Project Charter Overview

Project Name: Kumang Cluster Control System Project

Company: Integrated Control Sdn Bhd.
Division: Oil and Gas
Department: Control System Engineering Solutions
Process or Product: Control System Package

Prepared By:

Document Owners Project Role

FAIZALABDULLAH PROJECT MANAGER

MOHAMAD FANI SULAIMA ENGINEERING MANAGER

NURUL AZIMAH AHMAD ARZAAI PROJECT PROCUREMENT

NORSEHA ARIFFIN SERVICE MANAGER

ANIS PAUZI PROJECT FINANCE MANAGER

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 1.0 Project Charter Purpose

The Project Charter defines the scope, objectives, deliverables and overall approach for
the work to be completed. It is a critical element for initiating, planning, executing,
controlling, and monitoring the project. It is the absolute master document for the project and
as such it should be the single point of reference on the project for goals and objectives,
scope, organization, estimates, deliverables, and budget.

There are items within the Charter that are supported by additional project control
documents. In these instances the Charter will name the documents involved and describe
their purpose and use throughout the project life cycle. This serves to keep changes to the
master document to a required minimum while providing a mechanism to monitor and
control the key areas of the project on an ongoing basis.

The Project Charter also serves as a contract between the Project Team and the Project
Sponsors, stating at a minimum:

 Why are we doing this and what is the overall objectives.

 What are the key assumptions and constraints going in.
 When do we need to be finished (business and commercial needs).
 What scope of works and deliverables must be completed and in what order.
 What are key activities, resources and money (budget) is needed.
 How this project will be managed, keep things on target and monitor progress.
 Who is going to actually do the tasks and where.

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1.1 Project Background

Integrated Control Sdn. Bhd. (hereafter called as ICSB) is an established company which
specialized in Instrumentation and Control system engineering for oil and gas and process
industries as Systems Integrator. The company provides total solution for the Automation,
Instrumentation and Control needs of the rapidly developing process industries of Malaysia and
the neighboring countries especially in the field of Oil, Gas and Petrochemicals. Following are
the services that Intergrated Control Sdn Bhd can provide as a minimum:
 Automation, Control and Instrumentation projects Management
 Engineering from feasibility study to detail design
 Supply of Field and panel Instrumentation
 Supply of Control system such as DCS, Fieldbus, ESD, HIPPS, Fire & Gas etc.
 System Integration
 Commissioning and Site services
 After sales services
 Training
Integrated Control is officially appointed as system integrator in Malaysia by some
reputed DCS and Safety system manufacturers such as Yokogawa Electric, Emerson Process
management, ABB, Siemens and Allen-Bradley. ICSB can provide the local content of the oil,
gas and Petrochemical projects the full scope of Control, ESD and F&G systems, Local
coordination, Engineering, Tests, Commissioning, and Training and after sales services with
compatible prices.
Within the relatively short time from its establishment, ICSB has won a contracts or
engineering and supply of control systems for a new offshore platforms project, Kumang Cluster
Development Project located in Offshore Sarawak by Petronas Carigali Sdn Bhd-Sarawak
Operation (hereafter is called as PCSB-SKO).
The size and cost of the projects is high to new established company, however, as the first
major project, ICSB need to perform very well to ensure the project successfully completed
without any bad records.

The cost is not to exceed $10,000,000. This includes the initial project planning,
design and engineering, installation and testing, and also commissioning and site services.

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 The appointed project manager will be responsible for the implementation, and will hire
an experienced engineering staff to ensure the smoothness of the project implementation. The
VP Manufacturing is the Project Sponsor and must sign off on all major deliverables. The
various company departments will contribute experienced staff resources to the project team
for the duration of the project.
This project will takes one year to be completed. The project has seven phases to be
implemented; preliminary design planning and research, engineering, procurement, hardware
integration and assembly, factory acceptance test, site installation and testing, and
commissioning. All seven phases is described under work breakdown structure (WBS).

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1.2 Project Key Assumptions and Control

Project Assumptions:

 The project requirement and standards can be implemented by project team

 The project key personnel’s level of knowledge and experience are sufficient to
meet the project requirement. .
 An additional experienced engineering staff will be hired to run the project.
 Facilities and workstations will be made available for the project team
 The project can be implemented within the cost budget.

Project Constraints:

 The economy is bad – the cost budget cannot be exceeded.

 It may be difficult to get additional experienced engineering staff
 The timeline and schedule must be met. No delay acceptable.

Project Risk Management:

Effective project management is about identifying and managing risks to the project. The
risks should address both people resources and other resource areas. The Project Charter
specifies the Risk Management Plan including; activities, roles and responsibilities –
samples are given below.

Individual risk items are tracked on the Project Risk Management Item Tracking
document. The Project Manager is responsible for maintaining this document.

Project Scope Change Management:

In spite of having done the very best up-front planning and definition of project
requirements, inevitably someone will want to change the scope of the project. Scope

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“creep” impacts the project deliverables and has been the downfall of many a project.

It is necessary to strictly control project scope to avoid confusion, wrong expectations

and the possibility of project failure. This is done by implementing a formal project
scope change procedure. The Project Scope Change Request and Project Scope Change
Request Log forms are designed to support the formal procedures. No changes are to be
made to the approved project scope and deliverables without obtaining approval through
the formal scope change management process.

The Project Scope Change Request form is divided into three sections to fully document
input from the requestor, reviewer, and decision maker. It supports a cost / benefit type of
impact analysis for every requested change. The use of this form is the only way to request
and obtain a change to the project scope.

The Project Scope Change Request Log form is maintained by the Project Manager and
provides an overview and status of each and every change requested. A history of all
changes is maintained on this form.

Regularly scheduled, frequent reviews of all open change requests are to be done to
ensure all requests are dealt with in an expeditious manner and to protect the integrity of
the project plan. These review meetings are to be included in the Project
Communications Plan.

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1.2.1 Risk Management Plan
Activity Descriptio Ownership
Identification n the project, the
At the beginning of Project Manager
major risks will be identified and Engineering Manager
documented for tracking purposes. A Finance manager
specific risk management meeting
will be held with the key project
management to establish the project \
risks.

Reporting A monthly meeting will be held to Project Manager

review the overall project risk status. Lead Engineers
Provide a status update to the Project
Risk Management Item Tracking
document, and add any new risks as
applicable.
Table 1 Risk Management Plan

1.3 Project Business Needs

This project is the first major project in oil and gas secured by Integrated Control
Sdn Bhd, in order to survive in this business and also towards establishment of the
company in the industry, this project need to be delivered without any bad records or
complaints.

If the project successfully implemented, the possibility of the company to secure

another major significant project is high.

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 1.4 Project Scope of Work

1.4.1 Objectives:
The ultimate objectives of this project are:
 To deliver all the project deliverables on time base on schedules without any delay.
 Meet all requirement and specification give by client
 Successfully install and commission the control system at site

1.4.2 Project Key Activities and Deliverables:

Milestone Activities and Deliverables Date
Project Initial Work and  Project Execution Plan Document January
Planning  Project Schedule (Gantt Chart)

Engineering Design – Submit  Functional Design Specifications July

for Approval
Factory Acceptance test
(FAT)
Site Acceptance Test (SAT)
Commissioning
Table 2 Project Key Activities and Deliverables
1.4.3 Project Estimated Costs by Milestone:
Milestone
Project Initial Work and Planning
Design and Engineering – Submit
for Approval
Factory Acceptance test (FAT)
Site Acceptance Test (SAT)
Commissioning
 System architecture Drawings
 General Arrangement Drawings
 Loop drawings
 Datasheets of hardware
 Certification of Standard for certain
hardware.
 FAT Procedure for review and Approval August -Sept
 FAT conducted in Project office/Staging
 FAT report (with no punch list)
 Sat Procedure for review and Approval Oct-Nov
 SAT conducted at site (Fabrication yard).
 SAT report with cleared punch list.
 System start-up at Site (Offshore). Dec
 System commissioning and tuning
 Hand Over
Estimated Cost Payment by Client
RM 250,000 30 % of Overall Project Value
RM3,000,000 20 % of Overall Project Value
RM 2,000,000 20 % of Overall Project Value
RM 2,000,000 20 % of Overall Project Value
RM 1,000,000 10 % of Overall Project Value

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 Table 3 Project Estimated Costs by Milestone:

1.4.4 Project Flow Chart

Kumang Cluster
Offshore Development Project Study, System Design
Project Kick Off Planning & Research and
Engineering

Hardware
Factory integration & Procurement
Acceptance Test assembly

Site Installation
and Testing Commissioning

Commissioning

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1.5 Project Management Strategy and Resources Planning

The Project Resource Plan defines; the project organization chart, the staff resources
required by skill set to complete the various project activities, and the non-people resources
required to support the project team.

1.5.1 Project Organization Chart

The following organization chart shows the proposed project team reporting structure.

Kumang Cluster
Offshore
Development Project

Project Management Engineering and Site

and Planning Procurement Commissioning
and Services
Software
Engineer
Project Manager Lead Hardware Lead Software Service
Design Design Engineer
Engineer Engineer

Project Engineer Technician

Hardware
Engineer

Planner
Technician Technician

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 1.5.1.1 Project Manager Responsibility
The Project Manager is hereby authorized to interface with management as required,
negotiate for resources, delegate responsibilities within the framework of the project,
and to communicate with all contractors and management, as required, to ensure
successful and timely completion of the project. The Project Manager is responsible
for developing the project plan, monitoring the schedule, cost, and scope of the
project during implementation, and maintaining control over the project by
measuring performance and taking corrective action.

1.5.2 Resource Requirements by Skill Set

Following are the estimates for project resources.

Duration of Estimated
Resource Type Quantity Job Status
involvement Cost
Project Manager 1 Jan-Dec Internal staff RM241,920
Project Engineer 1 Jan- July Internal staff RM120,960

Planner 1 March- Sept. Internal staff RM53,760

Lead Hardware Design Engineer 1 March- Sept. Internal staff RM71,680

Lead Software Design Engineer 1 March- Sept. Internal staff RM71,680
Hardware Engineer 1 March- Sept. Internal staff RM49,280
Software Engineer 1 March- Sept. Internal Staff RM49,280
Technician 3 March- Sept. Internal staff RM26,880
Table 4 Project Resources

1.5.3 Project Communications Planning:

Effective communications are a vital part of successful project management. A

communications plan is to be established at the very beginning of the project and
communicated to the entire team. The plan describes all mandatory regular
communications activities. These should include topics such as; reporting, meetings,

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 notices and team building. This plan sets out the timing and responsibilities of
essential items; for example, the Project Status Reports for the individual teams and
the overall project.
The Project Team Communications Plan document is used to define and
communicate the plan. The Project Manager is responsible for establishing and
maintaining the plan.

1.6 Project Reporting

An important part of successfully running a project is to specify up front the

general tools and templates that are to be used throughout the project for meetings and
reporting. This standardizes the documents to be used and facilitates a structured
approach to setting up and maintaining centralized project documentation storage and
retrieval. These and all other project documents are to be stored electronically in a
centrally located and managed set of folders.

The following document templates are available to handle the key repetitive project tasks:

 Project Meeting – Agenda

 Project Meeting – Minutes
 Project Action items – Open
 Project Action Items – Closed
 Project Issue Management Form
 Project Issue Management Log
 Project Weekly Time Tracking – Employee
 Project Weekly Time Tracking – Summary
 Project Status Report

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1.7 Project Wrap-Up:

The Project Wrap-Up Report is prepared by the Project Manager at the conclusion
of the project. Prior to its preparation, an interview process is conducted with all of the
main project participants to complete the Project Lessons Learned document. All of
the major project activities are given a rating by the participants and an overall summary
of all the responses is prepared. The Project Lessons Learned summary document
becomes an important component of the project wrap-up. Also, a summary description
of the project highlights and lowlights is provided for the major activities.

A listing of any outstanding tasks that should be followed up on post project is

provided along with summary recommendations for future projects.

The main purpose of this report is to learn those things that went well, those things
that could be done better, and apply that knowledge to subsequent projects.

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 2.0 Work Breakdown Structure (WBS)

Kumang Cluster
Offshore Development
Project

Preliminary Design Hardware Factory

System Site Installation Commissioning
Planning & Research Procurement integration & Acceptance Test
Engineering and Testing
assembly

Overview & Architecture Hardware and Integrate Hardware a Panel Full systems
Requirement Design Software hardware test (in house) installation, test with real
Research Purchasing /software base hook up and Process
on System wiring
architecture
Sub-Vendor design Tuning and
Customer Hardware
Panel power
Specification Design Services Logic testing
Software and up and Loop
Study
Assemble, Logic Test
installed and functionality
wiring works all Test
Project Planning Software & the hardware in System Platform
Logic Design System panel interfacing Process startup
with other
systems such
as Telecom and
sub-systems

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2.1 Preliminary Design Planning and Research

2.1.1 Overview and Requirement Research

The Kumang Cluster Development Project consists of F9, Kumang and Kanowit
field development. It comprises of a Central Production Platform (CPP) in
Kanowit field (KAKG-A), drilling platforms for F9 (F9JT-A) with a subsea well,
Kumang (KUJT-A) and the Kanowit subsea wells (KASS-A) fields.

Kumang (KUJT-A) and F9 (F9JT-A) will be satellite drilling platforms suitable

for both Jack-up and Tender Assisted Rigs. The drilling platforms will be
designed for unmanned operation with interconnecting pipelines to KAKG-A.

The scope covered under Process Monitoring Control Systems (PMCS) shall
include control and monitoring of Hart signals, Foundation Fieldbus signals and
serial Modbus communication.

2.1.2 Customer Specification Study

The specification from our customer are including in PCSB-SKO project
specification come out with all applicable codes, standards and regulations
defines the functional requirement for design, engineering, manufacturing,
fabrication, integration, configuration, testing, delivery, installation supervision,
commissioning support and training for the independent Process Monitoring and
Control System (PMCS) and its equipment to be installed at KAKG-A.
The submission shall provide sufficient data to allow the PMCS to be evaluated
against the estimated life-cycle cost for PMCS. In this respect, system overall
integration, equipment’s capital cost, cost of spares, weight, size, installation,
maintenance, reliability and downtime costs shall be considered.
As Vendor, we shall submit full technical details of our standard PMCS, which
shall meet the requirement from customer.
The PMCS, as a minimum, shall be able to support HART field instruments and
also Foundation Fieldbus field instruments which have been certified to
Interoperability Test (ITK) by Fieldbus Foundation. The PMCS shall have passed
the Host Interoperability Support Testing (HIST) based on HIST procedures set
by Fieldbus Foundation.

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The PMCS shall be completed, tested and supplied in accordance with the
requirements given in the customer specification.

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2.1.3 Project Planning
This project takes duration of one year to be completed. It consists of 7 main tasks, from the preliminary design
planning and research until project handover to the client.

Figure 1 Project Planning Chart

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2.2 System Engineering

2.2.1 Architecture Design

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 Figure 2 Kumang Cluster PMCS Architecture

2.2.2 Hardware Design

Hardware design is firmly based on the customer requirements. More
hardware materials are needed when more Input/output (I/O) module needs is
required. For this Kumang project, we have designed the system in term of smart
integrated communication between distributed control system (DCS) and safety
system consist of emergency shutdown (ESD) and fire & gas (FGS) systems. This
systems as another alternative to cut the cost during the old system for DCS and
SIS communication is based on the Modbus communication that require more
data communication hardware and software used.

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DCS SIS
 Figure 3

Integrated Systems between DCS and Safety Control Systems

Figure 2 shows that smart integration of PMCS using Ethernet

communication that directly joints the DCS and SIS. The hardware design is also
based on the field process that has the direction of communication between the
controller and instrument such as actuators, sensors, automatic valves and so on.
The flow of the process control is explained by the Figure 3 which include
Inputs data from the field instruments and solve the command via software logic;
lastly the signal is sent through the Output Module that bring the output data to
control the instruments in case during the emergency shutdown or to open and
closed the valve during the Alarm status come out in the LCD screen. They guy
who is monitoring this workstation is called as control system operator.

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 Figure 4 Control Process Flow
As a new company, for this project we have already chosen the DeltaV
control system that has been supplied by Emerson Process Management. This
product comes from US that provides and operates in many bigger chemical
plants including oil & gas platform for process control event in Middle East.
A part from that, the hardware design also covers the cabinet design as the
importance part in order to create the best place for the controller and I/O module.
For the cabinet design, the 1700x800mm measurement is preferred as the
requirement from our client. We will provide 22 cabinets to place the controller
which consist of half for system and another half for marshaling. For system
cabinets, the Main Processing Module, Communication Module and I/O card will
be slotted in vice versa for the marshaling cabinet and will be a location for
Terminal Block that provides jointing smart wiring method from Junction Box in
the field directly to the control system.

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 System Cabinet Marshalling Cabinet

Figure 5 System and Marshalling Cabinet Design

In order to get the best hardware design; we prepare several methods and
constraints for the design based on client specification as follow:
i. Learn from previous project design
ii. Refer the consultant about field and process
iii. Chosen the best existing system in other platform that almost
similar to this project design. Learn from them.
iv. Smart wiring design, not too much in marshaling cabinet.
v. Smart Power System design based on International Safety
Standard.

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2.2.3 Software & Logic Design
2.2.3.1 DCS Logic and Graphic Design
Software (logic) design is related to the logic that functional as the brain for
the automation process control systems. Our system engineer will design the logic
which is based on the field process flow and condition to send and get the data.
Logic for DCS consists of many types and one of them is called as Function
Block Diagram Design (as shown is Figure 6) that is used in huge chemical, oil
and gas control system field.
In DCS DeltaV software; configuration of the process logic and graphic
logic for process flow is depend on the Piping and Instrumentation Drawing
(P&ID). Like process logic design, the graphic logic design has their software
which is called as Human Machine Interface (HMI) that include in Emerson-
DeltaV program. The Figure 7 has shown the example of the HMI graphic design
from the previous project. This HMI graphic design indicate the alarm status,
level of temperature, level of pressure, level of tank and many more information
as per our client requirement.

Figure 6 Example of Logic Design

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 Figure 7 Example of the HMI Graphic design

2.2.3.2 SIS Logic Design

In DeltaV SIS, Safety Instrumented Function (SIF) is implemented in the
SIS Module. DeltaV SIS system uses Function Blocks for the Software
Configuration. The SIS Module configuration includes the logic based on the
Safety Requirement Specifications and any alarming functions/parameters that are
required by the SIF. An area container holds the SIS modules (SIF configuration).
Each SIS module will be configured using Library Software template,
Project specific Software template and the free logic as required by the function.
There are two types of SIS logic design proposed for signal handling in this
project as explained bellow:
Fail Safe Logic-De-Energize to trip- The configuration of the safety
instrumented functional (SIF) functions will be based on De-energize to trip
operation. A logical “1” indicates healthy or No trip action and a logical “0”
indicates abnormal or Trip action. Input signals are fail safe or de-energized to trip

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 and valves will enter the safe position if energy instrument air is lost. This
complete design method for ESD logic will be built on De-energize to trip logic.
Fail Safe Logic-Energized to trip- Energized to trip systems can be
found when the system design should avoid false trips. This can be case as for
FGS systems. Within DeltaV SIS still a 1 indicates the healthy or No trip action
and a logical “0” indicates abnormal or Trip action. If the input signals are not
failsafe “in the field” or contact normally opened and closed to trip, inversion in
the input function block will be applied before using it in the logic. If output
signals are non-fail safe(Energize to Trip), then the logic will be implemented
using De-energize to trip action, but this output will be inverted in external device
called of “ Inverting Relay” before connecting to the element. This complete
based design FGS logic will be built on Energize to trip logic.

2.3 Procurement

2.3.1 Hardware Software Purchasing and Sub-Vendor Services

Procurement is the full ranges of activities related to purchasing materials
include hardware and software, services and works. All of Kumang Cluster
project progress and services involve procurement. Our procurement team will
range from contracting for an entire service to purchasing even the small assets
such as screw and nut. The procurement process does not end at the construction
stage, but spans the entire life cycle of the project from inception, design through
to contract management and until valid of the warranty.
Our sub-vendor service is like most others company that prepare us with
all the equipment needed to complete the project. Is like open the tender and
select the best price with the quality aspect of material; the procurement team
need to play their responsibility to get the best sub-vendor.
The details explanation for this topic is covered via Bill of Material
(BOM) as shown in appendix.

2.4 Hardware Integration and Assembly

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2.4.1 Hardware and Software integration Base on Design

Different suppliers offer different strategies for operational integration of

plant systems. For this Kumang Cluster PMCS Project, the dilemma is how to
achieve an integrated control and safety solution with advanced functionality and
productivity, without compromising safety and security.

In a typical industrial operation, four levels of integration are essential

from a usability point of view:

 First, the operational integration must allow plant personnel to have a

seamless, transparent interface to the process under control. Whether the
actual strategy is running in the process controller, the safety system, or on a
higher level makes no difference. All required information would be available
on the operational level.
 Second, peer-to-peer communication between safety controllers and process
controllers is the key to integration. Information from one controller needs to
be communicated to peers quickly in order to anticipate process startup or
abnormal situations in a controlled manner.
 Third, all data available in the lowest level of process and safety I/O can be
transferred to the higher level of operations and turned into information that is
usable for various higher level applications.
 Finally, configuration tool integration only has added value if the point
information is interchangeable. This means the user like PCSB-SKO has a
single point of data entry, and all information entered into the database can be
replicated to other databases. The information is available for use at all levels
of the safety and control topology.

It should be noted integration of the DCS and SIS does not imply a single
common system. Rather, the two systems are integrated for ease of use and
convenience. The configuration software may have different types of logic
function blocks, with some meant exclusively for use in safety functions and

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 others used in normal control system functions. If the logic solvers need to
communicate with other logic solvers, then it has to be over a communication bus
that is robust enough to carry safety-critical data reliably. Thus, the integrated
system is not really totally integrated but is much more closely aligned than
earlier totally stand-alone systems. Figure 1 and Figure 8 has shown the big
picture of the integrated system in term of hardware and communication line
redundancy.

Figure 8 Systems Redundancy

2.4.2 System Panel Assembly and Wiring Works

System panel assembly work is referring to the wiring and installation of
the power distribution and installation of the controller module. In our case as the
project based company; we are divide this panel or cabinet assembly work to the
subcontractor which is always integrates in every previous project. They are
Bartec and Stahl. Thus, the Figure 9 has shown the drawing for cabinet assembly
built for our sub vendor reference. The cabinets will house the DCS and SIS

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 controller, system power supplies, I/O card network equipment and terminal
blocks.

Figure 9 Cabinet Layout Drawing Submitted to Sub Vendor for Installation

The Cabinet wiring is carried out in a neat workman like manner. The total
loading of the wiring or I/O cables in the ducts is not more that 80% in order to
fulfill the requirement of 20% spare in any cabinet as follow in the international
standard. All the wiring within the cabinet is passing through separate ducts of
different types based on the signal types.
The cables shall be neatly dresses tied with cable tags and adequate spare
space shall be provided in these ducts for future use. All field instruments cables
are not in our scope of supply.

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 I/O Signal Wire Label Format-the text printed on the sleeve must represent
the termination point of the wire, first designator is the equipment it connects to
terminal strip I-JB-1007, then terminal designation, followed by a “/” and finally
the wiring source. The following diagram illustrates the I/O signal wire label
format:

Figure 10 I/O Signal Wire Label Format

A part from that, the key of security in every single product provided by
our team is referring to the international standard. Cabinet security like high
temperature alarm and cooling system as a proven that we have the ability to
supply the best DCS and SIS for oil and gas field.

2.5 Factory Acceptance Testing

2.5.1 In-House Hardware and Software Test

This Factory Acceptance Test (in this report termed as FAT) is the part of
the working process procedure to make this project succeed. One of the document
called as FAT Procedure is provided consist of Hardware testing and Software
testing rule and step. This FAT procedure covers all vital system functionality
tests. Propose for in house hardware testing for Kumang Cluster Development
Project; we are ready for the new huge staging for hardware assembly and testing
area. The FAT shall be carried out in the presence of representatives from ICSB
and PCSB-SKO.

The test results and data shall be recorded in the Test Result box with all
representatives' initials. The Problem Log shall be used for recording any
deviation from the design requirements. Corrective actions for certain Problem
Log items may be deferred to a later date, as usual before shipment or after
delivery to site. The Variation List shall be used for recording PCSB request for

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 additional work, modifications and/or deletions that are not based on the approved
documents.
Upon successful completion of FAT, PCSB-SKO shall be requested to sign the
Certificate of Acceptance. This is to certify the Engineering Design Development for
Kumang Cluster Project has been tested successfully based on this FAT Procedure. The
topics to be covered during FAT are shown in Table 1. Details of the individual test are
described in the FAT procedure.

Power Up-Inspection System Panel and Marshalling Panels

Functional Inspection and I/O
Signal Injection
Application Program Logic Test
HMI/Sequence of Event Test
Fault Response Test
System Shutdown Test
DCS and SIS Controller Module
Analog Input Signal (Engineering Value from Analog Input
Simulators)
Digital Input Signal (Simulate Contact)
Digital Output Modules (Lamp indications from Digital
Output Simulators and HMI)
Test On-line Replacement using hot spare modules.
Application Logic as per the P&ID and Interlock Logic
Diagram provided by PCSB -SKO
Verification of HMI Software for Graphic Design
SOE Operational Test/Printout
Refer to FAT Procedures for FGS
Refer to FAT Procedures for ESD

Table 5 FAT topic covered for testing

2.6 Site Installation and Testing

2.6.1 SAT, Hook-Up and Commissioning

Site Acceptance Test (SAT) will be performed at offshore to ensure the
integrity and functionality of the shipped DCS and FGS systems. A pre-determine
series of checks will be demonstrated to the PCSB-SKO that the system meets the
functional requirements of the Prospect Specification. SAT procedure will be

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 provided to the PCSB-SKO for approval and the same document will be used as a
guideline for the testing to be carried out at site. A record of all component
failures and/or software changes is kept, and made available during the SAT.

The topics to be covered during SAT are shown in Table 2. Details of the
individual test are described in the SAT procedure.

Power Up Inspection DCS and SIS System Panels and Marshalling Panels

Based on the Approved I/O Assignment List provided by ICSB.

Loop Check Inspection
Injection of signals up to Control Panels
Table 6 SAT Criteria Check Covered
During the hook-up, a several work needs to be done and it may consist of
hot work and cold work. Due to that, our technicians and engineers are needed to
do all these as per discussing to the PCSB-SKO representative. Finally, the
commissioning team will take part as the warranty for monitoring in case of the
failure during the startup process in the Kumang Cluster Platform.

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3.0 Project Breakdown Structure (PBS) Software
Engineer

Kumang Cluster
Offshore
Development Project

Project Management Engineering and Site

and Planning Procurement Commissioning
and Services

Service
Project Manager Lead Hardware Lead Software Engineer
Design Design
Engineer Engineer

Technician
Project Engineer
Hardware
Engineer

Planner
Technician Technician

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3.1 Organization Breakdown Structure (OBS)

Client/End User:
Petronas Carigali Sdn.
Bhd.-Sarawak
Operation

Project Managers Team

Service &
Commissioning
Technical & Procurement Management
Engineering
Design Manager: Managers:
Planning
Manager: Nurul Azimah Norseha
Manager:
Faizal Abdullah Ext: 3341 Ext: 2333
Mohamad Fani
Ext: 4132 Anis
Ext: 3233
Ext:2334

33
4.0 Schedule Planning

4.1 List of activities for the project is as shown below:

NO. ACTIVITY ACTIVITY EXPLAINATION

Preliminary Design Planning & Research
1 A1 Overview & Requirement Research
2 A2 Customer Specification Study
System Engineering
3 A3 Project Planning
4 A4 Hardware Design
5 A5 Software & Logic Design
Procurement
6 A6 Hardware Purchasing
7 A7 Software Purchasing
Hardware integration & assembly
8 A8 Integrate hardware /software base on System architecture design
9 A9 Assemble, installed and wiring works all the hardware in System panel
Factory Acceptance Test
10 A10 Hardware a test (in house)
11 A11 Software and Logic functionality Test
Site Installation and Testing
12 A12 Panel installation, hook up and wiring
13 A13 Panel power up and Loop Test
14 A14 System interfacing with other systems such as Telecom and sub-systems
Commissioning
15 A15 Full systems test with real Process
16 A16 Tuning and Logic testing
17 A17 Platform Process start-up

Table 7 List of Activities

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4.2 Activity logic table for the plan's progresses are as show below:

DURATION Float
PREDECESSOR ES EF LS LF
(weeks) (weeks
ACTIVITY
1/1/2013 18/2/2013 1/1/2013 18/2/2013
A1 2 Start 1/1/2013 18/1/2013 1/1/2013 18/1/2013 0
A2 3 A1 21/1/2013 18/2/2013 21/1/2013 18/2/2013 0
19/2/2013 27/5/2013 19/2/2013 5/6/2013 0
A3 2 A2 19/2/2013 8/3/2013 19/2/2013 8/3/2013 0
A4 7 A3 11/3/2013 16/5/2013 29/3/2013 5/6/2013 2
A5 8 A3 11/3/2013 27/5/2013 11/3/2013 27/5/2013 0
17/5/2013 25/6/2013 28/5/2013 25/6/2013 0
A6 2 A4 17/5/2013 5/6/2013 6/6/2013 25/6/2013 2
A7 3 A5 28/5/2013 25/6/2013 28/5/2013 25/6/2013 0
26/6/2013 13/8/2013 26/6/2013 13/8/2013 0
A8 2 A6,A7 26/6/2013 15/7/2013 26/6/2013 15/7/2013 0
A9 3 A8 16/7/2013 13/8/2013 16/7/2013 13/8/2013 0
14/8/2013 11/9/2013 14/8/2013 11/9/2013 0
A10 3 A9 14/8/2013 11/9/2013 14/8/2013 11/9/2013 0
A11 3 A9 14/8/2013 11/9/2013 14/8/2013 11/9/2013 0
12/9/2013 30/10/2013 12/9/2013 30/10/2013 0
A12 2 A10,A11 12/9/2013 1/10/2013 12/9/2013 1/10/2013 0
A13 1 A12 2/10/2013 10/10/2013 2/10/2013 10/10/2013 0
A14 2 A13 11/10/2013 30/10/2013 11/10/2013 30/10/2013 0
31/10/2013 18/12/2013 31/10/2013 18/12/2013 0
A15 2 A14 31/10/2013 19/11/2013 31/10/2013 19/11/2013 0
A16 1 A15 20/11/2013 28/11/2013 20/11/2013 28/11/2013 0
A17 2 A16 29/11/2013 18/12/2013 29/11/2013 18/12/2013 0

Table 8 Activity Logic Tabular Table

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4.2 Gantt Chart and Network Diagram

Gantt chart and network diagram for this project are attached in the Appendix.

5.0 Project Estimation and Costing

The project cost is documented into cash-flow statement. The total loan RM 10,000,000
is suggested to the bank with interest rate 10%. It will take duration of twelve months by
company financial to pay the loan to the bank.

Loan payment:

Total loan = RM 10,000,000.00

Interest rate = 10%
Loan payment duration = 12 months (1 year)
Total amount to be paid =10,000,000 x [1 + (0.1)1]
= RM 11,000,000
Yearly = RM 916,667 / month

Thus, the total amount that will be paid to the bank is RM 916,667 per month.

The expenses cost is for this project is repayment loan, manpower cost, service cost, part
and material cost. The repayment loan has been decided previously. The manpower and
service cost is calculated according to the current cost in the market. The part and
material cost consists of three main item; hardware, software and miscellaneous cost. The
utilities and other expenses are covered in the miscellaneous cost.

36
5.1 Man Power Cost
There are two types of man power cost.
- A team of worker from Integrated Control Sdn. Bhd., which consists of Project
Manager, Project Engineer, Hardware and Software Design Engineer, Planner and
Technician.
- Service cost; manpower for site installation, testing & commissioning.
Title Cost Per Hour Cost Per Month Total Cost Duration
Project Manager RM100 RM20,160 RM241,920
Jan-Dec
Project Engineer RM50 RM10,080 RM120,960
Planner RM30 RM4,480 RM53,760 Jan-July
Lead hardware design
engineer RM80 RM17,920 RM71,680
Lead software design
engineer RM80 RM17,920 RM71,680
Hardware design Mac - Sept
engineer RM60 RM12,320 RM49,280
Software design
engineer RM60 RM12,320 RM49,280
Technician RM30 RM6,720 RM26,880
Table 9 Manpower Salary

Duration
Site Visit Number Cost per day Total cost
(days)
Engineer 2 2 RM2,000.00 RM8,000.00
Technician 1 2 RM1,200.00 RM2,400.00
1st Mob (Hotwork activities)
Project Engineers 3 2 RM2,000.00 RM12,000.00
Service Engineers 3 15 RM2,000.00 RM90,000.00
Technicians 3 15 RM1,200.00 RM54,000.00
2nd mob (Demolition &
Installation activities)
Project Engineers 3 2 RM2,000.00 RM12,000.00
Service Engineers 3 21 RM2,000.00 RM126,000.00
Technicians 3 21 RM1,200.00 RM75,600.00
Manpower for Site Testing and
Commissioning at site
Engineers 3 14 RM2,000.00 RM84,000.00
Total RM464,000.00
Table 10 Service Cost
5.2 Part and Material Cost

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 Part and material cost for this project covers the hardware and software material required
for this project, spare parts for 2 years, the system networking, systems documentation
and miscellaneous cost. The detail explanation of the part and material cost are attach in
the appendix (refer BOM).

No Description Total Actual Cost (RM)

1 DCS HARDWARE & SOFTWARE
1.1 Hardware & Software for DCS System 1,969,270
1.1.1 Emerson DCS Delta-V Version 7.0 Hardware 1,757,920
1.1.2 Emerson DCS Delta-V Software and Documentation: 83,400
1.1.3 Accessories Kit 26,800
1.1.4 Recommended 2 years Spares for DCS System 101,150
2 SIS HARDWARE AND SOFTWARE
2.1 System: Hardware & Software Cost 1,755,136
2.1.1 Emerson SIS Delta-V Version 4.8 Hardware 1,599,280
2.1.2 Emerson SIS Delta-V Software and Documentation: 22,200
2.3.1 Accessories Kit 27,456
2.4.1 Recommended 2 years Spares for SIS System 106,200
3 FGS HARDWARE AND SOFTWARE
3.1 System: Hardware & Software Cost 1,329,936
3.1.1 Emerson FGS Delta-V Version 4.8 Hardware 1,174,080
3.1.2 Emerson FGS Delta-V Software and Documentation: 22,200
3.1.3 Accessories Kit 27,456
3.1.4 Recommended 2 years Spares for FGS System 106,200
4 SYSTEM CABINET & MARSHALLING CABINET & LCP
4.1 System Cabinet 541,050
4.1.1 DCS Delta-V Systems Cabinet 368,700
4.1.1 SIS Delta-V Systems Cabinet 136,350
4.1.1 FGS Delta-V Systems Cabinet 98,900
4.2 Marshalling Cabinet 448,050
4.2.1 DCS Delta-V Marshalling Cabinet 308,700
4.3.1 SIS Delta-V Marshalling Cabinet 109,350
4.1.1 FGS Delta-V Marshalling Cabinet 72,900
4.3 Local Control Panel 27,950
4.3.1 SIS Local Shutdown System Control Panel 27,950
ENGINEERING WORKSTATION/SERVER & NETWORK
5
ACCESSORIES
5.1 Engineering Workstation 104,320
5.2 Network Accessories 8,900
6 Documentation & Miscellaneous Cost

38
6.1 Systems Documentation & Miscellaneous 800,000
7 PACKING, INSURANCE AND LOCAL TRANSPORTATION
7.1 Packing, Insurance and Transportation 27,000
Total 7,011,612
Table 11 Part and Material Cost Summary

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 5.3 Financial Estimation

The table below shows the estimated cash-flow statement for Integrated Control Sdn. Bhd. project. The project is estimated to be
completed in one year. All cost currency is in Ringgit Malaysia (RM).

Description Months
(RM) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Handover
Initial pay (30%) After approve drawing (20%) FAT (20%) SAT (20%)
(10%)
Income
Payment 1,200 1,200 1,200 600, 600, 60 60 1,2 1,2 1,2 1,2 1,20
from client ,000 ,000 ,000 000 000 0,000 0,000 00,000 00,000 00,000 00,000 0,000
Carry 10,000 10,218 10,437 10,622 10,173 8,9 7,7 6,5 5,8 5,2 4,4 3,60
forward ,000 ,613 ,227 ,240 ,653 27,215 14,376 01,537 93,179 84,820 44,461 4,103
11,200 11,418 11,637 11,222 10,773 9,5 8,3 7,7 7,0 6,4 5,6 4,80
Total
,000 ,613 ,227 ,240 ,653 27,215 14,376 01,537 93,179 84,820 44,461 4,103
Expenditure
Man power
34,720 34,720 68,320 101,920 68,320 34,720 34,720 30,240 30,240 30,240 30,240 30,240
cost
Material cost
(Hardware 30,000 30,000 30,000 30,000 861,452 861,452 861,452 861,452 861,452 861,452 861,452 861,452
& Software)
Service Cost 0 0 0 0 0 0 0 0 0 232,000 232,000 0
Loan
916,667 916,667 916,667 916,667 916,667 916,667 916,667 916,667 916,667 916,667 916,667 916,667
repayment
Total
981,387 981,387 1,014,987 1,048,587 1,846,439 1,812,839 1,812,839 1,808,359 1,808,359 2,040,359 2,040,359 1,808,359
expenditure
Total cash
10,218,613 10,437,227 10,622,240 10,173,653 8,927,215 7,714,376 6,501,537 5,893,179 5,284,820 4,444,461 3,604,103 2,995,744
position

Table 12 Estimated Cash-Flow Statements

The increasing month shows a positive of total cash position.

40
5.4 Financial Model

Since the 10% interest rate is proposed to the bank in order to make loan payment and the
total loan plus interest is estimated to be fully paid within a year, hence the payback
period, average monthly profit and return on investment are as shown below.

Projected Cash Flow (RM)

Month
Revenue Net Gain (RM)

0 (11,000,000.00)
1 1,200,000 1,200,000
2 1,200,000 2,400,000
3 1,200,000 3,600,000
4 600,000 4,200,000
5 600,000 4,800,000
6 600,000 5,400,000
7 600,000 6,000,000
8 1,200,000 7,200,000
9 1,200,000 8,400,000
10 1,200,000 9,600,000
11 1,200,000 10,800,000
12 1,200,000 12,000,000
Payback period 12 month
Total gain (RM) 12,000,000
Table 13 Payback Period

The loan is estimated to be fully paid during the 12 month (1 year). There is no discounted
cash flow involves due to the 1 year full payment plan.

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 Return of Investment (ROI)

Average monthly profit = 12,000000-11,000000 = RM83,333.33

12
ROI = 833,333.33 x 100% = 0.76%
11,000,000

The ROI shows that this project will have 0.76% return of investment with an average of
RM83,333.33 monthly profits.

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6.0 Discussion
Integrated Control Sdn. Bhd. is an established company which specialized in
Instrumentation and Control system engineering for oil and gas and process industries as
Systems Integrator. The Kumang Cluster Development Project is a project to supply of control
systems for a new offshore platforms project, by Petronas Carigali Sdn Bhd-Sarawak Operation.
This project will take one year from January 2013 until December 2013, to be
completed. The project has seven phases to be implemented; preliminary design planning and
research, engineering, procurement, hardware integration and assembly, factory acceptance
test, site installation and testing, and commissioning. All seven phases is described under work
breakdown structure (WBS).
Mostly, the activities are in critical path which they must be completed within the
schedule. However, there are two activities that are allowed to have two weeks of slack; the
hardware design and hardware purchasing activities. Both hardware design and software
will be started after the completion of project planning.
Hardware design is firmly based on the customer requirements while software design
is related to the logic that functional as the brain for the automation process control systems
thus making the software design more critical than the hardware design task. The critical
activities therefore need to be completed as in plan to prevent the waste of time and cost of
the project progress. Thus, engineers need to work hard to achieve the project objective.
Initially, the loan RM10,000,000 is proposed to the bank with 10% interest rate. In
order to observe the company profit, thus the cash-flow estimation table is built. The loan is
estimated to be fully paid in one year, thus no discounted factor involves in the calculation
made. The ROI shows that this project will have 0.76% return of investment which will
bring an average of RM83,333.33 monthly profits to the company.
The total client payment of RM12,000,000 will be received in five stages; 30% for
initial pay during the project commencing, 20% after drawing approval, 20% after factory
acceptance test (FAT), another 20% after site acceptance test (SAT) and the last 10% during
project handover at the end of the project. The cost is not to exceed RM12,000,000. This
includes the initial project planning, design and engineering, installation and testing, and
also commissioning and site services.

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7.0 Conclusion

This proposal shows the design and implementation processes of the Kumang Cluster
Development Project. It is a project to supply of control systems for a new offshore platforms
project, by Petronas Carigali Sdn Bhd-Sarawak Operation. This project will take one whole year
to be completed, from January 2013 until December 2013. The project has seven phases to be
implemented; preliminary design planning and research, engineering, procurement, hardware
integration and assembly, factory acceptance test, site installation and testing, and
commissioning. The loan is estimated to be fully paid in a year. The ROI shows that this project
will have 0.76% return of investment which will bring an average of RM83,333.33 monthly
profits to the company.

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 APPENDIX

1. Bill of Material
2. Project Gantt Chart
3. Project Network Diagram

45