How to Make Problem Customers an Asset

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How to Make Problem Customers an Asset

• Howard Railton
• Manager of LASU Projects and Construction
• Air Products-Europe

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Isle of Grain UK
Moscow
Tongxiang China
Gent Belgium
Posco Korea
Yanbu KSA
Qatar GTL
Hazira India
MIGP Thailand
Chevron Nigeria
Mopani Zambia
Locations of AP Europe Projects
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What Am I going to Cover?

• Overview of the development of business
• Creating Opportunities and Success
• The Customer
• The scope and the contract
• Things to Address
• Continuous Responsibility

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Where are our Businesses going?

• Globalisation of Western business
• Need to work in new and unfamiliar locations
• Significant volumes of business with limited
  resources to execute the work
• Culturally and geographically diverse customers
• Widely varying expectations of safety and
  security

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Creating Opportunity and Success

• Process must start with the bid
• What is done must be joined up
• Must calibrate the customer
• Must calibrate the scope

Understanding with objectives and alignment
leading to suitable procedures backed by
appropriate Terms and Conditions
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The Customer how do you see him

• Different levels of experience
• Issue of loss of face
• Issues with empowerment
• Different cultural approach to safety and
  execution
• Geographic differences

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Types of Customer

• Client A Well developed safety process and
  committed to safety at all levels.

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Types of Customer

• Client B
• The most worrying type. Has the systems and
  procedures but not real commitment.
• A danger to himself

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Types of Customer

• Client C
• The easiest to recognise.
• Money spent on safety is a waste and accidents
  happen
• Obi-Wan Kenobai only you can save us.

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Types of Customer

• Client D
• The best chance of making a useful difference
• Open to ideas, committed to safety and willing
  to learn
• Often confused with Client B

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Calibrating the Scope

• Risk profile will be driven by scope
• Division of responsibility with the Customer
• Complexity of the collaboration
• Scope Division
• Turnkey Lowest complexity
• Part Turnkey Increasing Complexity
• Collaborate all project Increasing complexity
• Collaborate part of project Highest complexity

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Reliance on Traffic Lights May be Inappropriate
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Scope Options and Contracts (cont)

• Negotiating the Contract
• An opportunity to address process safety
• Need for a realistic execution strategy
• Thoroughly understood by both parties and
  recorded in the project procedures and standards
• Attention to detail and clarification
• Assuming what a Customer means when he is from a
  different country is very dangerous

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Opportunities for Success

• Opportunity to shape the Customers safety
  thinking
• Mutual Critical Success Factors
• Project Safety Plan
• Further alignment of the two organisations safety
  aspirations
• Provision of services and advice to the Customer

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Things to Address

• Contract Terms and Conditions
• Alignment of the sales, Project Development and
  Project Management specialists
• Specific issues
• What can the Client instruct you to do
• Can you withdraw people from site if it is unsafe
• The impact of security and Force Majeure
• Can the Client over-ride design decisions
• What happens if you cannot agree
• Does the Client have the right to approve
  suppliers or materials
• How do you handle changes. Can the Client insist
  on changes.

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Things to Address

• Project Procedures
• The schedule must allow a reasonable period
• The Safety Work Permit process
• Participation in the Hazard Review Process
• Breaks in the chain of responsibility
• Checking the Clients design and construction
• How will handover between Construction,
  Commissioning and Operations be controlled?

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Continuous Responsibility
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Conclusions

• Our Businesses require us more and more to be
  able to execute Globally in all regions
• We want the highest standards of safety
• We need to work as a Team in a coordinated way
  with our Customers, recognising our mutual
  skills and weaknesses to achieve this

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Thank you
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