Project Control in Oil and Gas Project

Project Control
Welcome to this tutorial
It shows the practical ways and tools to control the progress of an Oil &
Gas Project.
Please download this file so that you can see my trainer’s notes in the top
left corner – latest Acrobat Pro feature.
© 2015– Hervé Baron

Hervé
Project Control
Please download this file so that you can see my trainer’s notes
in the top left corner – latest Acrobat Pro feature.
Place your
mouse over
here

Project Control
Please download this file so that you can see my trainer’s notes
in the top left corner – latest Acrobat Pro feature.
Place your
mouse over
here

Project Control
 Delayed Project completion are common place
What are your bad / good experiences?
Phase What happened? Why? How to prevent this?
Engineering
Procurement
Construction

Project Control
 Delayed Project completion are common place
Phase What happened? Why? How to prevent this?
Engineering Engineering unable Lack of information Early placement of POs,

to progress from vendors identification + penalty
for late dwgs, follow-up
Procurement Supplier is late Supplier overloaded Ensure proper progress
data is requested, attach
Purchaser progress to payments
control not effective
Construction Construction Lack of accurate Accurate (detailed) step-
behind plan progress control wise item-wise progress
Under estimation of Eng/Constr interface

certain trades

Construction Timely completion Incentive put in place N/A
of hydrotests
Training Objectives
 Share Good practices, highlight meaningful information and

good practices in:
• Planning
• Scheduling
• Progress measurement
 Provide you with benchmarks, to enable you to control the

execution of your CONTRACTOR

Training Agenda
 The plan
• The Principle
• Planning assumptions
 The schedule
• Schedule integrity
 Monitoring the compliance to the schedule

• Leading
• Lagging
 Progress measurement & control

• General

• Engineering
• Procurement
• Construction
Training Agenda
 The plan
• The Principle

Training Agenda
 The plan
• The Principle
− The contractor/supplier draws its plan as per its workprocess
− Risks should be identified
− The client reviews the plan
− The client monitors achievement against the plan
− Recovery/acceleration actions are identified

Training Agenda
 The plan
• The Principle

Project Control: Starting point
 The plan

 Basis of the schedule

What are these assumptions

for an EPC Project?

• Quantities
• Productivities
• CPY/Third party approvals
• Purchasing cycle
• LLI lead time
• Other eqt and bulk lead time
• Steel structures lead time
• Transportation duration
• TSF/camp
• Early works
• Pre-fab

• Heavy/large equipment Lifts
• Type of foundations
• Commissioning sequence: Power > Utilities > Process
Oil & Gas Projects Most likely critical path
What is the most likely critical path of Oil & Gas Projects?

Most likely critical path

Source: “The Oil & Gas Engineering Guide”, 2nd Edition, 2015, Hervé Baron, Editions Technip
Most likely critical path
For the explanation and justification of the most likely critical path, please refer to:
”The Oil & Gas Engineering Guide”, 2nd Edition”, Hervé Baron, Editions Technip, Mars 2015
http://www.editionstechnip.com/en/catalogue-detail/1111/oil-gas-engineering-guide-the.html

Training Agenda
 The plan
• The Principle
 The schedule

Training Agenda
 The plan
• The Principle
 The schedule
What would you review in the CTR proposed initial schedule?

Schedule integrity
• No lags (which cannot be statused during schedule up-dates): to be
replaced by activity
• No open end, i.e., no activity without a predecessor, except Project
Start, no activity without a successor, except Project Finish
• No fixed constraints
• Resource levelling has been done
• Critical paths
• Compliance with CONTRACT Milestones, intermediate CD
• Float
• Number of critical activities (10-15%)

• Schedule logic
Schedule integrity
• No lags (which cannot be statused during schedule up-dates): to be
replaced by activity
• No open end, i.e., no activity without a predecessor, except Project
Start, no activity without a successor, except Project Finish
• No fixed constraints
• Resource levelling has been done
• Critical paths
• Compliance with CONTRACT Milestones, intermediate CD
• Float
• Number of critical activities (10-15%)

• Schedule logic
Checking the schedule logic: typical FEED Engineering schedule
Source:
“The Oil & Gas Engineering Guide”, 2nd Edition, 2015,

Hervé Baron, Editions Technip
http://www.editionstechnip.com/en/catalogue-
detail/1111/oil-gas-engineering-guide-the.html

Checking the schedule logic: typical EPC Engineering schedule
Source:
“The Oil & Gas Engineering Guide”, 2nd Edition,

2015, Hervé Baron, Editions Technip

Training Agenda
 The plan
• The Principle
 The schedule
How would you ensure compliance with the schedule?

Training Agenda
 The plan
• The Principle
 The schedule

• Leading: look-ahead schedule / “to do” list
• Lagging: review schedule up-dates

Example: FEED Project / Schedule set-up and monitoring

Follow-up: the weekly “to do” list

Training Agenda
 The plan
• The Principle
 The schedule

• Leading: look-ahead schedule / “to do” list
• Lagging: review schedule up-dates

Schedule up-dates: Milestones status review

Schedule up-dates
 Review of she schedule up-dates

• Late actual starts % S slips, Avg # days delay
• Late actual finish % F slips, Avg # days delay
• Change of logic nb logic changes
• Change of duration
• Increase in number of activities with total float < 50 days
• Increase in number of activities with total float <= 0 days
• Change in critical paths

Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering
• Procurement
• Construction
Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering What is the worst measure of progress?
• Procurement
• Construction
Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering What is the worst measure of progress?
• Procurement Manhours spent
• Construction
Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering Physical progress is better… here is how
• Procurement we measure it
• Construction
Progress Measurement/The principles
 The various activities of a Project are weighted as per their $ value (common
denominator).
 They are broken down in elementary tasks, the progress of each one if tracked by work
steps. For instance, procurement of an equipment: 10% for placing of PO, 50% for raw
material at supplier’s shop etc.
 The Individual progress of each task are then integrated to give the overall progress.
 The schedule information (planned date for each of these activities/tasks) gives the
planned progress for each cut-off date and allows to compare planned vs actual
progress

Progress Measurement
 The graphical depiction of the planned progress is the “S” curve,

 Plotting the actual progress allows to identify delay and cruising speed

Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering
• Procurement
• Construction
Engineering Progress



What additional information do you need to assess Engineering
progress performance?
What conclusions do you derive from the above Progress table?


What additional information do you need to assess the reason for
the lag in Process progress?
Process Progress vs Manhours

In your opinion, what is the reason of the lack of progress?
Safety Engineering

In your opinion, how is Safety performing?
Engineering Progress Measurement
Know the limits of the % Progress measurement system

• based on manhours, not on criticality
• uses “internal progress steps”, such as “Started”, “IDC” difficult to
check
• Rather theoretical
Actual progress > Planned but the Project may still be in delay
It shall not be the only measure of progress…
Another way to measure progress?


check

Milestones!

Source:
“The Oil & Gas Engineering Guide”, 2nd Edition, 2015, Hervé Baron, Editions Technip
=> Request the schedule

up-dates to contain the
status of these MS


check


check

Workfront curves
Available work front

Available work front

How many such workfront curves do you draw?
Factors that could delay Engineering
 Be vigilant with respect to the factors that can impact the

schedule
• delay in critical vendor drawings => check delays in submission are
penalized in POs, monitor timely submission


schedule

Source:

schedule

Source:

schedule
• dragging pending technical issues, delays will lead to re-work =>
ensure resolution is expedited
• pending open points, e.g. deviation requests => demand a log and its
up-date
• delay in implementation of HAZOP, 3D model review, P&ID review
action points => ask for monthly status
 Delays in the definition of interfaces with third parties => demand

and check status

 Transfer from home office Engineering center to satellite office =>
check hand-over plan, detailed work instruction issued describing
work to be done, tools to be used, deliverables to be issued,
check adequate follow-up
Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General
Wrap-up: the Project Control

• Engineering
dashboard of the Project during
• Procurement Engineering phase….
• Construction
Project Control dashboard
Source:

Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering
• Procurement
• Construction
Procurement Progress

Procurement progress control
How do you measure Procurement Progress?

 % Progress
 Milestones
What are the meaningful Procurement progress Milestones?

Procurement schedule Benchmarks
 All LLI POs placed

• Month 3
 Last GADs for LLI Equipment

• Month 9
 1st Piping Inquiry

• Month 6
 1st Piping PO
• Month 10
 Last Equipment PO
• Month 10

Procurement follow-up table
Item RFQ BCD TBT Clarif PO Ex- ROS

Works
TC
GTG
Centrif
pumps
Piping bulk
Etc.

Critical Equipment
In your opinion, which equipment are critical?

Critical Equipment
 LLIs
How are LLI identified?

Critical Equipment
 LLIs
How are LLI identified?

Which other equipment are critical?

Critical Equipment
 LLIs
 Equipment critical for site delivery

• Heavy or high and large Equipment, for
heavy lift
• Columns requiring pre-dressing
• Pressure vessels for nozzles availability for
Piping erection

Critical Equipment
 LLIs

• Heavy or high and large Equipment, for
heavy lift
• Pressure vessels for nozzles availability for
Piping erection
What else?

Critical Equipment
 LLIs

• Heavy or high and large Equipment, for heavy lift
• Pressure vessels for nozzles availability for Piping erection
 Equipment critical for vendor information

• Rotating
• Packages
• Fired Equipment

Procurement benchmarks
 Purchasing cycle: from inquiry to PO
 Lead Time
• Equipment (except LLI): 10-18 months
• Piping Bulk: 7 months for pipe, 8 months for fittings, 9 months for
valves
• Electrical equipment: 10-16 months
• DCS: 17 months (including FAT)
• Control - Safety - On/Off Valves: 9 to 12 months
 Transportation

Supplier Progress Control
 The principle:
• A supplier draws its schedule
• The Purchaser monitors compliance
 Critical points
• Learn the work sequence: different actors, critical activities
• Monitor closely: you get what you inspect, not what you expect!
 Monitor, i.e. upon receipt of progress report:

• Analyze the data critically,
• Identify bottlenecks,
Progress Report
• Draw list of actions required from the supplier

• Request supplier to implement mitigations
Ensure the supplier puts the priority on your job!

Supplier’s workprocess and reporting tool

Exercise: analyze the steel structure manufacturer’s reports and draw

conclusions and recommendations


How are the various parties involved performing? What would you recommend?
• Drafting office
• Planning Dept
• Fab shop
• Galvanizer
Incident in supply – case study
CTR Material Requisition specifies flanged valves as per CPY spec
 Vendor offer is based on sandwich type, without flanges, this

point is not picked up by purchaser during bid review & clarif
 The PO is placed with reference to the MR, supplier acknowledges

the PO without comment
 Vendor drawing, showing valve without flange, is approved by

purchaser
 CPY identifies the issue and requests compliance
 This comes very late => 1 year delay + > 1m USD extra cost

In your opinion, how will the problem be solved? Who will pay?
Training Agenda
 The plan
• The Principle
 The schedule

• Leading
• Lagging

• General

• Engineering
• Procurement
• Construction
Construction progress

Construction progress
How to monitor construction progress, the case of cables for a FPSO:

254 km of Electrical cables, 166 km of Instrument cables and 69 km of Telecom cables to
pull, gland, terminate. What is the progress?

Construction Reporting: overall progress


How to get an accurate progress of each trade?

How to get an accurate progress of each trade? Break the work in
elementary steps.
Piping progress
You must have a report down to
elementary steps, i.e., status of each
weld for piping, to actually monitor
progress.

E&I cable progress
Individual item (cable) and work step (pull/gland/terminate) status

Work steps
For various construction activities
 Foundations
• Excavation / Re-bar / Formwork & Anchor bolts / Concrete Placing / Backfill
& Compaction
 Pre-cast concrete
• Re-bar / Formwork / Concrete Placing / Excavation / Installation / Backfill
 Steel Structure
• Main steel erection / Bolting & Alignment / Grating / Hand rails, ladders,
stairs /QC release (punch cleared)
 Equipment installation
• Pump, Skid: Chipping & padding / Rigging / Leveling & Grouting / First
alignment

• Pressure vessel: same + Stage & ladders / Internals / Clean-out & box-up /
Final check
• Air-Cooler: Structure / Tube bundle / Mechanical part / Alignment
Work steps
Example: PR column
Column pre-casting
Preparing the foundation to Chipping process to enhance bond

receive the Column between column and foundation Erecting the Column

Holding the Column Mixing the Grout Mixing the Grout Pouring the Grout
with shims
Construction pre-requisite
 Start activities at Site

• Camp and TSF installed
 Start Civil works

• Batching plant ready + on-spec
 Start Piping Pre-Fab

• WPS and Welders qualified
 Start loop tests

• Buildings completed incl. HVAC
• DCS installed

Construction schedule Benchmarks
 Start Civil works with good productivity

• 30% IFC dwgs
 Start Piping Pre-Fab

• 50% IFC ISOs
• 70% Material (all types) delivered
 Start Piping erection

• 30% Piping pre-fabricated
 Piping erection cruise

• 60% Equipment erected
• Civil works completed - area backfilled

Construction
 The sub-contract arrangement:

• Sub-contractor is paid installed quantities x agreed rates

Construction


Construction

• This is regardless of resources employed
• Hence productivity risk lies with sub-contractor
Can you identify the conflict of interest?

Construction

• This is regardless of resources employed
• Hence productivity risk lies with sub-contractor
Can you identify the conflict of interest?
How would you avoid this conflict of interest?

Construction
 Good Engineering / Construction communication

• regular up-dates of work volumes to construction contractor for proper
planning by SUB and avoid idle resources
Check what information (list of steel structures, MTO with work volumes
etc.) is exchanged and how frequently
 Engineering commitments to construction contractor
• check the schedule commitments in construction sub-contracts for date
of issue of drawings and delivery of equipment and materials (Work Time
Schedule Exhibit of Sub-Contract)
• Monitor the achievement of these commitments by the EPC contractor
Control the timely deliveries of the EPC to its SUBs

Good Engineering / Construction work process intergation


• transfer of design ISO to construction contractor for spooling
• organization for pipe supports mass and on-time fabrication
Schedule commitments in sub-contract: sample

Project Control
Thank you for having gone through this tutorial
It deals only with control of progress, i.e., schedule, but remember that if
you are on-time you will also be on-budget as you will not need to
extend mobilization of people and equipment!
I will be happy to receive your comments which I will include after your
agreement.

Hervé
mailto:Hervé.baron@gmail.com
The Oil & Gas Engineering Guide - 2nd edition
Interested and wanting to know more on Engineering?
A unique synthesis for the

busy Project professional
 270 pages
 300 illustrations

Table of Contents
Discipline presentation:
activities and
deliverables
The overall process

Methods & tools
Table of Contents
Discipline presentation:
activities and
deliverables

The work of each Engineering
discipline is described

Design activities are
explained, e.g., Plant
Equipment layout

Complex activities, such as
QRA, are explained through a
practical example.

How are materials of
construction selected ?

How and when are Piping
Materials ordered?

A sample of all common
Engineering documents is
included

A sample of all common
Engineering documents is
included
Use this to specify what you

want to your Engineering
supplier !

Verify the contents of
engineering documents
with check lists.

Difference between
Engineering and Shop
drawings

Understand the main
technical aspects, e.g., DCS
vs ESD

The common 2 types of
package control

The different Plant drainage
systems

The dynamic forces to
which an Off-Shore
Plant is subject

Table of Contents
The overall process

Use this as standard,
question deviations.

Understand the new
3D-model centered
engineering process

Know the interfaces
between disciplines...
and with Vendors

Understand what drives
the Project schedule

Table of Contents

Methods & tools
Use these methods as
standard, question
deviations.

Implement powerful
procedures

Request meaningful progress
reports

Implement effective Project
Control

Date of publication: March, 2015.
This book is destined to both:

 Oil & Gas companies Project execution personnel
 Oil & Gas contractors Project execution personnel

The Oil & Gas Engineering Guide
2nd edition
If your are on the Client side, i.e., contracting Engineering services,

this book will help you to:
 Specify to an Engineering supplier what you want: what

deliverables and with what contents,
 Set a standard in Engineering execution that you and your

supplier can adhere to: design stages/gates, methods to be used,
etc.
 Specify the progress report you want, with the meaningful

indicators,

 Ask the right questions to assess the true progress,
2nd edition
If your are on the Contractor side, i.e., performing Engineering

activities, this book will help you to:
 Understand the work of each discipline and the overall picture,
 Challenge what one discipline tells you,
 Understand the critical areas,
 Put in place the right methods to be successful,

2nd edition
Order direct from the publisher:
http://www.editionstechnip.com/en/catalogu
e-detail/1111/oil-gas-engineering-guide-
the.html

Project Control in Oil and Gas Project

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Project Control in Oil and Gas Project

Uploaded by

Copyright:

Available Formats

Project Control

Welcome to this tutorial

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

 Delayed Project completion are common place

What are your bad / good experiences?

Phase What happened? Why? How to prevent this?

© 2015– Hervé Baron

 Delayed Project completion are common place

Phase What happened? Why? How to prevent this?

Engineering Engineering unable Lack of information Early placement of POs,

Under estimation of Eng/Constr interface

© 2015– Hervé Baron

 Share Good practices, highlight meaningful information and

 Provide you with benchmarks, to enable you to control the

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

 Progress measurement & control

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

 Basis of the schedule

© 2015– Hervé Baron

 Basis of the schedule

What are these assumptions

© 2015– Hervé Baron

 Basis of the schedule

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

What would you review in the CTR proposed initial schedule?

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

“The Oil & Gas Engineering Guide”, 2nd Edition, 2015,

© 2015– Hervé Baron

“The Oil & Gas Engineering Guide”, 2nd Edition,

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

How would you ensure compliance with the schedule?

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

© 2015– Hervé Baron

© 2015– Hervé Baron

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

© 2015– Hervé Baron

© 2015– Hervé Baron

 Review of she schedule up-dates

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

 Progress measurement & control

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

 Progress measurement & control

© 2015– Hervé Baron

 Monitoring the compliance to the schedule

 Progress measurement & control

© 2015– Hervé Baron