Magnolia
Building a self-managed operations model aligned with long-term asset performance
Problem
In the development of Kindle's Magnolia project, it was desired to implement an operations philosophy tied directly to the asset focused on meeting the needs of our customer while ensuring that we did not compromise on our strong operations philosophy. Recognizing that this project would be Kindle's first development initiative we desired to have the operations fully vested in the overall operations success of the project.
After many years of working with third-party O&M providers it has been noted that there are difficulties in the following areas:
Lack of accountability/ownership
Misaligned goals
Redundancy in reporting
It is difficult to implement new programs due to multiple approvals and buy in needed
Solution
After evaluating the options of third-party O&M provider vs Self-Manage workforce it was decided that Magnolia would stand up its own operating company under Magnolia Management Company to self-manage operation of the facility.
Kindle challenged its Operations teams to put together a plan to:
Source and hire highly skilled operations employees to staff the facility
Develop a fully vetted O&M budget covering both pre- and post-COD spend
Maintain the original economics of the project
Develop safety and environmental programs to protect employees and plant equipment
Develop a comprehensive operator training program
Develop comprehensive equipment preventative maintenance program
Develop startup and shutdown procedures for each system
Impact
Power Supply
Magnolia
Magnolia Power established a self-managed O&M platform focused around safety, environmental stewardship, and operational excellence. The self-managed O&M concept addresses the challenges and provides to following advantages over use of third-party operators.
Complete alignment of owner and operators
Preservation of staff in event of asset sell-down
Establishment of standard operating programs, transferable across other fleets: Safety, High Energy Piping, Gas Pipeline Safety, Conduct of Operations, Outage & Budget Management, and Operational Risk Management
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