic region. Muara Tawar Combined Cycle Power Plant consists of 1 block

combined cycle(3 gas turbines & 1 steam turbine) and 1 block opened cycle(2 gas turbines)

with HSD (High Speed Diesel) as primary energy and 950 MW installed capacity. For the

continuous improvement of performance, PT PJB Muara Tawar Combined Cycle Power Plant

implemented the Tata Kelola Unit Pembangkitan Terintegrasi(Integrated Best Power Plant

Governance) based on :

1)

Generation Plan

2)

Asset Management, based on : Reliability Improvement Program, Work Planning and

Control, Supply Chain Management, Efficiency Management, Outage Management, EAMS

(Enterprise Asset Management System) & Energy Management

3)

Balanced Scorecard

4)

Risk Management

5) Quality Management System (QMS), Environmental Management System (EMS) &

Occupational Health & Safety Management System.

6)

Work Culture.

The integrated rule standard of those Best Power Plant Governance are :

1)

Asset management (as reference is Reliability Improvement Program) full integrated with

risk management, especially for physical assets.

2)

Those integration based on Integrated Management System which have been

implemented at PT PJB Mara Tawar Combined Cycle Power Plant before, pursuant to

Quality Management System (QMS) ISO 9001:2000; Environmental Management System

(EMS) ISO 14001:2004; Occupational Health & Safety Management System OHSAS

18001:1999 & Permenaker No. Per.06/Men/1996 (Indonesian Health & Safety

Standard).

3)

The concept in the step 2 above, implemented in analysis tool for Reliability

Improvement Program called FMECA (Failure Mode Effect & Criticality Analysis). This

application produced the engineering recommendation, which if examined using the


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4


integration clause in Integrated Management System will be produced the governance

improvement of:

Operation (efficiency management)

Maintenance (reliability improvement)

Material & tool recommended (supply chain management)

Optimal shutdown / outage for related system, subsystem & equipment (outage

management)

Process supporting :

Safety, health & environment.

Resources (tool, human resources competencies).

All of those improvement must be formulated in the reviewed documentation system of

Integrated Management System.

4) All of the reviewed documentation system is integrated in the EAMS (Enterprise Asset

Management System) for becoming standard job. The standard job is a data base for

create the work order (WO), where the work order is a RISK MITIGATION for related

system, subsystem or equipment. Also, this work order integrated with Risk Web Portal of

Risk PT PJB, so that the progress of risk mitigation can be controlled by online.

All of those process must be measure to ascertain successfully stage compared with thecondition before implementation and according to Key Performance Indicator.

For increase of maturity of the implementation, PT PJB Muara Tawar Combined Cycle Power

Plant specifying continuous improvement program based onprocess business maturity level

assessmentto 10 Key Performance Areas (10 KPAs)for several years (long term planning)

with specific KPI (Key Performance Indicator).

Keywords: Integration, Best Power Plant Governance, Asset Management, Risk Management,

Integrated Management System, Reviewed Documentation System, Implementation,

Measuring, Continuous Improvement.


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5


CHAPTER I

PRELIMINARY

1.1.

Background

1.1.1.

The Dynamic of Power Plant Organization

The hot issues related to the power plant organization:

1.

The 10.0000 MW Indonesian electricity project. For operation &

maintenance, the power plant organization need a management system

based on best practices rules. PT PJB have developed and implemented of a

management system based on Tata Kelola Unit Pembangkitan

Terintegrasi(Integrated Best Power Plant Governance), which can be the

modeled for ideal power plant organization.

2. Management commitment of PT PLN (Persero) (PLN Star 2011), which one of

the program is development of human resources system by implementation

of :

Balance Scorecard(BSC)

Enterprise Resource Planning(ERP) is 100% implemented

Corporate Malcolm Baldridge Score reach 500 scores

The certify of ISO 9001 : 2000 dan ISO 14001 : 2004 for all of Power

Plant /PLN unit.

1.1.2.

The Alignment of Power Plant Management System

Organization maturity profile determined by 4 element spectrums have owned

causality relationship, consists of:

1)

Leadership & People(who does it all)

2)

Methods & Processes(what gets done)

3)

System & Technology(the enablers)

4)

Material & Physical Plants(the results)

To reach the good corporate governance(GCG) with the best performance, PT

PJB (as a corporate) always have done continuous improvement best effort, so

each of 4 element spectrums will be growth to excellence maturity level

gradually.


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In the implementation of management system based on best practices rules in

PT PJB, one of best effort is the implementation of framework of Integrated

Best Power Plant Governance (Tata Kelola Unit Pembangkitan Terintegrasi)

shows on Picture 1.1:

Figure 1.1 Framework of Integrated Best Power Plant Governancein PT Pembangkitan Jawa Bal

PT PJB assumes that the Integrated Best Power Plant Governance is veryimportant, because shareholder and investor consider as most important a good

governance than a good financial performance. A good governance will be

brings in sustainable profit and growth.

Those framework must be implemented by every power plant unit in PT

PJB.

So, to reach a Good Corporate Governance (GCG) with the best power plant

performance, the deployment and implementation of Good Corporate

Governance (GGG) have been done uniqueness & special characteristics,because the alignment to the process conducted by totally integrated, have

never implemented in all of power plant in Indonesia:

1)

PT PJB Muara Tawar CCPP have implemented an Integrated Management

System based on Quality Management System (QMS) ISO 9001:2000;

Environment Management System (EMS) ISO 14001:2004; Occupational

Health & Safety Management System (OHSMS) OHSAS 18001:1999 &


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Permenaker No. Per.06/Men/1996. They are important base to integrate of

framework of Integrated Best Power Plant Governance.

2)

PT PJB Muara Tawar Power Plant have implemented Risk Management

which fully integrated with Reliability Improvementfor physical assets, sothe totally integration process with all of Integrated Best Power Plant

Governancecould be done easily.

1.1.3.

Power Plant Reliability & Power Plant Equipment Efficiency.

Demands of increasing of revenue (OEE = Overall Equipment Effectiveness)

although create aging in the power plant equipment but not conducted the

investment properly (LCC = Life Cycle Cost)

1.2. Target & Goal of Integration of Integrated Best Power Plant Governance.

1.2.1.

Target

To reach of Best Practicesand Good Corporate Governance(GCG) with the best

performance in the power plant management.

1.2.2.Goal

To create of the best & structured documentation system of Integrated

Management System, consists of Company Policy (document level 1),

Procedure (document level 2), Work Instruction (document level 3) andForm(document level 4), so will be achieved:

1)

Live documented to shows the day to day implementation of business

process.

2)

Excellence business process gradually and the best performance

continuously to increase company competitive value.

1.3.

Hypothesis, Scope and Assumptions

1.3.1.

Hypothesis1.

The base of integration are PT PJB Muara Tawar Power Plant have owned &

implemented of Integrated Management Systemsince year 2005, consists of

Quality Management System (QMS) ISO 9001:2000; Environment Management

System (EMS) ISO 14001:2004; Occupational Health & Safety Management

System (OHSMS) OHSAS 18001:1999 & Permenaker No. Per.06/Men/1996.


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2.

The main guidanceto conduct review of documentation system of Integrated

Management System are : Reliability Improvement, Supply Chain

Management, Efficiency Management, Work Planning & Control and

Enterprise Asset Management System (EAMS)3.

The tool for analysis is Failure Mode Effect & Criticality Analysis(FMECA) is

an integration between Failure Mode Effect Analysis (FMEA) & Risk

Management.

4.

The integrated document of Integrated Management Systemare operation

document, maintenance document, engineering document, safety & health

document, environment document, human resources document and

general document.

5.

The concept & implementation of integration is an observation, hard working,and experience from Engineering Team of PT PJB Muara Tawar CCPP

6.

The successfully measurement of this concept conducted by the assessment

mechanism after implementation of this concept, and then compared with

the assessment resultsbefore implementation of this concept.

7. This concept developed by continuous improvement mechanism, so the

implementation must be completeness.

1.3.2.

Scope & Assumption1.

The process of this concept is fully integrated between Integrated

Management System with Risk Management and Asset Management

(Reliability Improvement, Supply Chain Management, Efficiency Management,

Work Planning & Control / WPC and Enterprise Asset Management System /

EAMS) consist of development, implementation, measurement and continuous

improvement.

2.

This concept snap at clauses of QMS ISO 9001:2000, EMS ISO 14001:2004 and

SHMS OHSAS 18001:1999 & Permenaker No. Per.05/Men/1996 whichimplemented in the business process of PT PJB Muara Tawar CCPP.

1.4.

Research Methodology & Paper Structured

1.4.1.Research Methodology

Research methodology of this paper consists of review, optimization and

completeness of the documentation system of Integrated Management System


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(Quality Management System (QMS) ISO 9001:2000; Environment Management

System (EMS) ISO 14001:2004; Occupational Health & Safety Management System

(OHSMS) OHSAS 18001:1999 & Permenaker No. Per.06/Men/1996) with the fully

integrated between Integrated Management Systemwith Risk ManagementandAsset Management, with the stage are:

1.

Compilation and finalization of the concept of Integrated Best Power Plant

Governance, for each business process Operation & Maintenance with

Integrated Management Systemas a integration base, consists of :

Reliability Improvement

Efficiency Management

Supply Chain Management

Work Planning & Control Outage Management

2. Implementation of integration of Asset Management & Risk Management

will be produce the engineering recommendation and descript on the SOP

(Standard Operating Procedure) & Form with the compliance to Integrated

Management System(QMS ISO 9001:2000, EMS ISO 14001 : 2004, SHMS OHSAS

18001:1999 / Permenaker No. Per.05/Men/1996), and later integrated to the

Enterprise Asset Management System (EAMS) (SIT ELLIPS Risk

Management Portal Web ofPT PJB)

3.

Compilation of Corporate Manual (Document Level 1) of PT PJB MuaraTawar CCPP.

4. Go Live the Documentation, socialization and continuous improvement

process.

1.4.2.

Structure of Paper

1. Chapter I. Preliminary

Consists of the background of problem, target and goal, hypothesis, scope and

assumption, and research methodology and structure of paper.2.

Chapter II. Theory Basis

Consists of supporting theory to analyses of the integration concept.

3.

Chapter III. Discussion

Consists of systematic discussion about this paper.

4.

Chapter IV. Measurement of success of the implementation of the Integrated

Best Power Plant Governancein PT PJB Muara Tawar CCPP and Its benefits.


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The description of measurement of successfully implementation of the

Integrated Best Power Plant Governance in PT PJB Muara Tawar Power

Plant and its benefits for non financial aspect (business process improvement)

and financial aspect (Indirect influence)5.

Chapter V. Continuous ImprovementProgram

The description of continuous improvement program for a long term based on

assessment method.

6.

Chapter VI. Summary & Suggestion

Consists of results of implementation of integration concept & followed

suggestion.


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CHAPTER II

THE THORY BASIS

2.1.Work Culture

Work culture is a work behavior change program to support sustainability the

management of improvement program as a change management to integrate the program

of Integrated Best Power Plant Governance become a habit behavior. Work culture

must be implemented in the PJB values are integrity, superiority, cooperation, servicing

and environment aware with the implementation area are:

1)

Discipline & commitment in the implementation of the determining program.

2)

Implemented of daily meeting, weekly meeting and monthly meeting effectively

appropriate the sharedgood practices.

3)

The executor give afeedbackforplanning improvement.

4)

Walk to floorfor a top management (manager & deputy manager).

5)

Briefing before work execution anddebriefingafter work execution.

6)

Knowledge sharing, safety inductionand continuous improvement.

One of the implementation of work culture in the PT PJB Muara Tawar CCPP is

conducted the workshop as a sharing knowledge & capture knowledge in the

development & implementation of the integration concept of Asset Management Risk

Management Integrated Management System, so the recommendation for the

improvement of power plant management have accommodated the experience &

competence from all of personnel in PT PJB Muara Tawar CCPP.

2.2.Integrated Management System

Integrated Management System is a Management System, which integrates all

components of a business into single coherent system, so top management can be

finished all of the activity & organization problems efficiently to enable the achievement

of its purpose & mission and to increase corporate images. The system which integrates

in PT PJB Muara Tawar CCPP consist of Quality Management System (QMS) ISO

9001:2000; Environment Management System (EMS) ISO 14001:2004; Occupational

Health & Safety Management System (OHSMS) OHSAS 18001:1999 & Permenaker No.

Per.06/Men/1996. The meaning of integration is with compliance of clauses QMS ISO

9001:2000 will be resulted the company target to obtain the customer satisfactory, with


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compliance of clauses EMS ISO 14001:2004 will be resulted the company target about

corporate social responsibility/ CSR and with compliance of clauses OHSAS 18001:1999

will be resulted the company target to guarantee safety work environment. Integrated

Management System which implemented in PT PJB Muara Tawar CCPP as a media tointegrates technical program of the Integrated Best Power Plant Governancebecome a

structured document, effective document and simple document so will be facilitate the

understanding of implementation of Integrated Best Power Plant Governance.

2.3.Reliability Improvement

Goal of Reliability improvement program which implemented in PT PJB Muara Tawar

CCPP is to change unplanned maintenancebecomeplanned maintenanceby:

1)

Effectiveness of quality control2) Evaluation of maintenance task(paper work)

3)

Elimination of performance gap

4) Ascertain that the system have governance well by system owner.

5)

Prioritization of the system

6) Modification equipment / system

Those mentioned goal manage by reliability improvement sequence are:

1)

Increasing the results of System Equipment Reliability Prioritization (SERP)mainlyfor equipment have owned Maintenance Prioritization Index (MPI) mainly for

rotating equipment.

2)

Increasing the quantity & quality of Root Cause Failure Analysis (RCFA)with cost

benefit analysis.

3)

Controlling the sequence of reliability improvement with integrated the risk

management by Failure Mode Effect & Criticality Analysis (FMECA). The

recommendation is Failure Defense Task (FDT) for Preventive Maintenance

Improvement & Predictive Maintenance Improvement so will be increase of postmaintenance in work package. For the 1ststep, the priority of FDT is for 1st top %

subsystem in SERP


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2.4.

Risk Management

Implementation of risk management in PT PJB UP Muara Tawar is integrated and

synergized with reliability improvement. Basically from those implementation, so all of

corporate planning related the operation & maintenance conducted based on integrationprincipal of Risk Management and Asset Management. Those integration concept use for

conducted of Financial Worthiness Analysis in the Budgeting Planning.

2.5.

Efficiency Management

The Efficiency Management in the Integrated Best Power Plant Governance consists of

operation management (planning & controlling of operation, production & fuel

management.

2.6.Supply Chain Management

Supply Chain Management is main supporting to increase of maintenance performance

with precise quality, precise quantity, precise time and precise price by:

1)

Understanding of material management is a strategic function and become a main

point in the operation & maintenance business process.

2)

Understanding that the material problem is together responsibility (WPC, Inventory,

Procurement, Owned Estimated Team)

3)

Increase of inventory rule as a center point to increasing of service level :3.1.

Understanding well the catalogue & inventoryrule.

3.2.

Understanding the amount and period of random material using

3.3.

Understanding that amount of material increasingly.

3.4.

Understanding the classification of material.

4)

Create of material management forum to increase of communication between WPC,

Inventory, Procurement, Owned Estimated Team and warehouse.

2.7.

Work Planning & Control (WPC)Work Planning & Controll is work optimization of planning & controlling in the daily

planning, weekly planning and monthly planning to ascertain that all of program have

planned, implemented, conducted, evaluated, controlled and increase based on properly

management. The increase of performance planning conducted by:

1)

Placement of planning to aligning & optimization of maintenance with optimal cost.


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2)

Continuous improvement process in implementation of planning. Maintenance

plannermust be capture all offeed back.

3)

Setting-up of quality control as a integrity part from business process follow the

procedure.4)

Setting up the goal of work planning & control in the maintenance optimization

(maintenance mix, is ratio of unplanned maintenance & planned maintenance,

maintenance efficiency, improvement reliability & improvement availability).

5)

Increase of maintenance mix by improve of meeting & planning effectively in the

Work Order planning consist of : daily planning to manage urgent & emergency work

order; weekly planning to manage the normal work order; and monthly planning to

manage the outages planning.

2.8.Outage Management

Outage management manage two factors that influence EAF (Equivalent Availability

Factors) performance, are overhaul and EFOR (Equivalent Forced Outage Rates), with:

1)

Determining of overhaul execution criteria :

Right problem: the problem who must finished in the overhaul execution must

identified right and clear goal.

Right solution: determine of problem solving conducted appropriate the goal of

project. Right design.

Right implementation.

2)

Key success of outage management.

Historical data completely.

Miles stones of overhaul management frame work fulfilled.

Good coordination between all of function related to overhaul.


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CHAPTER III

DISCUSSION

3.1.

The Corporate Strategy Map of PT Pembangkitan Jawa Bali (PT PJB)

PT Pembangkitan Jawa Bali (PT PJB) established the corporate strategy map that

arrange based on Balance Scorecard (BSC) and constitute cascadefrom corporate vision

& mission. This BSC constitute one of approach using for measure of corporate

performance balanced based on:financial perspective, customer perspective, internal

perspectiveand learning & growth perspective(Attachment 1).

Observe from Internal Perspective in the Attachment 1, the power plant asset

management in the PT PJB determined by 4 element spectrums that owns interactions,

are:

1. Material & Plants Physical Asset (the results)

2.

Methods & Processes (what gets done)

3. System & Technology (the enablers)

4.

Leadership & People (who does it all)

In the frame work of corporate strategic development, PT Pembangkitan Jawa Bali (PT

PJB) spell out those 4 element spectrums become Asset Management(Attachment

2), consists of human asset, physical assetand knowledge assetthat clarify in the

10 Key Performance Area (KPA). The 10 KPAs afterwards spell out become 23 Key

Performance Indicators (23 KPIs).

The summary of those PT PJBgrand corporate strategyshowed on Attachment 3.

3.2. The Framework of PT PJB Integrated Best Power Plant Governance (Tata Kelola

Unit Pembangkitan Terintegrasi)

The framework of PT PJB Integrated Best Power Plant Governance(Tata Kelola Unit

Pembangkitan Terintegrasi)showed on Attachment 4. Basically, PT PJB Integrated

Best Power Plant Governance(Tata Kelola Unit Pembangkitan)is the implementation

of strategy map(Attachment 1) andgrand corporate strategyPT PJB (Attachment

3) in the every management level in power plant unit, where the best integrated

program is very important, because :

1. From the perspective customer, as a one effort to increase of corporate

competitiveness pass through the performance increasing of power plant unit


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continuously. The Integrated Best Power Plant Governance (Tata Kelola Unit

Pembangkitan Terintegrasi) constitute of superiority competitiveness of PT PJB

that must be understanding by all of employee of PT PJB, together implemented,

evaluated and updated continuously until become a work culture of PT PJB.2.

From the internal perspective and learning & growth perspective, the best

integrated program be needed in order to every function in management level

understand to each role and responsibility to support reach of the goal of power

plant management. Besides that, to directed every function in management level

focus to the its Key Performance Indicator (KPI) and give understanding that

every function in management level owned together goal. Internal process business

and learning & growth perspective well will be more certain that PT PJB, especially

Muara Tawar CCPP had managing with best practices manner.3. The financial perspective is very important because will be yielding profit & growth

sustainable.

The definition of Integrated Best Power Plant Governancestandard shows on Chapter

II, Theory Basis. The characteristic of nine programs is inseparable and codependent.

3.3.

The Implementation of Integrated Best Power Plant Governance (Integration of

Integrated Management System Asset Management Risk Management) As a

Uniqueness & Special Characteristics Implementation in PT PJB Muara Tawar CCPP.The implementation of Integrated Best Power Plant Governance in PT PJB Muara

Tawar CCPP is uniqueness and exclusive because fully integrated between Asset

Management and Risk Management, based on clauses of Integrated Management

Systemhave implemented in PT PJB Muara Tawar CCPP (based on Quality Management

System / QMS ISO 9001:2000; Environment Management System / EMS ISO 14001:2004;

Occupational Health & Safety Management System / OHSMS OHSAS 18001:1999 &

Permenaker No. Per.06/Men/1996) as a Integration basic.

The concept of integration between Asset Management and Risk Management shows onAttachment 5. While integrated business process of PT PJB Muara Tawar Power Plant

based on integrated of Integrated Management System Asset Management Risk

Managementshows on Attachment 6.

The condition of integrated of Integrated Management System Asset Management

Risk Management are:


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1. Reliability Improvement in the Asset Management that officially stamped as a

part of Integrated Best Power Plant Governance, synergized with Risk

Management (refer to Risk Management Policy of PT PJB). This parameter that

choice because reliability improvementemphasize at physical asset management,where physical asset commonly clearly, easily and measurable in the risk

mitigation. This is could be done because between Asset Managementespecially

for Reliability Improvement with Risk Management owned equivalent in the

physical asset management so the implementation can be synergized. The

equivalent between Asset Management especially for Reliability Improvement

with Risk Management showed on Attachment 5. While the role of Integrated

Management Systemhad implemented in the PT PJB Muara Tawar CCPP (based on

Quality Management System / QMS ISO 9001:2000; Environment ManagementSystem / EMS ISO 14001:2004; Occupational Health & Safety Management System /

OHSMS OHSAS 18001:1999 & Permenaker No. Per.06/Men/1996) is a tool to

implemented the synergized of Asset Management especially for Reliability

Improvement with Risk Management in the formed improvement / review

Corporate Manual (Document Level 1), Procedure (Document Level 2), SOP /

Standard Operating Procedure (Document Level 3) and Form (Document Level -

4), until formed the cycle of Plan Do Check Action. The application of

synergized of Asset Management / Reliability Improvement with RiskManagement examined by integrated clauses of Integrated Management System,

until will be produce the improvement well. The easy scheme of those process

showed on Picture 3.1.

Otherwise, Integrated Management System constitute of important basis to

integrate the Integrated Best Power Plant Governance (Tata Kelola Unit

Pembangkitan Terintegrasi). The totally concept of Integrated Management

System Asset Management Risk Managementshowed on Attachment 7.

2.

The concept of those integration implemented in the tool which common use for inthe Reliability Improvement analysis is FMEA (Failure Mode Effect Analysis).

Because synergized with Risk Management, FMEA modified become FMECA (Failure

Mode Effect & Criticality Analysis), where the failure level of the equipment /

physical asset appropriate its history analyzed based on quantitative & qualitative

principle, consequences failure & likelihood failure, until can be prioritized in risk


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mitigation. The example process of FMECA as a implementation / deployment

showed on Attachment 8.

Picture 3.1Simple Scheme of Best Integrated Power Plant Governance (Integration of IntegratedManagement System Asset Management Risk Management)


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FMECA will be produce engineering recommendation, if examined with integration

clauses at Integrated Management System will be produce improvement of :

Operation Management (Efficiency Management)

Maintenance Management (Reliability Management)Those improvement clarified on integrated & reviewed document, consist of :

1.

Document level 1 : Corporate Manual (Document level 1)

2.

Document level 2 : Operation Procedure, Maintenance Procedure, Safety

Procedure, Environmental Procedure, Laboratory Procedure, General Affair

Procedure

3.

Document level 3 : Operation Work instruction, Maintenance Work

Instruction, Safety Work Instruction, Environmental Work Instruction,

Laboratory Work Instruction, General Affair Work Instruction.4. Document level 3 : Operation Form, Maintenance Form, Safety Form,

Environmental Form, Laboratory Form, General Affair Form.

Otherwise, from the concept of Best Integration Power Plant Governance,

engineering recommendation also cover material needed, tool needed, Safety

Equipment (Basis of mapping of Supply Chain Management), human resources

needed and its competence. While from the time interval and work duration

recommended in the work instruction will be know optimal time to shutdown

(outage) for system / subsystem / equipment related (Basis of mapping of OutageManagement).

3.

Those integrated & reviewed work instruction afterward synergized to Enterprise

Asset Management System (EAMS) had implemented in PT PJB become standard

job. The standard job constitute a data base to create work order which constitute

risk management for system / subsystem / equipment related. The work order also

integrated to PT PJB risk web portal, until the progress of risk mitigation to

system / subsystem / equipment can be online monitored. Risk mitigation by PTPJB risk web portal showed on Attachment 9.


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CHAPTER IV

THE SUCCESSFULLY MEASUREMENT OF IMPLEMENTATION OF

INTEGRATED BEST POWER PLANT GOVERNANCE IN

PT PJB MUARA TAWAR POWER PLANT & ITS BENEFIT

The stage of implementation of best integrated power plant governance in PT PJB Muara

Tawar Power Plant shows on Attachment 10. The successfully of implementation of

integration process measured by 3 parameters, where the three of those parameter examined

by Balanced Scorecard (BSC) perspective, are :

1)

Business process : Maturity levelfor every Key Performance Area(KPA)

2)

The performance goal / KPI (Key Performance Indicator) :

2.1.

OEE = Overall Equipment Effectiveness

2.2.

EAF = Equivalent Availability Factor

2.3.

Maintenance Mix / Tactical Maintenance (ratio of unplanned and planned,

maintenance efficiencyand improvement reliability & availability)

3)

Quantity & quality the document of integrated & reviewed Integrated Management

System.

4.1.

Business process :Maturity levelfor every Key Performance Area(KPA)

No BeforeImplementation AfterImplementation

1 Observation : End of year 2005 end of

year 2006

Observation : January June 2007

2 Measurement of baseline by

assessment for 10 Key Performance

Areas (KPAs) by interview with all of

function in PT PJB Muara Tawar CCPP

Main point of maturity level dan Key

Performance Area (KPA) which

observed remain 10 KPAs, but more

sharpened conducted measurement at

area of enabling a number of 19

practical areas. The results of

assessment for maturity levelin April

2007 shows on Attachment 12.


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No BeforeImplementation AfterImplementation

3 Thought most of all KPI (Key

Performance Indicator) reached, but

PT PJB Muara Tawar CCPP not yetimplemented the business process

based on best practices, shows on

Attachment 11

All of area in KPI (Key Performance

Indicator) showing improve when

compared to baseline. The concept ofintegration bringing the change of the

way of work in every management

level in PT PJB Muara Tawar CCPP

shows on Attachment 13

Determine of the maturity level as a

performance contract for management

level in power plant unit.

4.2.

Performance Goal / KPI (Key Performance Indicator)

The goal of implementation of asset management integrated with Integrated

Management System & Risk Management in PT PJB Muara Tawar Power Plant is to

increase of asset contribution, showed on Picture 4.1:

Picture 4.1 Simple Scheme the Influence of Asset Management to Increase of Asset

Contribution.

Asset contribution shows that an asset can be give optimal revenue & optimal cost,

with considered a long term issues related rational optimum lifecycle cost.

Asset contribution for power plant equipment can be optimalized with increase of

Overall Equipment Effectiveness (OEE) and decrease of LCC (Life Cycle Cost) without

big investment, showed on Picture 4.2, Picture 4.3 & Picture 4.4 :


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Picture 4.2 Simple Scheme of Influence of Best Integrated Power Plant Governance(Integrated Management System Asset Management Risk Management) to Increase of

Power Plant Asset Contribution

Picture 4.3 Indirect Influence to Increase of EAF (Equivalent Availability Factor) andDecrease of EFOR (Electric Forced Outage Rate) by Implementation of Best Integrated

Power Plant Governance.


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Picture 4.4 Cost & Revenue of PT PJB Muara Tawar CC Power Plant that Shows Indirect Successfullyof Implementation of Best Integrated Power Plant Governance)

(Disesuaikan Dengan Skema OEE LCC Gambar 4.2)

4.3.

Amount the Document of Integrated & Reviewed of Integrated Management System.

If compare with the condition before implementation, amount the document of

Integrated Management System significantly increase that shows the improvement of

maintenance stream (reliability) and operation stream (efficiency) implemented

according to the integration concept.

4.4. Benefit of Integration

The benefit of concept of Best Integrated Power Plant Governance can be know from

the evaluation Balanced Scorecard (BSC), which affirm that the successful of those

concept will be felt on a long term and influenced by many activities in a managerial

process.

4.4.1.

Financial Perspective

Produce the sustainable profit & growth because the business process

developed and implemented truly, always measurable and specified the

continuous improvement program to guarantying reaching of KPI

Increasing of earnings have the character of normative, cause of many

factor, among other the asset management well (sustainable character).

4.4.2.

Customer Perspective


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Guaranty stakeholder & shareholder that the run of integration of Best

Power Plant Governance, hence the Operation & Maintenance process for

electricity industry have been done accomplishment to Integrated

Management System. The continuous improvement process can be done easily, so that process to

reach best practices corporate & good corporate governance will be easily &

quickly.

Internal Perspective

Facilitating the improvement of power plant asset management for

operation, maintenance, safety & health,

Facilitating the improvement of management of physical assets for

operation; maintenance; safety, health, environment & laboratory; supplychain management and human resources.

Minimization of Paperworkfor the document of company asset management

so that will facilitate in the business process controlling / audit (The cycle

of Plan Do Check Action).

Assurance company perspective (claim probability) which have wide of

impact if the company intend to conduct of go public (initial public offering

/ IPO) (Profit Probability). Assurance premium value of PT PJB Muara Tawar

CCPP continuing decreased in the period of 2005 2007, which show thetrust of stakeholder to business process of PT PJB Muara Tawar CCPP.

4.4.3.Learning & Growth Perspective

The concept of integration forcing each individual releasing its tacit

knowledge become tangible outcomes. This tacit knowledge shows thevaluable experience during involving in the Power Plant Operation &

Maintenance business process. The integration placing its process and

workshop as a medium.

Preventing the drain knowledge. Important base for work culture

development.


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CHAPTER V

CONTINUOUS IMPROVEMENTPROGRAM

Integrated Best Power Plant Governance which implemented fully integrated based on

Integrated Management System Asset Management Risk Management and conducted

consistently expected will be produced sustainable gain & growth. So, must be create of

continuous improvement program in a long term, as a shape of clear performance goal which

cover of performance continuous potential, improvement of intern business process capability

and cycle of Plan Do Check Act.

Continuous improvement program related to Integrated Best Power Plant Governance are :

1.

Determining of a long term performance goal for Integrated Best Power Plant Governance

based on measurement of maturity level for 10 pillars asset management. The assessment

do every month and increasing of determined target based on consensus between auditee

and assessment auditor (become framework maturity level with agreed target.

Based on this measurement will be know existing position and improvement direction. The

measurement based on assessment model which become guidance for improvement of

business process maturity in the integration process of Integrated Best Power Plant

Governance. With the good maturity level will be produced the best target level / Key

Performance Indicator (KPI) gradually can be increasing continuously (Best Practices

Concept), shows on Picture 5.1 :

Picture 5.1 : KPI (Key Performance Indicator) vs Maturity Level


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The measurement to performance target of Integrated Best Power Plant Governance based

on integration of Integrated Management System Asset Management Risk Management,

PT PJB Muara Tawar CCPP have determined the maturity level until year of 2011 with the

work program as a continuous improvement.The measured results for :

1.

Knowing the work maturity (enabling area) of physical assets management appropriate

framework of Integrated Best Power Plant Governance based on integration of

Integrated Management System Asset Management Risk Management.

2. Guidance for understanding

2. The integration process lather implemented on planning of Budgeting Planning based on

Risk Management. The grand strategy of planning shows on Attachment 14.


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CHAPTER V

CONCLUSION & SUGGESTION

5.1.

Conclusion

1) The program of Integrated Best Power Plant Governance determined by PT PJB is a

framework for implemented of strategy map & grand corporate strategy until to

every management level in power plant unit and this is a PT PJB competitive

program.

2) The implemented of Integration of Asset Management and Risk Management in the

system of Integrated Best Power Plant Governance produced the sharp engineering

recommendation related to improvement of physical asset management. The

choice factor analyzed in the FMECA (Failure Mode & Effect Analysis) is very

important to determine of the sharpening of recommendation. In this case, the

recorded asset history become the basis needed.

3)

Implementation of Integrated Management System (based on Quality Management

System / QMS ISO 9001:2000; Environment Management System / EMS ISO

14001:2004; Occupational Health & Safety Management System / OHSMS OHSAS

18001:1999 & Permenaker No. Per.06/Men/1996) is a very important & valuable

based modal to integration process of Integrated Best Power Plant Governance

(asset Management & Risk Management).

4)

To know the successful level of implementation of Integrated Best Power Plant

Governance must be conducted the measurement with the precise method. To

improve of implemented maturity, must be determined the continuous

improvement program.

5.2.

Suggestion

1. The successfully of implementation of integration of Integrated Best Power Plant

Governance need a strong commitment management and must be support by all of

personnel related to power plant operation & maintenance business process.

2.

The method of integration based on Integrated Management System Asset

Management Risk Management developed by PT PJB Muara Tawar CCPP can be the

modeled for ideal power plant organization.


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REFFERENCE

1. Hammer, Willie; Occupational Safety Management and Engineering, Prentice Hall,

Englewood Cliffs, New Jersey 07632, 1989

2. Peraturan Menteri Tenaga Kerja Republik Indonesia Nomor : Per.05/Men/1996 TentangSistem Manajemen Keselamatan dan Kesehatan Kerja

3. Tine Herreborg Jorgensen, Marie Dolores Mellado, Arne Remmen; IntegratedManagement Systems, Department of Development and Planning Aalborg University,Fibigerstraede, Denmark, November 2004

4. Ruly Firmansyah; Laporan On The Job Training (OJT) di PT Pembangkitan Jawa Bali

Unit pembangkitan Muara Tawar 15 January - 15 Mei 2007; International PlantManager Training And Development Program2007.

5.

Tom Lenahan, Turnaround Management; Butterworth Heineman, Oxford 1999

6. Materi - Materi Presentasi untuk Raker (Rapat Kerja) PT PJB, Forum Komunikasi Teknik,

Presentasi Manajemen aset dan Manajemen Risiko.

7. Direktur SDM & Organisasi PT PLN (Persero); Knowledge Management Untuk Mengatasi

Knowledge Drain Menuju Learning Organization, Round Table Knowledge ManagementIndnesia XII 2007

8.

Robert S Kaplan, David P Norton, Strategy Maps : Converting Intangible assets into

Tangible Outcomes, Harvard Bussiness School Publishing Corporations, USA, 2004.

9.

John Mobry, Reliability Centered Maintenance RCM II, Industrial Press USA, SecondEdition, 1997.

10.

Benjamin S Blanchard, Dinesh Verma, Elmer L Peterson, Maintainability : A Key toEffective Serviceability & Maintenance Management, John Willey & Sons, Inc, Canada,1995.

11.

John Dixon Campbell, Uptime : Strategies for Excellence in Maintenance Management,Productivity Press, New York, 1995.

12.

Edward H Frazelle Ph.D, Supply Chain Management, Mc Graw Hill USA, 2002.


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ATTACHMENT 1

STRATEGY MAP of PT PEMBANGKITAN JAWA BALI(Reference : Corporate Strategy Map PT PJB)


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ATTACHMENT 2

ASSET MANAGEMENT of PT PEMBANGKITAN JAWA BALI (PT PJB)(Reference: Corporate Strategy Map PT PJB)


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ATTACHMENT 3

Corporate Strategy Map of PT PJB

(Reference: Corporate Strategy Map PT PJB)

1. Key Performance Indicator / KPI :

1)

Maximum ROE / ROA

2)

Restructure Modal

3)

Decrease cost

4)

Growth Revenue

5)

Expand Capacity

6)

Improve Sales

7)

Pricing

8)

Quality

9) Public Image

10)

Increase Asset Contribution (Core & Non Core)

11)Project & OM Management

12)

Asset Availability, Reliability & Maintainability


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13)

Plant Efficiency

14)Supply Chain Fuel, Material & Water

15)

SHE Management

16)

Best Practices & Inovation17)

Life Cycle Cost Management

18)

Human Capital

19)

Information Capital

20)

Organization Capital

21)Skill & Knowledge Improvement

22)

Communication Plan

23)Work Culture & Leadership


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ATTACHMENT 4

Tata Kelola Unit Pembangkitan Terintegrasi

(Integrated Best Power Plant Governance)

PT PEMBANGKITAN JAWA BALI

Tata Kelola Unit Pembangkitan (Integrated Best Power Plant Governance) is

implemented of corporate strategy map of PT PJB for every management level in

power plant unit.


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ATTACHMENT 5

BASIC CONCEPT of INTEGRATION of

ASSET MANAGEMENT / RELIABILITY IMPROVEMENT

with RISK MANAGEMENT AT PT PJB MUARA TAWAR CCPP

(Developed by Engineering Team of PT PJB Muara Tawar CCPP)

1. Reliability Improvement (Reference : Grand Corporate Strategy PT PJB)


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2.

Grand Planning


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3.

Capture History : Application at PT PJB Muara Tawar CCPP

4.

Strategy : Application at PT PJB Muara Tawar CCPP


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5.

Plan : Application at PT PJB Muara Tawar CCPP

6. Do : Application at PT PJB Muara Tawar CCPP


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7.

Check, Action & Continuous Improvement : Application at PT PJB Muara Tawar CCPP


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ATTACHMENT 6

INTEGRATION of BUSSNIESS PROCESS of PJB MUARA TAWAR CCPP

BASED ON INTEGRATED MANAGEMENT SYSTEM

ASSET MANAGEMENT RISK MANAGEMENT

(Developed by Engineering Team of PT PJB Muara Tawar CCPP)


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ATTACHMENT 7A

STAGE OF INTEGRATION CONCEPT OF

INTEGRATED MANAGEMENT SYSTEM ASSET MANAGEMENT RISK

MANAGEMENT


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ATTACHMENT 7B

THE INFRASTUCTURE OF INTEGRATION CONCEPT OF

INTEGRATED MANAGEMENT SYSTEM ASSET MANAGEMENT RISK

MANAGEMENT


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ATTACHMENT 8

RISK MITIGATION OF HOT GAS PATH PARTS OF GAS TURBINE

(CASE STUDY OF RISK MANAGEMENT)


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ATTACHMENT 9

UPLOAD THE REVIEWED INTEGRATED MANAGEMENT SYSTEM DOCUMENT

INTEGRATED TO EAMS & RISK MANAGEMENT PORTAL WEB PT PJB

1. Standard Job


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2.

Standard Job : Material Requirement

3.

Standard Job : Resource Requirements


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4.

Standard Job : Task & Job instruction

5. Standard Job : Work Order


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6. Standard Job : Work Order

7.

LINK www.mr.pjb2.com


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ATTACHMENT 10

Stage of Implementation of

Integrated Best Power Plant Governance


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ATTACHMENT 11

RESULTS OF BUSINESS PROCESS ASSESSMENT

PT PEMBANGKITAN JAWA BALI

BEFORE IMPLEMENTATION OF INTEGRATED BEST POWER PLANT GOVERNANCE

(January 2006)

Maturity MatrixBusiness Processes / KPI

PT PJB UP Muara Tawar, January 2006

Condition of business process ofPT PJB Muara Tawar CCPP (16th

January 2006). Not yetimplemented business process

properly

Expected condition for next 12-18 months at the position of 4-

4 (World Class)


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Assessmentconducted in period November 2005 January 2006 to 10 Key Performance Areas

(KPA), are :

1. Management Strategy

This is a new activity at Muara Tawar, where the strategy map has been successfully

completed. Outstanding actions are to :

Finalise the map

Communicate content & intent through the plant

Complete designation of owners

Owners to complete action tables & KPIs

Strategy execution needs at least weekly review by owners and monthly review by the

management team. In this review progress needs to be reviewed, KPIs analysed &

performance barriers identified & removed. Strategy execution progress also needs tobe reported back to Head Office monthly.

Suggest running strategy execution skills workshop at Muara Tawar; or attend next

course.

Communication and visibility actions across the organisation should follow these review

sessions.


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An owner for MOP (and WP & C) needs to be clearly identified and appointed. Owner

for MOP needs deputy manager authority.

MT needs to become more KPI orientated in its management style. This will involve:

Defining local required KPIs (and goals)

Develop a management culture which uses KPIs as an accountability methodology

and tool.

2.

Reliability Management

Completed criticality analysis

Need to develop understanding and implementation capabilities for remaining FDP

tasks:

FMEA

Task Execution Need to develop and implement PDM business process.

Implement RBMware

Develop tribology solution to PDM

Recommend running the MOP skills training course at MT alternatively key personnel

attend course.


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3.

Work Planning and Control

There is the great opportunity to progress from level 2 to level 4 in WP& C in the short

term (breakthrough) this will however take a very carefully managed execution of the

new business processes.

In order to accelerate implementation of the business processes it is recommended

that MT receives some coaching and support from a MOP technical expert. The WP&C Business Process needs to be formally announced as the main business

process for PJB. This will avoid confusion and help improve the implementation.

(performance barrier)

The planners have never received formal planning or scheduling training. This needs to

be arranged. (performance barrier)

There is emerging visibility in the planning office. However, to support the needs,

more effort is required to be focussed on visibility management. Visibility requires a

strategy and an owner and KPIs.


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4.

Performance Management

Muara Tawar have achieved great results with minimal support.

Have developed their own skills and competencies, together with their own

performance model developed in Excel.

Have been using the result of the performance model to provide input for further

maintenance action

Team realizes the limited capability of excel, and establishing a proper performancemonitoring system using Gate Cycle modeling would be a good investment in the long

run

Based on the MT Teams achievement so far, investing in Gate Cycle and GC Training

would be provide a significant improvement in MTs performance monitoring capability


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5.

Organisational Alignment

The engineering department has not been formally constituted due to Head Office

issues (performance barrier)

The individual functions within the organisational structure need to be aligned with the

new responsibilities associated with MOP this is again an issue which requires

coordinatio

Documents

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