Knowledge ManagementNiraj Sethi 8th July 2017
National Seminar on Project Management Objectives and Challenges Kolkatta
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3
Phases of a Project
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Maha Dhamaka- Bumper Sale It appears MEGA is the Mantra of the day !
Overview
Overview
• Vintage Refineries had Capacities of the order of 0.6 MMTPA against the current trends of MEGA Refineries around 20 MMTPA
• Refineries were fuels only refineries compared to today’s MEGA integrated complexes
• Time cycles have shrunk from 71 months to 36 months
• Today’s MEGA Refineries entail High CAPEX investments
• Current Indian refining capacity is 232 MMTPA
• India is now a refining hub, exporting nearly 80 MMTPA of products.
• Fiscal prudence doesn't permit Cost/ Schedule over runs in MEGA Projects
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Overview
• Projects are growing in size and complexity-Today it is common to think in terms of projects involving investments of Rs. 40,000 Cr and more.
• Integration for value addition characterizes most projects e.g. Refinery- Petrochemicals. The future could see Refining-Petrochemicals- Derivatives and coal gasification integrations.
• Increasing complexity and size accompanied by a need to cut implementation time and cost
• The net result is a set of major challenges that the Project Owners, Consultants, Contractors and Suppliers have to face jointly and overcome at each stage of a project
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Competitive Environment
Logistic Constraints /difficult landlocked terrains
Inflexible procedures with limited Leeway for maneuvering Vendor/ Contractor failures
Empowerment , Decentralization of Powers/authority for quick action
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LSTK High Cost/
Large Overall schedule
OBE EPCM costs/
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Project Implementation Plan - Remains a choice
Panipat Refinery Expansion of 6 MMTPA implemented on a Hybrid mode. A combination of Conventional and LSTK.
Mega Grass Roots Refineries such as GGSRL – 9 MMTPA and Bina 6 MMTPA Implemented on Conventional Route
Euro IV Project Set the trend of OBE mode of project Implementation in Preference to LSTK for major schedule gains towards the Award Cycle of LSTK
Integrated MRPL Expansion chose an Ultimate Hybrid of Conventional, OBE and LSTK
PNCP 0.8 MMTPA Integrated Complex & Paradeep Refinery chose the other Extreme of Total LSTK mode of Implementation
Facilities on BOO basis have also been installed
Recent Projects indicate no one way preference
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Phases of a Project
A Mega Project has the following broad Phases
TAKE OFF ENGINEERING PROCUREMENT MANUFACTURING/ DELIVERY CONSTRUCTION MC/ COMMISSIONING
Project Implementation Plan has to ensure an approach for Each Phase
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Process/Front end
Early Development of Plot Plan as the mother Document
PFDs/ P&IDs and Dimensioned Equipment Layouts
Process and Engineering Design Basis
Clear Definition of Scope for Deliverables from Licensors
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Process/Front end Standardization of Piping Material specifications and Instrumentation
Philosophy with Licensors for minimization of variety and hence reduction in Cost Towards spares while maximizing Interchangeability
Mechanical Design of Static equipment including internals with Firm Definition of hardware
Complete Thermal design of all the Heat Exchangers and Air coolers for Firm Definition of Hardware
API data sheets and Front end Thermal Design /Conceptual Mechanical design of all Furnaces for Firm Definition of Hardware
Primary selection of pumps to finalize the seal arrangement and flushing/ utility connectivity
Clear definition of control System including sizing of all Control valves and safety valves for Clear Definition of hardware
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Front end Detailing
Development of Load list, SLD, Electrical Substation layouts and Electrical System study for Clear definition of hardware
Clear guidelines to perform Residual Basic Engineering including ISBL utility Distribution P&Id’s in Units
Dimensioned Equipment layouts incorporating experience from Engineering considerations & Owners maintenance practices
Hazop Study on P&Id’s and evolution of recommendations to be incorporated in design
Finalization of Interfaces for the contractors
Development of Conceptual UG piping System and General arrangements with guidelines for Detailed Engineering
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Front end Detailing
Safety Audit of the Equipment Layout and Finalization of other safety Requirements
Development of all Architectural drawings for the Buildings Envisaged incorporating Owners Inputs for Clear definition of requirements
Detailed Equipment Layout Plan and Elevation Sections Drawings
Control System and Specifications Definition for DCS/PLC and Plant safeguarding system to clearly define the hardware
Overall Layout Drawings for UG Piping System, Cooling water System, Fire water System, Cable layouts for electrical and Instrumentation system
Development of Clear Design basis documents for all utility systems identifying the Hardware clearly in the documents
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Engineering
Task force working for synergy in engineering etc. – regular Inter discipline reviews.
Hold management system to be in place.
Majority of front (Drawings/ Material/ Physical) shall be made available to the civil and structural contractors at the time of mobilization.
Majority of front (Drawings/ Material/ Physical) shall be made available to the Composite contractor at the time of mobilization.
Piping & Civil/ Structures to be opening batsmen!.
Minimize Mid Course Changes
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Engineering
Exhaustive 3D model review to avoid surprises/ re-engineering and procurement of additional material.
MTOs and AFC drawing extraction from Model
IBR (System Isometrics) & Utility System Isometrics to be extracted from The Model
Vendors encouraged to be accountable for drawings, fabrication etc.
Building contract shall include all associated infrastructures such as AC system, Lighting, Fire alarm system etc.
Monthly meeting shall be organized with the contractors/ vendors for Long Lead and critical items/ Package.
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Fast track ordering on competitive basis
Zero deviation bid and exhaustive discussion before submission of bids may be adopted.
Pre Tender/ Pre Bid meetings
Static , Rotating Equipment may be bulked (Bottom line purchase) for availing advantages of economies of scale
Accuracies of First piping Bulk MTO are critical to Project success
Umbrella contracts for supply of standard equipment Motors/ Transformers/ Switchgear etc.
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Air Coolers
CDU/VDU 6 28 47 10 - 47 25
MS Block 17 68 59 11 11 42 27
DHDT 6 24 16 6 2 12 13
DCU 9 23 19 9 1 34 20
VGO HDT 7 34 26 7 3 25 13
PFCC 10 30 45 6 3 49 31
PP 3 31 5 1 5 24 38
U&O 0 17+
TOTAL 58 255 217 50 26 303 176
Major Equipment- Typical Refinery
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Procurement
1869
403
348
397
OEVRALL
220000
513092
230313
116428
To resize chart data range, drag lower right corner of range.
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UG Piping material procurement to be prioritized to ensure major material availability prior to the contractor mobilization
Minimize site work- Major fabrication in shop.
ODCs sourcing through PORT based vendors
Across the table review of drawings/ documents.
Composite mechanical contract comprising of Mechanical, piping, electrical, Insulation, painting
3D Modeling Review done at 3 stages
3D Modeling accorded priority and Target Major Engineering completion 9 Months prior to MC
Procurement
Field engineering cell along with associated 3D model software.
Peak manpower deployed on large Projects: 20,000/ Over 50 Million man-hours
Tenders for Machinery to facilitate construction
Piling Contractors encouraged to use Hydraulic rigs vis-à-vis Conventional.
Designs tweaked to suit site conditions- Water Table, Hard Rock etc.
Fabrication Yards
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Prioritize UG works and pavement to facilitate uninterrupted construction works
Modular Construction
Awards for Safe working
Constructability studies including Rigging studies for ODC and mega lifts
Contractors encouraged to establish fabrication facility (Auto Welding) at site. Provides Large Inch-Dia daily progress.
Construction
Engineering design to be Construction Friendly
Monsoon Combat Plan & Designs to be in place for uninterrupted site works
Credentials of perennially non performing vendors to be reviewed
Equipment Tracking (GPS) and Logistic Expertise/ Monitoring system to be improved
Possibility of Swing Contracts for supplementing failing construction agencies to be explored (e.g. Hiring Cranes and Manpower Resources)
Construction
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Review if Major ODC’s could be fabricated at site – If space is available.
Typical Past project advantage in Site Fabricated ODCs
Provide Major cranes for Erection and handling of prefabricated RCC / Steel structures and Erection of ODC’s.
Major Site fabricated equipment – Duration in months
COLUMNS Dia (M) Height (M) Weight (MT) Fabrication time (Ahead of sch.)
CDU 7 67.85 642 3 months
VDU 12 60.3 810 3 months
Coke Chambers 9.1 34 340 2 months delay
Reactor 13.8 62 415 1 months
Regenerator 15.3 25 514 1 months
Construction
Work breakdown for Civil work for units and offsite
With Volumes involved- RMC, Batching Plants, Free Issue of Cement & Steel are areas for deliberation
Construction
Chart1
CDU/VDU
Work breakdown for structural work
With Volumes involved- Free Issue of Steel , Pre fabricated Steel delivered from external shops, Modularization are areas for
deliberation
Construction
Chart1
CDU/VDU
MC/ Commissioning
System checks to start 06 months prior to Mechanical Completion for system wise monitoring/ completion/ handover
Extensive Formatting to Checklist and identify the remedial measures
Timely Availability of Utilities (Say N2/ CW/ Steam) to aid schedule
Lining up of specialized agency to facilitate pre-commissioning / commissioning
Adequate spares for last minute use
Vendors on standby/ call for Commissioning assistance
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Key Strategies - Schedule
Target schedule shall be at least 2-3 months before the contractual schedule.
Integrated Project Master Schedule, integrating all the work packages level detailed schedules from Major Contractors, Vendors
Critical Path & Near Critical path analysis at regular intervals using Primavera software
Multi-tiered Project review system Daily / Weekly meetings with Key Contractors Monthly progress review meetings by Senior Management
“War Room” approach for Project Monitoring & Control – Extensive reporting systems with regular Management reviews and meetings
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Long Lead and Critical Activities to be always in focus
Bonus and incentive scheme to encourage vendors/ contractors to improve delivery.
Long lead items shall be floated with preliminary data which shall be updated through amendments before award.
Across the Table Drawing approvals to expedite Manufacture and delivery
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Consolidate all previous project data through database system
Cost Status Reports to be monitored closely for analysis, feedback and corrective action
Value based engineering for optimization, standardization and effective solutions
Close vigil on SOR quantities to restrict variation and exercise schedule control
Monitor variations in rates of Inputs, FE, Taxes/ Duties etc.
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imperative
• All Phases are critical i.e. Pre-Project/ Engg. / Proc. / Const.
• Increased standardization, coupled with Proper planning and appropriate Project controls can help to mitigate the challenges
• Good Project definition is the key to meeting time and cost
• Success depends on use of Key Past Learnings and preparedness for eventualities
• Collaborative approach will work (Vendors & Contractors- Partners in progress)
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Thanks for your patience
Slide Number 7
Project Implementation Plan - Remains a choice
Phases of a Project
Engineering
Engineering
Procurement
Procurement