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Decommissioning An Oil Rig An Introduction to Critical Path Analysis and Project Management Key Stage 5 www.opito.com 01 Engineering Project / Key Stage 5

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Page 1: Decommissioning An Oil Rig - My Oil and Gas Career by the Oil Rig/Gas Production platform and the time frame for undertaking this. ... Decommissioning An Oil Rig generation in Oil

www.opito.com

Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig

An Introduction to Critical Path Analysis and Project ManagementKey Stage 5

www.opito.com

01 Engineering Project / Key Stage 5

Page 2: Decommissioning An Oil Rig - My Oil and Gas Career by the Oil Rig/Gas Production platform and the time frame for undertaking this. ... Decommissioning An Oil Rig generation in Oil

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig

02 Engineering Project / Key Stage 5

AKD is a long established engineering fabrication company working primarily in the Onshore and Offshore markets. Vast experience in the Project Management and execution of large decommissioning projects offshore including upfront scope definition, scheduling and cost estimating, piece small demolition and waste disposal.

YOUR TASK:

You are given the role of project manager. Your task is to schedule the activities in order to complete the decommissioning of the oil rig in the shortest possible time for the most effective cost.

You will complete Tasks as outlined below in the “Project Management Sheets”. Project Management Sheets are commonly used in the oil and gas sector.

In completing this project you will develop your skills in the following areas of mathematics:

n Work in a group to successfully solve a problem

n Construct PRECEDENCE TABLES, CRITICAL PATH NETWORKS and CASCADE CHARTS

n Revise Critical Path Analysis in the context of Decision and Discrete Mathematics

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03 Engineering Project / Key Stage 5

Decommissioning An Oil Rig continued

THE BACKGROUND

Nothing is designed to last forever. In most cases facilities are designed to accommodate a commercial life span. In the case of offshore installations i.e. Oil Rigs/Gas production platforms the commercial life is based on the estimated capacity of gas/oil to be extracted by the Oil Rig/Gas Production platform and the time frame for undertaking this.

As facilities such as Offshore rigs and gas platforms near the end of their operating lifetime the owners of the facility have a responsibility to remove the entire facility back to the original site state.

The following individual tasks (activities) have to be completed for the decommissioning project. Some of the tasks cannot be completed before one or more of the other tasks have been completed.

n The oil rig at the beginning looks like this:

n At the end of the process it looks like this:

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Nurturing skills for a newgeneration in Oil & Gas

04 Engineering Project / Key Stage 5

Decommissioning An Oil Rig continued

TASK 1:

Order these into a precendence table to Determine which tasks need to be completed before others can take place.

A Transport Workers to rigs

B Ensure there is an electrical supply to the rig

C Transport Supplies (food, tools etc)to rig

D Strip out the battery room

E Strip out Kitchen

F Strip out the Equipment room

G Strip out the office

H Perform risk assessment

J Create safety and emergency procedures

K Check the structure is safe for the workers to live and work

M Transport equipment out of the rig

N Check Every room has been stripped

P Transport workers out of the rig

Q Final check on safety of rig

Activity Precedencies Duration

2 days

2 days

1 day

3 days

5 days

4 days

3 days

1 day

1 day

5 days

4 days

1 day

2 days

2 days

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

TASK 2

Create a CRITICAL PATH NETWORK of your precedence table and perform a CRITICAL PATH ANALYSIS to find the critical activities.

Questions to answer:

1. Which activities have to start and finish on time and why?

2. Which activities have float. Ie. They can start later and finish later and the whole project will not be delayed. How much float does each activity have

3. What is the easiest part of this process? Why?

05 Engineering Project / Key Stage 5

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

TASK 2

4. What is the most difficult part of this process? Why?

5. Name and explain one advantage and disadvantage of the method.

06 Engineering Project / Key Stage 5

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

TASK 3

Create a presentation to the rest of the class on how you reached your decisions and how you managed the project according to the criteria in the brief. This should last around 10 miuntes.

07 Engineering Project / Key Stage 5

Page 8: Decommissioning An Oil Rig - My Oil and Gas Career by the Oil Rig/Gas Production platform and the time frame for undertaking this. ... Decommissioning An Oil Rig generation in Oil

Decommissioning an Oil RigTeachers NotesKey Stage 5

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01 Engineering Project / Key Stage 5

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig

02 Engineering Project / Key Stage 5

Context: This is part of the AS Level module for Decision and Discrete Mathemat-ics. This can be used as an introduction into the topic, a consolidation project or as revision material.

Suitability: AS students studying Decision and Discrete Mathematics.

Length: Approximately 4 x 1 hour lessons for KS5.

Equipment: 1 piece of A2 paper per group, attached Powerpoint.

Desired Outcome: A presentation based on their Critical Path Analysis.

Structure:

1 Introduction and Precedence Tables 1 hour

2 Critical Path Networks/Analysis 1 hour

3 Resource Management 1 hour

4 Presentation 1 hour

Lesson Time

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

03 Engineering Project / Key Stage 5

TASK 1:

The following individual tasks (activities) have to be completed for the decommissioning project. Some of the tasks cannot be completed before one or more of the other tasks have been completed.

The students’ first task is to discuss in their groups which activities need to be completed before others can start.

Hand out a copy of the activities below which have been pre-cut out. Ask them to think about what ORDER the activities need to be completed in for the project to be completed in the shortest time.

There will be many different answers for this depending on what your group thinks. Before they start discuss issues such as minimising cost and/or minimising time.

Possible discussion questions:

n Which do you think is more important? Time or Cost? Why?

n How could we go about solving this problem?

Spend 15 minutes in a discussion and decide which order the activities need to completed in.

Ask groups to think about how you could structure the order of the activities to make it easier to analyse. Hand out scrap paper to start jotting down their ideas. All work is rough at the moment.

A Transport Workers to rigs

B Ensure there is an electrical supply to the rig

C Transport Supplies (food, tools etc)to rig

D Strip out the battery room

E Strip out Kitchen

F Strip out the Equipment room

G Strip out the office

H Perform risk assessment

J Create safety and emergency procedures

K Check the structure is safe for the workers to live and work

M Transport equipment out of the rig

N Check Every room has been stripped

P Transport workers out of the rig

Q Final check on safety of rig

Activity

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

04 Engineering Project / Key Stage 5

Spend 15 minutes in a discussion and decide which order the activities need to completed in.

Ask groups to think about how you could structure the order of the activities to make it easier to analyse. Hand out scrap paper to start jotting down their ideas. All work is rough at the moment.

A Transport Workers to rigs

B Ensure there is an electrical supply to the rig

C Transport Supplies (food, tools etc)to rig

D Strip out the battery room

E Strip out Kitchen

F Strip out the Equipment room

G Strip out the office

H Perform risk assessment

J Create safety and emergency procedures

K Check the structure is safe for the workers to live and work

M Transport equipment out of the rig

N Check Every room has been stripped

P Transport workers out of the rig

Q Final check on safety of rig

Activity

PLEASE NOTE:

Activities I and L are omitted because they look too much like 1.

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

05 Engineering Project / Key Stage 5

A Transport Workers to rigs

B Ensure there is an electrical supply to the rig

C Transport Supplies (food, tools etc)to rig

D Strip out the battery room

E Strip out Kitchen

F Strip out the Equipment room

G Strip out the office

H Perform risk assessment

J Create safety and emergency procedures

K Check the structure is safe for the workers to live and work

M Transport equipment out of the rig

N Check Every room has been stripped

P Transport workers out of the rig

Q Final check on safety of rig

Activity Precedencies Duration

2 days

2 days

1 day

3 days

5 days

4 days

3 days

1 day

1 day

5 days

4 days

1 day

2 days

2 days

After a brief class discussion, introduce students to the idea of a PRECEDENCE TABLE (see below) students should create a PRECENDENCE Table. It should start like the one below.

Ask students to first construct a table in rough and then draw a neat copy on their A2 piece of sugar paper.

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Nurturing skills for a newgeneration in Oil & Gas

A Transport Workers to rigs

B Ensure there is an electrical supply to the rig

C Transport Supplies (food, tools etc)to rig

D Strip out the battery room

E Strip out Kitchen

F Strip out the Equipment room

G Strip out the office

H Perform risk assessment

J Create safety and emergency procedures

K Check the structure is safe for the workers to live and work

M Transport equipment out of the rig

N Check Every room has been stripped

P Transport workers out of the rig

Q Final check on safety of rig

Decommissioning An Oil Rig continued

06 Engineering Project / Key Stage 5

Activity Precedencies Duration

2 days

2 days

1 day

3 days

5 days

4 days

3 days

1 day

1 day

5 days

4 days

1 day

2 days

2 days

Students will have to list which activities directly affect the activity in order for it to commence on time. Tell students to not have more than 2 precedencies for any activity. Below is an example:

If a group struggles to get a precedence table set up then give them the one below which they will be able to use for the remainder of the project.

C, J

H

K

A, B

A, B

D, E

D, E

F, G

F, G

Q

M

Each group is to give a short 5 minute presentation on how they reached their decision.

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07 Engineering Project / Key Stage 5

Lesson Plan

Activity Duration Notes

Ordering Tasks 15 minutes Students to discuss in their groups which order the tasks need

to be completed in and which tasks need to be completed

before another can commence. Walk around encouraging

students to think critically about the project. Emphasize that

there is a need to minimise time and cost and that this can

have big implications for the profitability of a project. Ask

students to record their ideas initially in rough and then to

produce a precedence table in neat on A3 paper/sugar paper.

Feedback 5 minutes Students to give feedback to the whole group to share their

ideas and order of precedence.

Creating a

Precedence Table

10 minutes Introduce the idea of a precedence table and ask students to

construct a neat copy on their piece of A2 sugar paper.

Plenary 5 minutes per group Talk about the importance of the minimisation of time and

cost. Explain that next lesson will be built on creating a correct

mathematical technique to help find the order of the activities.

Introduce lesson

and explain the task

10 minutes Please see powerpoint for an introduction on this.

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08 Engineering Project / Key Stage 5

TASK 2:

Create a CRITICAL PATH NETWORK. Depending on the level of the student some examples may be explained. There is an accompanying presentation on how these are created using an example of a precedence table in Task 1. Please read through presentation first to the class and familiarise them with the technique of creating a CRITICAL PATH NETWORK.

Give groups 15 minutes to create their network in rough and then for them to reproduce this in NEAT on a A3 piece of paper.

Critical Path Analysis

The next part of lesson is based around performing forward and backward passes to help identify the critical path. Again depending on the level and prior knowledge of the students it may be useful to show the Powerpoint example. Allow up to 10 minutes. After this groups should perform the forward and backward passes to find the critical path of activities. Add this to the poster.

Please see an exemplar critical path network for the precedence table above complete with forward and backward passes and the critical path highlighted below:

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Nurturing skills for a newgeneration in Oil & GasDecommissioning An Oil Rig continued

09 Engineering Project / Key Stage 5

At the end of the lesson – students in their groups should answer the following questions:

1 Which activities have to start and finish on time and why?

2 Which activities have float. Ie. They can start later and finish later and the whole project will not be delayed. How much float does each activity have?

3 What is the easiest part of this process? Why?

4 What is the most difficult part of this process? Why?

5 Name and explain one advantage and disadvantage of the method

Discuss the answers to this in a plenary.

Lesson Plan

Activity Duration Notes

Creating the Diagram 15 minutes Students to create a network in rough first and then replicate

in neat on the A3 paper.

Explanation of Forward

and Backward Passes

10 minutes Go through slides on Powerpoint to show how to do this.

Identifying the

Critical Path

15 minutes Students to perform the forward and backward pass and then

identify the critical path.

Plenary 5 minutes Students to discuss the questions mentioned above.

Introduce lesson

and explain the task

10 minutes Please see powerpoint for an introduction on this. Go through

slides to show how to create a CRITICAL PATH DIAGRAM

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10 Engineering Project / Key Stage 5

TASK 3:

The aim of this lesson is to produce a RESOURCE/CASCADE CHART. The idea is that we can schedule the individual activities easily to decide whether we want COST or TIME to be the optimising factor.

Obviously the more people we use the more expensive the project but the quicker it will be completed. Conversely, the less people we use the cheaper the project but it will take longer for the project to be completed. The main objective is to produce CASCADE CHARTS for the optimal time and optimal cost of the project. Tell them that in reality each task is completed by a team of people. The cost of a team of people per day is £5000 whether they are working on an activity or not but if a team is hired they have to be transported to the rig and together with a ‘call out’ fee this costs £20,000. Also each time a team leaves it costs £6000.

So for example, if a team is hired for 4 days this will cost 4 × £5000 plus the initial ‘call-out’ fee of £20,000 plus the £6000 for bringing them back; in total £46,000. Also for every day the project is delayed there is a penalty charge of £7000 per day. Students may use as many teams as they decide upon but this will have an impact on the cost.

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11 Engineering Project / Key Stage 5

The introduction of how to make CASCADE CHARTS is included on the Powerpoint. Hand students a photocopy of the activities from the photocopy PDF:

These are made at a horizontal scale of 1.5 cm per day. They are all proportional and so can be cut out to be used for resource allocation.

Students should cut out the activities and create a CASCADE CHART based on either OPTIMAL COST or OPTIMAL TIME. First of all they should move the activities on their axes, once they have completed the diagram they are to write them in neat on the poster and calculate the TIME and COST of each of the projects.

Any time left at the end of the lesson can be used for preparation of a presentation for next lesson.

Alternatively the groups could work the optimum solution for the constraint that they haven’t calculated.

Key Stage 4 – Groups can still create a CASCADE CHART from their precedence table. Please choose the appropriate option on the powerpoint to go through the extra information.

A B C D

H J K M

E F G

N P Q

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12 Engineering Project / Key Stage 5

Lesson Plan

Activity Duration Notes

Resource Analysis 30 – 40 minutes Students to create a cascade chart for either optimal cost or

time. Once complete they are to copy onto their poster in neat

and calculate the final cost and time.

Groups who have finished early can be given the task of

starting work on their presentation for the next lesson.

Feedback 5 minutes Explain to students that they must prepare a 5 minute

presentation next lesson and they must prepare for it.

Introduce lesson

and explain the task

10 minutes Please see powerpoint for an explanation on how to create

the cascade charts.

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13 Engineering Project / Key Stage 5

TASK 4:

The students should present their work to the rest of the class. As teacher you can award some prizes for best presentation/best teamwork etc. Create the order of presentation before it starts to avoid contention and explain to the class that they must keep to their five minutes to make this as realistic as possible. Explain to them that they should be giving the presentation as if they are submitting a solution to a business client. It has to be clear, easy to understand and appealing for the audience.