“RED ZONE PHILOSOPHY” IN TURNAROUND PROCUREMENT

Efficient turnaround procurement is the linchpin of successful project execution, especially when dealing with an extensive array of items, both local and foreign, and often characterized by long lead times. This always increases the complexity of tracking orders and ensuring timely deliveries before initiation of turnaround activity.

The “Red Zone" philosophy emerges as a strategic framework to ensure timely deliveries and streamline operations. It stated that any item which was promised for delivery within four weeks of the start of the event (some items were not due to be delivered until after the start date) would be declared ‘Red Zone’. A dedicated expediter is usually appointed only to handle these items whose job description includes:

1. Coordinate with supplier and manufacturer to re-negotiate the delivery dates and simply remove the items from red zone.
2. Develop a comprehensive delivery program with key dates, ensuring a proactive approach to monitoring progress.
3. Work closely with manufacturers to comprehend and ensure necessary paperwork accompanies items, preventing delays in inspections or port clearance. It usually happens that test certificates or similar test documents are usually missed along with the deliveries. These are then arranged later as an emergency basis and cause delays in acceptance.
4. Regularly monitor the progress of Red Zone items, even involving on-site visits when necessary, or appointing independent inspectors, especially for items sourced from foreign countries.
5. Alert relevant engineers promptly about any potential issues that might impede the timely delivery of items.
6. Check, just prior to delivery, that all paperwork has been generated and will accompany the item (or, if sent under separate post, will arrive before the item).
7. Negotiate with customs officials in both exporting and importing countries to ensure compliance with regulations, eliminating potential delays.
8. Identify alternative delivery routes in advance, calculating associated costs and establishing emergency systems for last-minute delays. Like recently, one of the world’s top trading routes, the Suez Canal, is essentially closed for business to many shipping companies. So the expediter should be the one to sense an emergency and trigger the alternate plans.
9. Conduct final checks to ensure all necessary paperwork is in order before signing off on item delivery.
10. Record all issues causing or likely to cause delays, offering valuable insights for expediting future programs.

The Red Zone philosophy is a practical guide to handling crucial item deliveries for the success of turnaround. In adopting the Red Zone philosophy, attention to detail becomes the catalyst for successful procurement, where precision and proactive measures become second nature.

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Reference:

Lenahan, T. (2006) ‘case study: red zone’, in Turnaround, shutdown and outage management effective planning and step-by-step execution of planned maintenance operations. Burlington, Mass u.a: Butterworth-Heinemann, pp. 62–63.