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Amcompressed 12913212057276 Phpapp02 PDF
Amcompressed 12913212057276 Phpapp02 PDF
BARON
Today’s Projects:
Challenges & Key
factors of success
Hervé Baron
Nov 29th, 2010
HERVE Today’s Projects:
BARON
The main challenges and the Key factors of
success
• Technical ?
• Cost ?
• Quality ?
• Schedule ?
• Size ?
• Safety
HERVE
BARON
What are the main challenges ?
Technical?
The processes and technology are proven, no prototype.
Quality:
The project execution systems are well developed and standardized: vocabulary,
methods and tools (planning, progress measurement, management of change, plant
mechanical completion etc.) and fairly standard throughout the industry.
Cost?
Lump Sum Contract: quantities increase & market conditions risks with
CONTRACTOR. Precise specifications, list of approved vendors make the Contract
well nailed down for Company.
Schedule:
Large projects must now be completed in 36 months vs 45 months a few years ago.
Schedule risk is with CONTRACTOR: both liquidated damages and time related
costs
HERVE
BARON
What are the main challenges ?
Size:
Not human! Mega LNG Project 75,000 tons of equipment, 42,000 tons of steel (6
Eiffel towers!)
Multiple and ever changing actors, e.g. Engineering home office+ low cost centers
Construction is sub-contracted
Safety challenge
Mega Projects
25,000 people at peak, 80 nationalities
Various levels of education, supervision, time pressure
Schedule:
=> adapt to concurrent rather than sequential execution
• Get the design input early… but get it right!
• Avoid changes and re-works
• Integrate the E, P and C work processes
Size:
=> Develop and implement precise controls
• Know your actual progress!
• Control your suppliers and sub-contractors
HERVE
BARON The Past: sequential execution
ENGINEERING Drawings
Bill of
materials
PROCUREMENT
CONSTRUCTION
HERVE
BARON Today: concurrent execution
ENGINEERING
PROCUREMENT
CONSTRUCTION
HERVE
BARON Today: concurrent execution
ENGINEERING
PROCUREMENT
CONSTRUCTION
Tightened schedule changed the execution from sequential to concurrent.
This drove the project to sharpen controls over its execution: identify and focus on critical path,
pro-actively manage interfaces etc.
HERVE
BARON Today: concurrent execution
ENGINEERING
Bill of Bill of
Materials 1 Materials 2 Drawings 1 Drawings 2
PROCUREMENT
CONSTRUCTION
Derived challenges:
• Get the design input early
• Avoid changes and re-works
• Integrate the E, P and C work processes
HERVE
BARON Today: concurrent execution
ENGINEERING
Bill of Bill of
Materials 1 Materials 2 Drawings 1 Drawings 2
PROCUREMENT
CONSTRUCTION
Engineering/Procurement interface:
Close coordination for anticipated orders and revision of quantities, including cancellation etc.
Engineering/Construction Interface:
Prioritization based on start-up and construction sequence
Understanding of mutual needs, agreement on deliverables
Regular up-dates (work volumes and delivery schedule) by Engineering to Construction
Integration of tools (IT)
HERVE
BARON Getting the design input early
Process Equipment
simulations list & duty
Equipment
inquiry &
Cooler
selection
Foundation
drawings
HERVE
BARON But get it right!
Engineering must be right first time, which requires experience, good
coordination between disciplines and anticipation
Safety valves
duty
Safety valves
location & piping
routing
Piping calcs &
supports
Supports Steel structure
& loads estimates design and
drawings
Purchase steel
Fabrication
Shipping Structure
at Site
HERVE
BARON Learn more, much more on Engineering
270 pages
300 illustrations
HERVE
BARON Learn more, much more on Engineering
Table of Contents
HERVE
BARON Learn more, much more on Engineering
http://www.editionstechnip.com/en/catalogue-
detail/1111/oil-gas-engineering-guide-the.html
HERVE
BARON Integrate the work processes
Develop Engineering /
Construction synergies
• Constructability reviews
• Pre-fabrication
• Engineering schedule to
match Construction
priorities/sequences
• Engineering deliverables
tailored to construction
execution needs
HERVE
BARON Avoid changes
Sources of changes:
• Inherited/Open technical issues
• Design development & Reviews
• Client’s new requirements
• 3rd party at interface
Avoidable/
Unavoidable ?
The principles:
• Draw the list of work items, total = 100%
• Actual progress = Σ individual progress over all work items
The challenge:
• The list of work items keeps changing – difficulty to keep track
• The total work volume (100%) keeps changing
• Increase by up to 30-50% are common
The keys:
• Overall progress from detailed breakdown by individual work item/steps
• Monitoring from up-to-date list of work items
HERVE
BARON Set-up an accurate progress measure
If :
• its derives from progress of
elementary work items,
• It reflects the true work volume,
i.e., is based on up-dated list of
work items,
How to monitor construction progress, the case of Electrical cables for a FPSO:
254 km of Electrical cablesto pull, gland, terminate. What is the progress?
HERVE
BARON How are the electrical works doing?
Σ
HERVE
BARON
Control your suppliers and sub-contractors