Refinery Turnaround

Volume 10 Issue 1 • Winter 2005
An
Perspective On Quality
Refinery Turnaround
Editorial
Tom Isonhood
Happy New Year!
QUALITY POLICY
Dear Readers,
Product Quality is our basic
The holidays and year’s end mark a time for gathering with
family and friends. For many, the beginning of a year brings the
setting of goals and new resolutions. It also marks a time to
reflect upon the past year. In thinking over the year 2004, one
of the first thoughts is of the many changes and achievements
experienced by the Systems & Performance Improvement
Department. These changes and achievements include SPID
assisting with the restructuring of the Quality Council and adding new employees.
business strategy. It is our policy to
provide products and services of
the highest quality level,which will
result in satisfied customers. Only
100% conformance to customer
requirements will be acceptable.
We will accomplish our goal
through actively involving and
training our employees, obtaining
Ashley Bryant, David Wigginton and Charlie Bennett were welcomed to the SPID
team. Ashley joined us in September, 2004 as the Systems Controller and manages
the corporate document control program. David Wigginton joined Ergon in January,
2004 as a Performance Engineer and works with data and statistics to assist
companies with their quality programs. Most recently, Charlie Bennett joined SPID
as Management Systems Consultant. Charlie coordinates the overall implementation
process of management systems within the Ergon family of companies. The SPID staff
is one of our greatest resources and an integral part of Ergon’s success. Each person
strengthens our department and plays a vital role in helping us reach our goals. We
are truly fortunate to have such capable employees on our team.
commitment from our suppliers,
conforming
to
appropriate
standards and establishing and
monitoring objectives. Application
of these activities will lead to
the continual improvement of
everything we do.
Leslie B. Lampton, CEO
SPID has also benefited from many former employees. Special thanks are due Mike
Burnett for his past and ongoing contributions to Ergon quality systems. Even after
leaving our department to manage the Petroleum Specialties Marketing Department,
Mike continued as editor of the FOCUS publication. Thanks are also in order for Ricky
Allen’s continuing support to our department. Ricky teaches quality management
system classes and participates in Ergon’s internal audit team. Amy Taylor is to be
recognized for her contributions to our department and for being a valuable part
of the quality team. Amy left Ergon in October 2004 to join her husband, Brad, in
Reading, Pennsylvania where he transferred with the Penske Corporation. I also need
to take this opportunity to express my sincere appreciation to Ergon managers for
allowing their employees to participate in Ergon’s internal auditor program. These
men and women take on additional responsibilities as internal auditors without extra
compensation because of their commitment to Ergon’s quality system. The success of
our internal audit program depends on the generosity of these employees and their
managers.
This new year brings about many challenges for SPID: continuation of the ongoing
ISO 9001:2000 implementation processes for Ergon companies; ISO/TS 16949
compliance at Ergon Technical Coatings; new ISO implementation work at Lion Oil
Trading & Transportation; implementation of a supervisor/management training
program; and putting into operation an electronic document control system for select
Ergon companies. This year, Ergon’s leadership will continue to develop, implement,
and improve the effectiveness of its quality management system. Our quality
management system, based on ISO 9001, is versatile enough to be used for all types
continued on page 4
is published twice yearly by
Ergon’s
Systems & Performance
Improvement Dept.
Please send any correspondence to:
Kathryn Steen
Ergon Systems & Performance
Improvement Dept.
PO Box 1639
Jackson, MS 39215-1639
Fax: (601) 933-3370
E-mail: [email protected]
Visit
web site
www.ergon.com
S&PID
would like to thank everyone who
participated in this issue of
We welcome and encourage your
comments and questions regarding
this publication.
Please use our new website survey
at www.ergon.com/surveys.
2
Ergon Trucking Wins Again and Again
David Purvis
Ergon Trucking, Inc. has distinguished
itself for years by winning awards for
excellence, safety and top performance in
its class. Its record and legacy continue to
grow with more acknowledgements in the
industry for safety, reliability and service.
Please stop by Ergon Corporate offices,
Building B, 1st Floor of Mirror Lake
Plaza, 2829 Lakeland Drive, Jackson,
Mississippi to see the newest additions
to Ergon Trucking’s “Wall of Honors” and
congratulate the ETK team! Recently
awarded are the following:
•
2003 Safety Improvement Award
Selected by the National Tank Truck Carriers, Inc. (NTTC) for maintaining a continuous record of improved safety in the operation of tank motor vehicles. This is the 6th Award of this category by NTTC to Ergon.
•
2003 Competitive Safety Grand Award
Selected by the National Tank Truck Carriers, Inc. (NTTC) of Trucking Class 14 million – 18.3 million miles, in recognition of outstanding safety record.
•
•ConocoPhillips Service and Excellence Awards
ConocoPhillips has awarded multiple and consecutive distinctions for excellence to Ergon Trucking, Inc. The awards they bestow are considered the top awards in the nation for bulk carriers. ConocoPhilips selects companies among four divisions of carriers based on product type.
Modern Bulk Transporter: July 2003
An article featuring Ergon Trucking, Inc., Page 20 – 25: “Ergon Trucking uses Diversification to Drive Successful Company Operation”: http://www.findarticles.com/p/articles/mi-
mocx/is_1_66/ai_106087260
• Outstanding Fleet Safety Record: 2nd Place, 2003
Selected by the Mississippi Trucking Association (MTA) for outstanding safety performance, over 2 million miles.
• Outstanding Fleet Safety Record: 1st Place, 2002
Selected by the Mississippi Trucking Association (MTA) for outstanding safety performance, over 2 million miles.
ConocoPhillips awarded their top annual Division Awards in
recognition of the following characteristics of Ergon Trucking, Inc.:
1) It is an organization that has aligned its operating business to achieve the “ultimate in Product Delivery Service”.
2) It is a company that consistently exceeds expectations along the entire product distribution chain.
3) It is a business partnership that defines the true meaning of “Win – Win”.
•
•Superior Service Award and Certificate of Achievement:
May 8, 2003,
•Operational Excellence Award:
November 3, 2004
•Service Award for Lubricants & Specialty Products:
November 3, 2004
3
Personal Safety Award: 2002
Selected by the National Tank Truck Carriers, Inc. (NTTC) of Trucking Class 13.5 million – 18 million miles, in recognition of outstanding safety record by entire Ergon Trucking, Inc. organization and personnel.
Perspective
Lee Lampton
I read a story about a Scottish athlete in the 19th
century who decided to enter a discus throwing
competition. He made an iron discus based
on a description he read in a book. What he
didn’t know was that the discus used in official
competition was made of wood with only
an outer rim of iron. His was solid metal and
weighed three or four times more than those
being used by other discus throwers.
When he arrived at the games, he was handed the official
discus. He easily set a new record, a distance far beyond those
of his competitors. This man trained under a heavy burden and
became better for it.
I just finished reading the final report from the National
Transportation Safety Board (NTSB) relating to the I-40 accidents
in May 2002. This was one of those heavy burdens that a
number of people had to deal with over the last 21⁄2 years. The
tragic loss of life will never be forgotten.
According to the author, the man
marked out the record distance in
a field near his home and trained
day and night to match it. For
years he labored until he could
break the record. Then he took his
iron discus to England for his first
competition.
There is no question in my mind that the Quality Program we
put in place in the mid- 90’s was the main reason our company
was able to weather - such a major crisis. The training we go
through daily to improve our program is invaluable.
Our burdens can make us a better company if we understand
their purpose.
ASQ Certificates
Congratulations to three employees of Ergon Systems & Performance Improvement Department for recent certifications with the
American Society for Quality:
• David Wigginton, Performance Engineer
• Kathryn Steen, Performance Specialist
• Ashley Bryant, Systems Coordinator
Certified Quality Engineer
Certified Quality Auditor
Certified Quality Improvement Associate
Editorial continued from page 2
and sizes of businesses, as evidenced by the variety of Ergon
companies, and departments, registered or compliant to the
standard. Companies can achieve maximum benefit from their
registration or compliance certificate by ensuring their quality
management system is aligned with their strategic goals. This
alignment helps satisfy the full intent of the standard as well as
address internal needs of these organizations – not just merely
meeting external requirements.
There are many sources suggesting that the future is the
“knowledge age.” The future will be controlled by businesses
making the most practical use of it. Our time has come. Ergon’s
application of quality principles, quality systems, investments in
material assets and “human capital” provides a solid foundation
for improvement of our business operations, profitability, and
competitive positioning in the market place.
We look forward to serving you in 2005!
4
Welcome SpecFab
Kathyrn Steen
Ergon is especially excited to welcome the people, their
capabilities and facilities that joined our Family of Products
and Services last summer. Specialty Process Fabricators, Inc.
(“SpecFab”) is located at 2353 Haining Road in Vicksburg,
Mississippi, among neighbors Ergon Maintenance Services,
Inc., Magnolia Marine Transport Co., Ergon Terminaling, Inc.
– Vicksburg and Ergon Refining, Inc. SpecFab has the talent,
experience, facilities and equipment
to provide
solutions for fabricated equipment
and integrated equipment
packages from concept
development through systems
commissioning.
5. SpecFab’s experienced staff is ISO-based in their business operations and management practices, with a documented and established Quality Control Program.
6. In-house Certification to Liquid Penetrant Procedure, ASME Approved Certification, Hydro Test to 3,500 pounds per square inch gauge (psig), and authorizations to work on process and pressure power piping systems and unfired pressure vessels.
SpecFab’s design engineering and construction operations
meet or exceed stringent code compliance with national and
international professional and safety organizations. State-of-theart engineering software is used to design components and
projects.
SpecFab’s core product
offerings include
equipment for process
modules, lubrication
systems, filtration and
separation, chemical
storage and forwarding,
chemical injection, heat
exchange thermal control,
compressor and auxiliary skids, hydraulic control modules/
panels, pressure vessels and industrial gas separation.
SpecFab’s management includes Robert Stokes,
Vice President and Don Maye, Manager of
Operations, based at the Vicksburg, Mississippi
facility and Thomas Kibodeaux, Manager of Business
Development, based in Houston, Texas.
SpecFab’s manufacturing equipment and facilities include
four buildings, six cranes, cutting equipment such as Shear,
flame cutter and power saws, Plate roll and press brake for
forming, mills, lathe and radial drills for machining, welding
equipment, milling equipment and painting equipment. An inshop rail spur enables rail transport. Truck trailers and barges
may also be loaded nearby.
Among the engineering innovations and uncompromising
integrity for which SpecFab stands are:
1. Solutions engineered to reduce costs and time to site project completion
2. Specialized project management utilizing tighter controls and
a single Point-of-Contact
3. Product diversity employing modules, specialty components, precision equipment
4. Facility size, location and capabilities to design, manufacture and transport custom machines
Welcome, SpecFab. Ergon is proud to have your specialized
capabilities and talent on our team!
For more information about Specialty Process Fabricators, Inc.
please visit: http://www.specprofab.com
Fuel Gas Conditioning Unit
Instrumentation & Electrical Unit
5
Corporate Spotlight
Ergon’s corporate engineering group serves the Ergon family
of companies in a variety of ways. While the three Ergon/Lion
refineries have their own internal engineering staffs, there
are approximately fifty other facilities that rely on Corporate
Engineering for their engineering support needs. When
necessary, the department also supplements the internal
refinery staffs for project management support. In fact, the
department currently has active projects in all three refineries.
Corporate Engineering’s primary responsibility is to manage
capital projects at Ergon facilities. The department also provides
technical support and a centralized avenue for technical
consistency throughout the company.
Project management involves administering a project from
the conceptual design through commissioning and startup.
Ergon’s engineers work with facility staff and management
to shape the technical aspects of capital projects to meet the
operational needs of the facilities. A preliminary budget estimate
is often required to verify that a project fits within the business
strategy of the company. Once the project scope is defined, the
engineering group begins the detail design process. This process
includes gathering necessary data related to the facility, working
Charlie Buntyn
with vendors and manufacturers to specify new equipment,
and utilizing internal design tools, such as Computer-Assisted
Design (CAD) software to generate design drawings. These
drawings can be reviewed by the facility and then released for
construction.
The engineers are also responsible to verify that the design
is in accordance with industry-recognized and regulatorymandated codes and standards. As the design is finalized, Ergon’s
engineers work with the facility to select contractors or use
Ergon’s internal construction resources to construct and install
the changes or improvements in accordance with the design
drawings. Finally, partnering with the facility staff, the projects is
completed and implemented into the facility’s processes.
While Ergon’s typical capital projects involve the process
equipment and piping associated with many of Ergon’s facilities,
corporate engineering can be exposed to a wide variety of
project types. Some recent examples include constructing a
new maintenance shop for Ergon Trucking, Inc. or assisting
with the piping and equipment layout on an EMIS barge design.
Most recently, however, Ergon Properties, Inc. has opened up
continued on page 7
Engineering Organizational Chart
Charlie Buntyn, PE
Manager of Engineering
Becky Adams
Administrative
Assistant
Scott Blackwell
Project Engineer
Open
Project Engineer
Cody Bailey
Coop Engineer 1
Luke Emory
Project Engineer
Danny Warren
Coop Engineer 2
Emille Griffing
Draftsman
Larry Lick
Designer
Roland Norwood
Sr. Designer
James Henley
Contract Project
Engineer
Marc Lauderdale, PE
Staff Engineer
Properties Development
Organizational Chart
Nathan Witt
Intern Engineer
Tim Plunkett
Vice President Properties
Development
Emille Griffing
Draftsman
6
Open
Engineering
Becky Adams
Administrative
Assistant
Corporate Spotlight continued from page 6
a whole new realm of opportunity for the group to support
Ergon commercial real estate development projects. Ergon’s
corporate engineers have been intimately involved in nearly
ten major projects across the state of Mississippi including four
Home Depot retail developments. In fact, as you can see on the
organizational chart below, Tim Plunkett was recently promoted
to Vice President – Properties Development to provide
dedicated project management support to Ergon Properties.
using the SAP maintenance tools while allowing an engineering
staff to focus more on capital projects without being as involved
with the facilities on a daily basis. The goal is for the relationship
between these groups to be strong enough that this change will
be transparent to their customers, the Ergon facilities and staffs.
Corporate Maintenance will take responsibility for repairing
or restoring equipment to original design specifications and
to prevent failures through preventive maintenance programs.
Corporate Engineering, on the other hand, will be involved in
any modifications that require design changes or additions to the
facilities.
Corporate Engineering is more closely related to Ergon’s other
service groups such as Corporate Procurement, Corporate
Maintenance, EMS, ISO Panels, and, most recently, SpecFab.
Corporate Engineering works with these groups on a daily basis
to administer capital projects and assist with day-to-day support
needs of the facilities. They also work to provide engineering
support to EMS and SpecFab for any external work that they
may undertake.
Corporate Engineering currently consists of six engineers,
three designers, and three engineering students from university
cooperative education programs. There have been numerous
staff changes in the last few years, and the department has many
new faces. The goal of the department is to focus on satisfying
customers at the facilities while maintaining compliance with
applicable codes and standards as well as to ensure facilities
operate safely and reliably in the years to come.
Corporate Maintenance became a separate department from
Corporate Engineering last year. This change was necessary to
allow a dedicated staff for focusing on day-to-day maintenance
Twenty-Five years of Service
David Purvis
Jerry Blancett Celebrates 25 Years
Ergon Trucking, Inc. holds a distinction in
the trucking industry for combined years
of service by our professional drivers,
thanks to men like Jerry Blancett, of Petal,
MS. On October 1, 2004, Ergon Trucking
honored Jerry with a celebration dinner
and traditional gift of a gold wrist watch. In
2001 Jerry earned the Mississippi Trucking
Association’s (MTA) “Driver of the Year
Award” as well as “Driver of the Year” from
XL Environmental Insurance Company, a nation-wide commercial
insurer. Jerry joins two other Ergon Trucking Drivers in this
honor:
•Julius “Shorty” Lee (21 years service to Lampton-Love & Ergon) – 1998 Driver of the Year by both MTA and XL
•Jimmy Dale Mitchell (38 years service to Ergon, retired)
– 1995 Driver of the Year
the average tenure of over 13 years (average tenure of our lease
owner/operators is 10 years, and full-time Ergon drivers average
a tenure of 16 years).They are knowledgeable and experienced
drivers who are, on average, 47 years of age.
I believe Ergon Trucking maintains such a distinction in finding
and keeping good drivers because of the relationships we’ve
built, the pay and benefits we offer, and strong support from the
Lampton family.
An instructor from the North American Transportation
Management Institute recently informed me that U.S. General
Managers and Owners of Trucking Companies report a 150%
- 300% turnover of their Driver/Operators and marveled at
Ergon’s 14% track record. In an industry atmosphere of business
challenges created by constant driver “churn”, he was impressed
with Ergon’s continued ability to perform with a consistent 86%
retention rate or better of drivers / operators.
Jerry’s routes have included all 48 ‘lower’ continental states,
hauling propane for Lampton-Love, as well as several products for
one of Ergon Trucking’s customers, Georgia Pacific.
When we asked Mr. Blancett about his loyalty to Ergon for the
past 25 years of his career, he said,“Ergon has always treated
me real good; it’s been a good and fair company to work for – a
great company. Mr. Lampton has always treated me so well that
I wanted to do the best I could for him and his company.The
people have made all the difference for me: Jimmy Clunan,
David Purvis and the employees at Petal (MS) Terminal – Johnnie
Walley, Darell Little and Joe Chesney – have been great to me”.
Congratulations, Jerry, for your record of driving excellence and
your commitment to Ergon, our products and our customers! We
are honored to rely on men like you. Employees with your kind
of dedication are how this company continues to succeed and
prosper!
Several of the 200 Ergon drivers and lease owner/operators
have celebrated “double-digit years” transporting for Ergon, with
7
What goes around,
The massive effort that keeps Er
“
Y
ou wouldn’t drive a car for four
years without changing the
oil, but in a sense, that’s how a
refinery has to operate,” Richard Meeks,
Ergon Vice President of Economics and
Planning, says.“The plant runs 24 hours
a day, seven days a week, 52 weeks of the
year. The only opportunity to perform
complete maintenance is during a
refinery turnaround.”
A refinery turnaround is a major
maintenance and inspection event during
which large sections of the plant are
systematically shut down and equipment
is opened, cleaned, and inspected for
integrity. A turnaround focuses on
checking and repairing equipment that
can’t be worked on while the plant is
operating. The temporary shut down
also provides an opportunity to integrate
A turnaround can involve anywhere from
200 to 2,000 people working in 12 to 16
hour shifts; work is conducted 24 hours a
day, seven days a week, until the process
is complete. Personnel inspect every area
of the refinery, from operators running
robotic video cameras through sewer
lines 20 feet underground to reliability
engineers inspecting the tip of a 220-foot
flare stack from a basket suspended from
a crane.
and a “critical path” – the sequence of
tasks that will determine the duration
of the turnaround. Prior to setting foot
in the refinery, hundreds of people must
know exactly what they are supposed to
do and exactly when they are supposed
to do it.
But even after the most detailed planning,
some decisions can only be made once
the turnaround is in progress.
“To an outsider, a turnaround looks like
an ant mound,” said Meeks.“In reality, a
turnaround is a well-planned, carefully
orchestrated event that demands
the highest level of organization and
performance from every area of the
plant.”
A Daunting Process
While some safety and environmental
regulations govern maintenance and
inspection requirements, Ergon’s primary
motivation for turnarounds is operating
efficiency.
As a unit fouls or equipment wears, it
can lose capacity, resulting in as much
as a 15 percent reduction in product
yield. Energy and chemical efficiency and
product quality drop.
new or upgraded equipment into the
existing system – a task that cannot
be accomplished at any other time.
At Ergon’s West Virginia, Arkansas, and
Mississippi refineries, a turnaround is
scheduled every one to four years.
This massive overhaul demands two to
six weeks of concentrated effort.
“Deferring shutdown for just a few
months could result in a product that
no longer meets specifications,” said
Neil Stanton, Refinery Manager at Ergon
West Virginia.“Turnarounds restore the
equipment to a ‘start of
run’ condition, maintaining
maximum capacity,
efficiency, and product
quality.”
Before turnaround ever
begins, hours of planning
are invested in the process.
Inspection reports from
previous turnarounds help
identify the scope of work
8
“We often have to determine whether
an upgraded piece of equipment is
needed during this turnaround, or
whether it can wait until the next one,”
Meeks explains.“We will always repair
or replace equipment that
impacts safety. But with
projects of opportunity, we
have to consider not only
whether we’re financially
prepared for an upgrade,
but whether the upgrade is
worth extending refinery
downtime to complete.
We try to accomplish
everything possible,
since the next available
, Is turned around
rgon’s refineries up and running
opportunity might not occur for four
years.”
Shortly after a turnaround, the refinery
manager and other turnaround team
members hold a review meeting.
“We address any issues that affected the
schedule, safety, or cost, and discuss how
we can avoid those problems during
future turnarounds,” said Craig Busbea,
means long hours for days on end.”
Maintenance and engineering groups
organize, plan, and coordinate work.
Operations conducts the orderly
shutdown of equipment. Technical,
engineering, and inspection personnel
specify equipment repairs, replacements,
and additions. Environmental and safety
personnel insure that work complies
with safety procedures. Purchasing,
accounting, and administrative groups
provide back-office support.
The bulk of the work falls into in the
hands of hundreds of skilled craftsmen.
Welders and pipe fitters disassemble
and reassemble equipment and piping.
Mechanics work on pumps and
compressors. Carpenters erect temporary
ladders, scaffolds, and platforms to access
equipment. Instrument technicians
work on control systems, and electrical
technicians work on high voltage power
supply wiring and switches. Designers
and draftsman illustrate how equipment
should be fabricated and installed.
“Though the goal of a turnaround is to
get the equipment down, repaired, and
back up as quickly and efficiently as
possible, the common theme in every
action is safety,” said Busbea.“We follow
stringent procedures that dictate every
detail of how we execute this work.”
Senior Refinery Engineer.“We are always
improving the process.”
A Team Effort
A successful turnaround
requires a team effort from
every function of the plant,
as well as from hundreds
of contract workers
brought in to assist Ergon
employees.
“During the actual turnaround, my
job description expands to include
‘peacemaker,’” Meeks adds.“These
people are working 16
hour days for weeks on
end, and it’s very stressful.
Showing appreciation
for the enormous effort
our people put forth is
an important part of the
process.”
A Never Ending Challenge
“A turnaround is incredibly
demanding on those
involved,” Busbea said.“It
Because turnaround costs
are high and no products
9
are manufactured during the process, the
incentive to increase intervals between
turnarounds is strong.
“The trend in refining is to make
equipment more reliable, durable, and
safer, in order to lengthen the run time
between turnarounds,” Stanton explains.
“New technological developments are
similar to those in the medical field.
Better diagnostic systems help determine
problems more precisely, and new,
minimally invasive methods execute
repairs more quickly and with less
recovery time.”
But while technology plays a role in
the process, the key to an effective
turnaround is the dedication and
expertise of Ergon employees.
“By its very nature, a turnaround is
rarely smooth,” Busbea says.“But thanks
to our people, Ergon’s turnarounds are
absolutely successful.”
Implementation News
Have you wondered at the history, status and goals of Ergon’s
family of companies in relation to the International Organization
of Standardization (ISO) Management Requirements and Quality
Standards?
Ergon’s commitment to quality began in 1954 with Mr.
Lampton’s work ethic, innovative thinking and business
standard for customer satisfaction. The additional mechanism we
espoused to demonstrate and maintain those system practices
was ISO, the model developed over 40 years by the world’s best
thinkers, industrialists, engineers and leaders, to identify and
distill the “best practices” of the most successful enterprises
around the world. The result of this 40-year analysis and research
is the ISO Standard.
The ISO organization
was founded primarily
to develop a common
set of guidelines for
manufacturing, trade
and communications in
commerce and industry.
The need arose, in part,
to the International
Electrotechnical
Commission (IEC)
pioneering work with
other technology fields
such as mechanical
engineering. Today, ISO
has grown to a network
of national standards
institutes from 146 countries working in partnership with
international organizations, governments, industries, businesses
and consumer representatives, as well as becoming a global
bridge between public and private sectors.
Ergon is the Greek verb for “work”. How fitting then, that
officials say the name ISO was also selected from a Greek word,
isos, which means equal. This is interpreted also as meaning ‘the
same’, ‘uniform’ or ‘standard’. For this reason it was decided at
the outset to use a word derived from the Greek root word, so
that in every country, whatever the language, the short form
of the organization’s name is always “ISO”. In 1946, delegates
from 25 countries met in London and decided to create a
new international organization, of which the object would be
“to facilitate the international coordination and unification of
Kathyrn Steen
industrial standards”. This new organization, ISO, officially began
operations on February 23, 1947.
The purpose of the ISO group was to develop a set of consistent
guidelines (standards) that would truly be international and
have the same meaning in Germany as they did in the United
States, France, England, Denark, Japan, Egypt, etc. The purpose
was for Customers and suppliers to use these standards to
improve communication and thus enhance trade, locally,
nationally and internationally.
The ISO “seal” (registration and compliance) can be compared
to a “Master’s Mark” from craftsmen and artisans of centuries
past, a modern-day standard of business and commerce that
assures buyers of a
company’s commitment
and active involvement
to operate by top quality
standards and continually
improve the systems by
which they do business.
The first ISO Standards
were published in 1987,
updated in 1994 and
most recently revised in
2000. You will often see
these identifiers used
with ISO registrations and
compliance of the 9000
series: ISO 9000:1987,
ISO 9000:1994 and
ISO 9000:2000. Ergon
companies began with ISO 9000:1994 and have “transitioned” to
the newest standards, ISO 9000:2000.
Ergon has chosen to use the ISO standards as a method for
implementing and maintaining Mr. Lampton’s commitment to
excellence, the foundation of our management systems, which
comprise responsibilities such as:
• Documentation,
• Management (of quality, customers, planning, authorizations, communications, reviews, etc.),
• Managing Resources,
• Realizing Products and Services,
• Design and Development, and
• Measurement, Analysis and Improvement.
Implementation News continued on page 13
10
Ertech Earns ISO 9000 Registration
Hearty congratulations are extended to Ergon Asphalt &
Emulsion, Inc. – Technical Coatings Division, for becoming
registered to ISO 9001:2000 in May of 2004.“Ertech” joined
Asphalt & Emulsion family of services or products in 1998
to produce a variety of industrial coatings and applications,
including sound dampening insulation used as under-coatings for
the automotive industry, ductile iron pipe coatings, foundation
coatings, sizing emulsions, wax emulsions for gypsum wallboard
application and composite lumber edge seals.
Kathryn Steen
Quality Engineering,Training and Consulting services to
the automotive industry.The PIC Group is a registered ISO
9001:2000 company and an approved provider for many original
equipment manufacturers (OEMs) in the automotive industry,
including Honda and “The Big Three”: General Motors, Ford and
DaimlerChrysler.
Recently a “Gap Analysis” was performed for Ertech to identify
and prioritize the development of additional areas for “best
management practices” unique to the automotive manufacturing
industry. Joe Rigali of Dallas,Texas was selected as the consultant
from The PIC Group to work with Richard and his team. For
more info on TS 16949 please see the article on page 14.
Ertech’s plant opened for business in Spring of 2000 and has
grown significantly in production and demand. For example,
the volume of packaged goods produced per month at Ertech
in January 2003 was 78,000 gallons, and by October 2004 they
were producing 200,000
gallons. Likewise, they expect
to double again in the next
next two years, supplying
3 plants with automotive
product among their other
services. Based in Memphis,Tennessee and managed by Richard
Kirkman, Ertech employs 9 dedicated people who ensure that
quality standards are part of every shipment.
As a consultant for Ertech, Mr. Rigali also trained 15 members
of the Ergon Internal Audit Team in auditing to ISO/TS 16949
standards. Internal auditors may now support and assist Ertech
in their development and assessment processes for compliance.
According to Mr. Rigali,“Richard Kirkman is an exceptionally
sharp guy. He’s one of the best plant managers I’ve seen in 25
years of this business. Ertech is better than about 96% of the
companies I’ve seen, and I’ve worked all over the world.” Mr.
Rigali further commended Ertech for their commitment, site
cleanliness, organization and innovation. What an honorable
distinction, to be among the production plants that Mr. Rigali
said,“remind me of the true spirit of quality endeavors.They’re
living the continual improvement philosophy”.
The Ertech team is clearly not willing to rest on their
accomplishments! They are next pursuing the additional
quality compliance to ISO/TS 16949:2002 standard (Technical
Specifications unique to the automotive industry).To this
end they are working with The Productivity improvement
Center (PIC) Group, an industry leader for Inspection,
Congratulations, EAE – Technical Coatings Division, Inc.!
Left to right: Greg Hunt, Wayne Childers, Kelvin Brooks, Eugene Hunt, Alvertis Coleman, Richard Kirkman, Floyd Hughey, Glen Steinman, Randy Collins, Carrie Munns,
and Bartt Vaughn
11
Quality Tools
Lori West
Root Cause Analysis - Cause and Effect Diagrams
Root cause analysis “is a method used to identify and confirm
the causes of performance problems or adverse trends and
identify the associated corrective actions needed to prevent
recurrence of the causes.” (Excerpted from web “Always
Improving Performance” – Performance Technology Dictionary).
Once the categories (each bone) are established your team
will brainstorm the causes related to each category. For each
cause identified you should ask “why does this happen” and
include that information in your diagram. The team assists by
making suggestions and, eventually, the entire cause and effect
diagram is filled out. Once the entire fishbone is complete, team
discussion takes place to decide and agree on the most likely
root causes of the problem. These causes are circled to indicate
items that require action to be taken. The team will discuss and
reach agreement on the primary root cause and a corrective
action can be implemented to prevent recurrence.
There are several quality tools that can be used to perform a
root cause analysis. One of the most common of these is the
Cause and Effect diagram; know also as the Ishikawa diagram
after its creator, Kaoru Ishikawa, and the fishbone diagram due
to its appearance.
When using a team approach to problem solving, there are
often many opinions as to the root cause. The cause and effect
diagram is helpful in capturing the ideas generated during
brainstorming or investigations and organizing these ideas
visually for a thorough analysis of the problem. A cause and
effect diagram is constructed by drawing an arrow to a problem
or desired outcome (effect) and brainstorming potential causes
that become the “bones” of the skeleton (see example). The
potential causes of any problems are usually confined to 4 or 6
main categories. You may identify your own categories for each
“bone” of the diagram but there are industry related standards
established. Service Industries typically use the following
categories: Policies, Procedures, People and Equipment.
Categories for Manufacturing Industries include: Machines,
Methods, Materials, Measurements, Environment and People.
The Cause and Effect diagram, like most quality tools, is
a visualization and knowledge organization tool. Simply
collecting the ideas of a group in a systematic way facilitates
the understanding and ultimate diagnosis of the problem. It
is a simple non-technical tool that can easily be created on a
blackboard or flip chart. There are also several computer tools
available for assisting in creating Ishikawa diagrams and there
are some that will generate an analysis of the data to determine
the most likely root cause.
If you would like further information, reference material or
templates to create your own cause and effect diagrams contact
the Systems and Performance Improvement Department at
(601) 933-3239 or via e-mail to [email protected].
Reason Phone Not Answered
Machinery
Materials
Audix Exists
LAN Directory
Not Updated
Audix
Directory
Line Busy
At Lunch
Away from
Desk
At Meeting
People
Wrong Extension
In Book
Call Comes
Before/After Hours
Business Call
Talking on
Other Line
Personal Call
Zero Out Not Established
Re-Direct
Issues
Support Staff Has Audix
Method
12
Phone Not
Answered
Implementation News continued from page 10
Here is a quick reference depicting many of the companies
comprising Ergon, Inc., their business segment within our
Family of Products & Services, their current status and/or goal in
relation to ISO 9000:2000 compliance and registration:
13
ISO/TS 16949:2002 Standard
As many of you know, Ergon Asphalt & Emulsion, Inc.’s Technical
Coatings Division facility (Ertech) in Memphis, Tennessee, was
registered to the ISO 9001:2000 quality management system
standard in May of 2004. The next challenge for the group at
Ertech is to become compliant with the ISO/TS 16949:2002 (the
“TS” stands for “technical specifications”) quality management
system standard.
The ISO/TS 16949:2002 standard is used as the quality
management system guideline for those supplying products
and services to the automotive industry. The original TS
David Wigginton
become compliant to the ISO/TS 16949:2002 standard. Since
Ertech is currently registered to ISO 9001, and the TS standard is
built directly off of the ISO standard, a lot of the tasks leading up
to the TS compliance have already been accomplished. Ertech
enlisted the help of an outside consultant to perform a gap
analysis on their quality management system. This gap analysis
will show Ertech management what “gaps” exist between
their current quality management system and the TS quality
management system requirements. After analyzing these results,
Ertech will close the gaps in preparation for a TS compliance
audit in 2005.
Front Row, left to right: Cindy Decapio (EWV – Newell, WV), Kathryn Steen (EI-SPID – Jackson, MS), Ricky Allen, (EI-HRD – Jackson, MS), Cherrie Hubert
(EMS – Vicksburg, MS). Back Row, left to right: David Wigginton (EI-SPID – Jackson, MS), Instructor Joe Rigali (PIC – Dallas, TX), Sam Schupach (EWV – Newell, WV),
Allen White, Jr. (ERI – Vicksburg, MS), Janice Carstafhnur (ERI – Vicksburg, MS), Waverley Artz (MMT – Vicksburg, MS), Scott Mendelson (EI-EHS – Jackson, MS),
Georgia Bedwell (ETI – Bainbridge, GA), Jerry Brumley (LION – El Dorado, AR), Charlie Bennett (SPID – Vicksburg, MS), Kris Williams (EWV – Newell, WV), Bob Walley
(ETI-Birmingport, AL). • Not pictured: Whitney Sims (ETI – Jackson, MS)
standard was introduced in 1999 and later revised in 2002.
This revision aligns the ISO/TS 16949 standard to the ISO
9000:2000 (quality management system requirements) and ISO
14001:1996 (environmental management system requirements)
standards. The intent of the revision was to make it easier for
those supplying the automotive industry. Instead of trying to
satisfy different requirements from different customers, the
new standard allows suppliers to be compliant with one set of
requirements recognized by all of the automotive manufacturers.
Another area of preparation has been undertaken by the
Systems and Performance Improvement Department and the
Ergon Internal Audit team. Sixteen lead and more experienced
auditors received training in Memphis during October on the
requirements, as well as how to audit for the ISO/TS 16949:2002
standard. The auditor training was provided by the same
consultant who performed the Ertech gap analysis. This training
was critical because the internal audit team needed experience
with this standard before auditing the Ertech facility.
Now you may be thinking,“What does all of this have to do
with Ergon?” Good question. Ertech produces a coating that
is used as a sound dampening material in the manufacture of
automobiles. This fact has led to a customer request that Ertech
In addition to being a great credential for attracting new
business, Ertech’s compliance to ISO/TS 16949:2002 is just one
of many examples of the commitment Ergon makes toward
continuous improvement and customer satisfaction.
14
Continual Improvement
Paul Young
Ergon’s Participation in the Petroleum Refinery Initiative
Company saw it as an opportunity to excel and be a leader in the
industry. In August 2001, Lion Oil Company and Ergon voluntarily
participated in the Petroleum Refinery Initiative, and they remain
the only petroleum-refining company to do so.
After more than a year of discussions, in March 2003, Lion
Oil Company voluntarily entered into an agreement (termed
“Global Agreement”) with EPA and the Arkansas Department of
Environmental Quality (ADEQ). Shortly thereafter, in September
2003, Ergon Refining, Inc. and Ergon – West Virginia voluntarily
entered into a joint agreement with the Mississippi Department
of Environmental Quality (MDEQ), West Virginia Department of
Environmental Protection (WVDEP) and
S
D
TAT the U.S. Environmental Protection
E
ES Agency (EPA).
NIT
U
E
O
N
AGENCY
By taking these measures, the three
refineries will reduce emissions
by a combined 3200 tons/yr -- a
level well below what is required
by law. This is in addition to other
emission reductions – over 13,000
N
I
TA
T
tons/yr
– which have occurred
L PROTEC
during the past 20 years. In order to
achieve the latest reductions, Ergon and Lion
Oil Company are investing in excess of $30 million over the next
8 years for installation of air emission controls. Lion and Ergon are
also spending over $100 million on other environmental projects,
such as the production of low-sulfur diesel and
low-sulfur gasoline.
E N VIR O N M
Continual Improvement is an important aspect of all Ergon
business. So, for persons familiar with Ergon, it comes as
no surprise that we strive to have a proactive, continuously
improving environmental program. In order to provide a solid
foundation for its environmental program, in 1991, Ergon
published a “Corporate Environmental Policy,” in which it pledges
to do the following:
•Integrate environmental protection into every aspect of its business activities.
•Comply with all environmental laws or regulations without regard to the degree of enforcement.
•Participate in the development of environmental legislation, regulation or policy issues that may significantly impact our business. Work actively with appropriate government agencies to ensure timely, reasonable, and cost-effective solutions.
Meanwhile, the Environmental Protection Agency (EPA) has been attempting to be more proactive in its compliance and enforcement responsibilities. After designating petroleum refineries as the top enforcement priority for many years, in 1998, EPA implemented the “National Petroleum Refinery Initiative.”The basis for this initiative was actually proposed by a petroleum refiner as an additional way for industry, EPA and state environmental agencies to cooperatively resolve several issues.
The initiative focuses on four major regulatory areas for the petroleum refining industry:
• Prevention of Significant Deterioration/New Source Review (NSR);
• New Source Performance Standards (NSPS);
• Leak Detection and Repair requirements (LDAR); and
• Benzene National Emissions Standards for Hazardous Air Pollutants (BWON).
Many companies participated in the Initiative due to EPA investigations at their refineries, and they perceived it as another burden to the industry. However, Ergon and Lion Oil
Ergon and Lion Oil voluntarily participated in the Petroleum
Refinery Initiative process in order to significantly reduce air
emissions, lay a firm foundation for future operations, and to
develop a more cooperative relationship with EPA and state
environmental agencies. More importantly, participation was the
right thing to do for the environment, the community and the
company.
DILBERT reprinted by permission of United Feature Syndicate, Inc.
15
Trainer Certificates
Congratulations to Ergon employees who in November completed coursework for new training certifications with Langevin Learning
Services, the world’s largest Train-the-Trainer company.
Although several employees participate each year in the Langevin in-house courses offered at Ergon, these six employees have
completed the requirements needed for the following certifications:
Employee
Ergon Company
Certification
John Morgan
Steve Riles
Lori West
Lori West
Cherrie Hubert
John Knopf
Johnny Wacaser
Ergon Asphalt & Emulsions, Inc.
Ergon Refining, Inc.
Systems & Performance Improvement
Systems & Performance Improvement
Ergon Maintenance Services
Ergon Terminaling, Inc.
Ergon Terminaling, Inc.
Training Generalist
Training Generalist
Training Generalist
Training Manager / Director
Training Manager / Director
Training Manager / Director
Training Manager / Director
Manager Receives Master's
Special commendations are extended
to Tom Isonhood, Manager of Ergon’s
Systems and Performance Improvement
Department for earning his Master’s
degree from the College of Business and
Economic Development at the University of
Southern Mississippi. Tom graduated
December 17, 2004 with a Master’s of Science degree
in Workforce Training and Development.
Congratulations to winners of the “Picture This!” contest
featured in the summer 2004 issue of
. Phillip Whitfield,
Ergon Trucking, Inc. in Sulphur, LA; Charles Joiner, Lacox
Propane, Hammond, LA; LaKeshia Allen, Ergon Refining, Inc.,
Vicksburg, MS won the Oct. 15 contest. For answer key, prizes
and photos, see online
at http//www.ergon.com/news.
We Want Your Opinion!
Please give us your feedback
about ! We have posted a
new survey for you to share your
opinions, ideas and
suggestions at
www.ergon.com/surveys.
To inquire about course offerings, company resources or discuss feedback and training
needs, please e-mail to [email protected] or call 601.933.3203.
Systems & Performance Improvement Department
P. O. Box 1639
Jackson, MS 39215-1639
PRSRT STD
U.S. Postage
PAID
Jackson, MS
Permit No. 774