Last updated on Oct 4, 2024

You're torn between engineering and operations on plant upgrades. How do you decide on the best approach?

When considering plant upgrades, you're often faced with a dilemma: should the focus be on engineering or operations? It's a tough call, as each plays a critical role in the success of your plant. Engineering is about designing and implementing new systems or improvements, while operations ensure that the plant runs efficiently and effectively. The best approach depends on your plant's specific needs, goals, and resources. Understanding the nuances of both disciplines is key to making an informed decision that will benefit your facility in the long run.

Key takeaways from this article

Evaluate plant-specific needs:

Start by thoroughly assessing your plant's goals, whether to increase efficiency, reduce costs, or incorporate new technology. This clarity helps determine if an engineering-led or operations-focused upgrade is most suitable.### *Conduct a cost-benefit analysis:A detailed cost-benefit analysis, considering both short-term expenses and long-term value, is crucial. This financial insight guides your decision towards a more economically responsible approach.

This summary is powered by AI and these experts

1 Assess Needs

Before diving into the decision-making process, it's crucial to thoroughly assess the needs of your plant. What are the goals of the upgrade? Are you looking to increase efficiency, reduce costs, or incorporate new technology? Understanding the desired outcomes will guide you in determining whether an engineering-led or operations-focused upgrade is most appropriate. Engage with both teams to gather insights and identify the most pressing issues that the upgrade should address.

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David Ketel, P.Eng, MBA, LSSBB, CMRP

Mining, Refining, & Industrial Senior Leader ~ Problem Solver ~ Mechanical Engineering SME ~ Nuclear & High Hazard ~ Asset Management Expert ~ Turnaround Management ~ Plant Optimization
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I have found that plant improvements cannot be done in isolation by engineering, or operations, or process technology teams alone. They always require a wholistic approach or there will be re-work later on in the design phase.. or even worse.. after initial construction!

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2 Cost Analysis

Cost is a major factor in deciding between engineering and operations for your plant upgrades. An engineering approach might require a higher initial investment but can lead to significant long-term savings and efficiency gains. On the other hand, focusing on operations could involve lower upfront costs with improvements in workflow and productivity. Perform a detailed cost-benefit analysis, considering both short-term expenses and long-term value, to help sway your decision in a financially responsible direction.

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Jim Humphries

Principal and owner of Performance Dimensions, a support services firm focused on startups and step change improvement
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If the upgrades and risks are big bucks, an interativè business risk analysis effort identifying risks with potential consequences, estimating likelihood and consequence costs, and defining mitigations with mitigation costs is essential. The iterations should evaluate the project execution alternatives. When the probabilities and potential consequences are complicated, quantitative risk assessments should provide the numbers.

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David Ketel, P.Eng, MBA, LSSBB, CMRP

Mining, Refining, & Industrial Senior Leader ~ Problem Solver ~ Mechanical Engineering SME ~ Nuclear & High Hazard ~ Asset Management Expert ~ Turnaround Management ~ Plant Optimization
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I always recommend taking a “life of asset” approach, and ask the following questions: 1. If costs are cut up front to reduce initial CAPEX, what will be the impact later on to sustaining maintenance spend? 2. Is the design considering long term maintenance accessibility? Does it need access platforms, inspections windows, etc that will be costly to add later on? 3. Is the system complex to operate? Is there instrumentation ports that should be included now to be able to optimize performance later on?

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3 Risk Evaluation

Upgrading a plant comes with its share of risks, from technical failures to project delays. When torn between engineering and operations, evaluate the potential risks associated with each path. An engineering upgrade might introduce new technologies that require extensive training, while operational changes could disrupt existing workflows. Weigh these risks against the potential benefits and consider which approach aligns best with your risk management strategies.

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4 Timeline Sync

Time is an asset in any upgrade project. Engineering-driven upgrades may require a longer timeline due to design and testing phases, which could impact production schedules. Conversely, operational upgrades might be implemented more quickly but could require more frequent adjustments. Align your decision with your plant's operational calendar and consider which approach best fits within your available timeframe for implementation.

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5 Expert Input

Consulting with experts can provide valuable insights that help you decide on the best approach for your plant upgrades. Reach out to engineers, operations managers, and industry consultants to gather diverse perspectives. These experts can offer advice on the latest technologies, industry trends, and best practices that could influence your decision. Their input can be instrumental in identifying the most beneficial path forward for your plant.

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David Ketel, P.Eng, MBA, LSSBB, CMRP

Mining, Refining, & Industrial Senior Leader ~ Problem Solver ~ Mechanical Engineering SME ~ Nuclear & High Hazard ~ Asset Management Expert ~ Turnaround Management ~ Plant Optimization
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I absolutely agree with this perspective! Many times I have observed plant design completed by fully competent engineering teams, but they are lacking the operational experience to truly understand the impact of their design for the field operations team in the future. An experienced SME can shed light on these design considerations that never could have occurred to a design team simply because they haven’t lived within an accountable part of an operational team.

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6 Future Growth

Lastly, consider the long-term implications of your decision on the plant's growth and adaptability. Engineering-focused upgrades may position your plant to leverage emerging technologies and market opportunities. In contrast, operations-centric upgrades might enhance current processes for immediate gains. Think about where you see your plant in the future and which approach will best support sustainable growth and continuous improvement.

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You're torn between engineering and operations on plant upgrades. How do you decide on the best approach?

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1 Assess Needs

2 Cost Analysis

3 Risk Evaluation

4 Timeline Sync

5 Expert Input

6 Future Growth

Plant Engineering

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