Wood Group

January 2015

Engineering Excellence
Guide
Wood Group Engineering Excellence Guide

1.0 Foreword
Contents
We have a proven track record of successfully delivering
1.0 Foreword 2 world-class engineering solutions for our clients over many
2.0 Vision and mission 2 years. Continuous improvement and consistency in
engineering excellence are cornerstones to our engineering.
3.0 Overview 3
The Wood Group Engineering Excellence Guide (EEG) has
3.1 Framework 3
been prepared in conjunction with a team of senior engineers
3.2 Engineering Excellence performance and executives from across businesses within Wood Group
elements 4 Engineering and Wood Group PSN. The content represents
the collective wisdom of all contributors and has been
3.3 Application of the Guide 4 endorsed by senior executives of Wood Group Engineering
3.4 Engineering Excellence stewardship 5 and Wood Group PSN.
3.5 HSE stewardship 6 The EEG is to be implemented with stewardship from project
4.0 Engineering Excellence performance managers and engineering authorities within the businesses.
Engineering Excellence is core to the delivery that Wood
element principles and best practice
Group businesses offer to our clients – achieving this in a
guidance 6 consistent, transparent and sustainable manner will create
4.1 Management 6 distinction in the marketplace.

4.2 Client alignment and interface I am therefore sure that you will find the EEG principles and
best practice guidance to be of real value to your business in
management 6
terms of enhanced service delivery, once it is fully
4.3 Competency and training 7 implemented.
4.4 Basis of design 7 Mike Straughen, Group Director Engineering
4.5 Design integrity 8
4.6 Operational integrity and availability 8
2.0 Vision and mission
4.7 Development and deployment of new
The Wood Group EEG has application to all stages of a
technology 8
project.
4.8 Quality 8
Vision: to deliver engineering excellence wherever we
4.9 Risk management 9 operate.
4.10 Knowledge management 9
Mission: to leverage the engineering expertise within Wood
4.11 Project services 9 Group businesses to deliver, for our clients, engineering
4.12 Contracting and procurement 10 excellence in technology deployment and project execution.
Within Wood Group engineering businesses the stage-by-
stage structure for delivery of projects flows from concept
Appendix
through FEED and detailed design to construction and
Glossary/abbreviations 11 commissioning to operate and, for some assets,
decommissioning. It is recommended that in the absence of
a client-preferred project stage gate process, the below Wood
Group project stage definition structure is adopted:

Project Stages

Project Stages

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Wood Group Engineering Excellence Guide

3.0 Overview 3.1 Framework

The Engineering Excellence Guide (EEG) is to be used in The content of the EEG recognises and respects that
conjunction with Wood Group’s Business Ethics Policy, Wood engineering will be subject to regulation from international and
Group’s HSE Management System Standard, individual national authorities and that some clients may require the
business governance procedures and client-specific implementation of their company standards.
requirements. Its aim is to provide business leadership and
engineers with a common framework to achieve consistent
performance in the various stages of project development from Engineering Excellence Framework
concept to decommissioning. The EEG details across a range
of engineering and project performance elements a set of
principles which shall be followed plus supporting engineering
and project best practice guidance.* The hierarchy structure of
the EEG across Wood Group’s engineering businesses is
shown below:

Engineering Excellence Hierarchy

3.2 Engineering Excellence performance elements

Across the Group’s Engineering businesses there are 12
performance elements to guide work delivery in all stages of a
project:

1. Management
2. Client alignment and interface management
During the initial stages of a project, the project manager and 3. Competency and training
the designated business Engineering Authority (EA) will agree 4. Basis of design
planned implementation of the EEG. Any exceptions to the 5. Design integrity
principles are to be recorded in the project deviation register. 6. Operational integrity and availability
Application of the guide’s best practice guidance is 7. Development and deployment of new technology
recommended. The EEG scope is to provide high level 8. Quality
guidance for engineering and project delivery. Detailed 9. Risk management
procedures for engineering projects are provided by the 10. Knowledge management
businesses. It is the responsibility of each individual working 11. Project services
within the businesses to ensure they are working to the latest 12. Contracting and procurement
revision of business procedures and processes.
This framework of guidance is to be viewed as complementary
* Refer to Editor’s note in Section 4.0. to the framework of governance provided by procedures and
processes within each Group business although it may differ in
terms of document titles and grouping. Any conflict should be
reviewed with the business EA.

SAF/C/3.2 January 2015 Wood Group 3

Wood Group Engineering Excellence Guide

3.3 Application of the Guide

The EEG does not differentiate between greenfield and

brownfield projects since the deployment and delivery of
engineering excellence is to be consistent. The EEG is to be
applied to all stages of a project from concept studies to
decommissioning (see below diagram):

Project Stages

Detailed within the project stage gate diagram are prime Application of the EEG to each project or project stage is to be
engineering and project activities for different types of projects: considered by the project manager. Any exceptions to the
greenfield, brownfield and operational support. Typical client performance element principles are to be registered and
decision points are also included. The project manager shall endorsed by the businesses’ EA.
confirm the project stage to be worked on and, for projects
which cover a number of stages, a breakdown of the work
scope into stages is recommended with a transition approval
process between the project stages.

4 Wood Group SAF/C/3.2 January 2015

Wood Group Engineering Excellence Guide
As part of a stage gate management process, it is
recommended that engineering design reviews are undertaken
on a continuous basis and at least prior to work stage
commencement and ahead of work stage completion. These
reviews are to be sponsored by the project manager, who is
accountable for overall project delivery, and should involve all
disciplines. The reviews can form part of the weekly meetings
or, in more complex projects, involve staff external to the
project. The type of review and frequencies are to be set by the
project manager in consultation with the EA(s), with reference, if
available, to a project risk assessment.
Nomination of review team members should reflect the best
access to knowledge from within the business and from across
the Wood Group businesses. When more formal reviews are
undertaken, it is suggested that client participation is
encouraged to provide transparency and alignment.
Review findings are to be assigned to a responsible person to
action mitigation and the project manager is to be accountable
for ensuring actions are closed out in a timely manner. The EA
is to provide assurance to the business leadership that the
review process is robust and that any lessons learned are
communicated to engineering and project leaders.
Typical Engineering Integrity Management Stewardship Model
Engineers are to be encouraged to proactively mitigate work in
a holistic collaborative manner and always seek out ways to
add value to the client and the Group business risks,.
3.4 Engineering Excellence stewardship
Each Wood Group engineering business will appoint EA(s) who
will have accountability for the quality and integrity management
of engineering undertaken within the business.
It is expected that the EA(s) will be appointed from a senior
engineering management position within the businesses.
Where businesses have multi-business units, separate
governance oversight for engineering and project management
or significant presence in more than one location, the
appointment of more than one EA is to be evaluated.
The operating structure for the EA(s) will typically be based on a
matrix with senior EA(s) reporting to the business executive.
The EA(s) are to have ownership of all engineering procedures
and are accountable for providing assurance to the business
executive regarding their implementation into projects. Where
businesses have small and developing projects and
engineering resources, it may be appropriate for that location to
be hosted by a prime resource centre (see below diagram):
SAF/C/3.2 January 2015 Wood Group 5
Wood Group Engineering Excellence Guide

The EA, in consultation with the business leadership, will

appoint Discipline Technical Authorities (DTAs) who will be
embedded within projects and are likely to have a lead
discipline role in addition to DTA responsibilities. For remote
locations without an EA presence, a DTA shall be nominated to
work with a designated prime resource centre EA to provide
engineering integrity assurance. In addition to the appointed
EAs and DTAs, some businesses may elect to appoint Subject
Matter Experts (SMEs) to steward excellence in a particular
engineering field.

Within each business it is recommended that, subject to

competency assessment, single nominations are made for
DTAs at each prime location. SMEs are to be appointed for
each prime subject and they may have responsibility across
multi-locations.

The appointment of an EA and DTAs will create a sustainable

and transferable delivery structure for engineering integrity
assurance within Wood Group engineering businesses. It will
also offer engineers a technical route to the business executive
if it is necessary to highlight concerns related to technical
design or integrity. In some businesses the leadership may
elect to nominate DTAs for Project Services and Contracting
and Procurement to provide stewardship for the application of
project tools and business-wide integrated systems.

Editor’s note: Project managers are accountable for overall project

delivery and, in conjunction with the business EA(s), have joint
accountability for engineering integrity management. The project
manager is accountable for engineering integrity within the project;
the EA(s) are accountable to the business executive for providing
independent assurance on project performance as outlined in this
guide and are to have access to projects to undertake this role.
Based on a project risk ranking, or as required by business
procedures, projects may be subject to independent reviews
overseen by the EA.

3.5 HSE stewardship

Wood Group’s Safety & Assurance Core Value,

HSE Management System Standard and Integrity Management
Guide provide a sound basis for decision making. The
requirements of these documents are not repeated in this EEG
but as they form an integral part of engineering and project
management, they should be referred to. To aid
implementation of these Safety & Assurance requirements,
some EEG performance elements provide supporting guidance.

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Wood Group Engineering Excellence Guide
4.0 Engineering Excellence performance
element principles and best practice guidance
The following performance element principles and best practice
guidance are to be viewed as high level requirements with
detailed ‘how we work’ procedures being provided by the Group
business. In some cases, there may be a requirement to apply
client procedures.
Editor’s note: Engineering Excellence principles are shown in bold
text followed by best practice guidance. These expectations for
project delivery shall be reviewed by the project manager and the
business with any project-specific exceptions to the principles being
recorded in a project deviation register. It is recommended that the
guidance is followed unless a better option is available or the
guidance conflicts with business delivery requirements.
4.1 Management
 Each business shall define the method of delivery
of project and engineering management
 For business operations and projects which involve
collaborative working between work centres or
between Wood Group businesses, a unified set of
management processes is to be established
 Each project team is to establish a common ‘way
we work’ set of guidance. At the highest level, the
management processes are to reference Wood
Group’s Business Ethics Policy, HSE Management
System Standard, this Engineering Excellence
Guide and individual business policy documents
 Each project is to prepare a high level performance
statement related to the holistic delivery of the project
work scope. This is to be shared with all team members
and the client
 When considering system application across work
centres, it is essential that active pre-planning is
practised so robust IT networks are established and
work sharing is trouble-free
 Procedures for data management and document
control, including an agreed document numbering
system, are to be in place at the start of a project.
Whenever possible, the adopted design document
system should be structured to provide a seamless
interface into an operations documentation system
 During the early stages of a project and before
significant resourcing and work has commenced, it is
recommended that the relative complexity of the project
is evaluated to determine and inform risk management
and resourcing strategy. A project complexity scoring
methodology is available from Wood Group Mustang
 Some clients may require the approval of design
modelling tools and project management services
systems. This should be completed as early as possible
in the project cycle with such endorsement recorded
 When involved in commissioning and construction,
clear contractual accountabilities are to be documented
and supported by a Health, Safety, Environment and
Quality (HSEQ) culture which minimises the risk of
harm to people and the environment
4.2 Client alignment and interface management
 Client alignment and interface management shall be
an integral part of engineering and project
management
 The exchange between client and Wood Group
businesses is to be open and honest
 On completion of a project, a close-out record is to
be prepared summarising lessons learned and
including insights for future areas of
standardisation or best practice
 Relationship mapping and planning is recommended
with both client and Wood Group business sponsors
nominated
 Some clients may require the application of
performance metrics. When this is required, clarity on
the metrics and the measurement process is essential
 At the start of a new project the responsible business
development team will conduct a formal project
handover/kick-off meeting with the nominated project
team, and follow that with a kick-off meeting with the
client. When possible, the nominated project manager
should be consulted/involved in the proposal
preparation and initial kick-off meetings with the client
 At the project team level, interface meetings should be
established with key subcontractors (weekly or bi-
weekly), to ensure that any interface issues are
mitigated and that alignment on the project goals is
maintained
 Client feedback should be sought throughout the project
and used to improve the project performance as well as
business tools and systems
 Within the project team, a structure is to be created to
ensure inter-discipline interfaces are seamlessly
managed and delivery is seen as that of a single project
team
4.3 Competency and training
 Each business shall maintain a performance
standard whereby all personnel deployed on
projects are competent for the positions to which
they are assigned. A competency assurance system
that verifies achievement of that performance
standard shall be utilised
 The business EA shall be accountable for the
competency assessment and verification process of
personnel in technical integrity critical roles
 DTAs shall be responsible for the competency of
personnel deployed within their discipline, including
Project Services and Contracting and Procurement
 The preference is for each individual to annually
complete or refresh their competency assessment and
seek verification approval from a line manager or DTA
 For businesses that use remote engineering centres
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Wood Group Engineering Excellence Guide
without a resident EA, competency assessment is be
undertaken annually and/or at times when new design
tools are ready for deployment. The assigned business
EA should be responsible for these competency
reviews
 A training programme is to be available to employees in
order to develop and enhance the competency of
individuals and the business
4.4 Basis of design
 A Statement of Requirements (SoR) document shall
be agreed with the client. This is a high level
document, usually owned by the client, from which
the Basis of Design (BoD) is prepared
 A BoD document(s) shall be prepared at the entry
point for each project – typical entry points are
Concept Design or FEED. The BoD shall be
considered to be a live document that evolves
throughout the life of the project
 An integral part of preparing a BoD is to set out facilities
standardisation goals in terms of component, system or
complete facility
 The BoD document(s) will be one of the most-read
design documents and is an effective tool for
communicating requirements and assumptions to the
various project stakeholders. It is essential that the
document is kept up-to-date
 The BoD document(s) should be controlled to ensure
the project team always has access to the latest
approved version of the document(s)
 The BoD document(s) should be reviewed and
endorsed by the client in order to ensure alignment
between the project team and the client
 The BoD document(s) should be organised to allow
easy reference to design requirements. Typically, BoD
documents are organised either by discipline or system.
To maximise ownership and focus on technical details,
consider organising by discipline. To maximise
continuity and communication between disciplines,
consider organising by system
 In support of the BoD document, a Design Premise
document which contains method statements for
specific design activities eg. process, structural, riser,
pipe stress and potential pipe buckling is recommended
for complex projects or where work is completed at a
remote office
 For brownfield work, the accuracy and trustworthiness
of existing facilities documents should be considered. A
system for verification of the documents should be
established based on the risk and consequence
associated with any incorrect documentation. Note:
When existing facilities documents are being utilised in
design, a Management of Change procedure for these
documents should be established
 At all stages of the project, a document hierarchy
should be prepared. This document hierarchy should
establish the order of precedence for various design
8 Wood Group SAF/C/3.2 January 2015
documents. Typically, the BoD document would take
precedence over most other documents with the
exception of the Contract and Statement of
Requirements
 Eliminating emerging design conflicts within the BoD
documents is critical to ensure overall design integrity.
Reviews and audits of various design documents
against the BoD documents should be completed at
various (designated) project stages
4.5 Design integrity
 Each business shall be able to provide assurance
that key elements of the Wood Group Integrity
Management Guide are followed
 Design integrity, including technical and process
safety, is an integral part of a project’s integrity
management system. Businesses are to establish
specific processes to provide assurance that
required procedures and reviews are followed
 Design work is to be supported by inter-discipline
reviews which assess and mitigate technical and
safety risk. Specific safety reviews eg HAZIDs
(Hazard Identification Reviews), HAZOPs (Hazard
Operability Reviews) and MARs (Major Accident
Reviews) are to be undertaken. Performance
measurement of Technical and Process safety is to
form an integral part of Integrity Management KPI
reporting. Typical metrics would be the number of
revisions necessary to complete an approved
design and the time taken to close out actions from
safety reviews
 The environmental, health and social impact of a facility
design and ultimate installation are important
considerations during the design process. For both
greenfield and brownfield developments, it is important
to establish a baseline from which work progresses
 Facility designs must endeavour to minimise any
environmental impact and, where possible, via
techniques such as use of recycled material (steel) and
carbon capture and storage, seek to minimise any
impact or emissions
 Energy efficiency designs are to be proposed as an
option to minimise emission. This may involve a cost
value analysis utilising carbon credits which will require
the client’s endorsement
4.6 Operational integrity and availability
 Projects shall always act to influence positive
operational integrity outcomes at an early stage, via
rigorous review of design and operational details
 In support of integrity management in design,
operating procedures shall aim to deliver high
levels of plant availability with as low as practical
impact on the environment
 By effective design, projects shall seek to maximise
plant availability by informed decision-making on levels
Wood Group Engineering Excellence Guide
of automation and remote condition monitoring versus
direct operator intervention and maintenance
 Project team members should draw attention to any
areas of operational integrity concern, regardless of the
division of responsibility with the client
 All projects should include personnel with operational
experience to aid in the management of operating
integrity-related issues
 When preparing operating procedures, the manning
philosophy is to take into consideration the removal of
workers from hazardous and harsh environment
4.7 Development and deployment of new technology
 Robust and systematic evaluation, development
and deployment of new technology shall be
undertaken during the Concept and FEED stages of
a project
 The scope of technology development and deployment
relates to three distinct areas:
o Products: new products or new applications
of existing products
o Tools: the software and hardware used to
deliver our engineering
o Processes: application of new processes
and methods
Each of these areas has the potential to introduce significant
benefit or unacceptable risk to projects and each is therefore
evaluated as part of a holistic technology assessment process
 The evaluation and deployment of new and unproven
technologies is typically a 3-stage process:
Stage 1: Technology evaluation
Evaluation of the new technology including: an assessment of
the value proposition of the technology relative to its risk, the
state of qualification and the project readiness
Stage 2: Technology qualification
This involves the planning and execution of the qualification
process for a new technology based on a well-defined and
systematic process. Refer to DNV – RP-A203 Recommended
Practice – Qualification Procedures for New Technologies (Sept
2001) which provides a well-established structure for such a
process
Stage 3: Technology deployment
Once a technology is selected for deployment, this activity
involves the systematic planning for the integrity management
of the asset through the assessment and mitigation of risk
associated with the new technology. The preparation of a
contingency plan covering Stages 1 to 3 is recommended to
protect costs, schedule and reputation. The assessment of new
technologies is addressed in the Technology Risk Assessment
process available from MCS Kenny
4.8 Quality
 Each business shall develop and operate a Quality
Management System (QMS) that is compliant with,
and preferably certified to, ISO 9001: 2008 Quality
Management Systems – Requirements
 Each business shall have a documented procedure
that defines the methodology to verify the accuracy
of engineering designs
 All personnel are to have access to the current QMS
documentation. Project introduction programmes
are to be established to ensure all project teams are
familiar with the QMS content
 Each business is to have a procedure to document
the actions taken after a non-conformance or
deviation has been identified. Deviations are
activities which are outside the scope of agreed
standards (International, National and Client), Wood
Group business procedures and the project design
premise
 It is vitally important to have effective procedures
for addressing Management of Change (MoC).
Management of change or variation notices are not
to be limited to technical scope but are to include
any changes which may impact the cost or the
schedule of the project (eg changes to personnel,
organisational reporting, project control systems)
 A schedule for ‘internal audits’ and technical
reviews is to be established
 The QMS is to address project planning and control as
an integral part of engineering and project management
 Each business should have procedures that document
how work tasks are to be executed. These procedures
need to address the tools to be used and any validation
procedures which need to be carried out. This work is
normally referenced within the design premise
 The QMS must promote continuous improvement. One
common method of promoting continuous improvement
is an organised knowledge management/ lessons
learned system
 A procedure for managing host country regulator
compliance is to be applied, with any deviations being
flagged in a deviation report for tracking resolution
 When involved in construction management, it is
recommended that the QMS Quality Assurance/Quality
Control (QA/QC) procedures include performance
metrics
4.9 Risk management
 Effective management of risk is a key component in
the delivery of business project performance and
shall form an integral part of project management.
Identification of risks and the related management
response is an important part in achieving
engineering excellence and may present
opportunities for enhancing the engineering
delivery.
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Wood Group Engineering Excellence Guide
A documented risk management process typically follows
four steps:
1. Identify the risks
2. Assess the risks, prioritise and assign owners
3. Respond to the risks
4. Control the risks through a Risk Register which is
owned by the project manager and regularly reviewed
with the business leadership
 When preparing a risk register it is important to
distinguish between risk and uncertainty:
 Risk: an event (or set of circumstances) that, should it
occur, would have a material effect, positive or
negative, on the final value of a project. Risks with a
positive impact are called opportunities while those with
a negative impact are called threats
 Uncertainty: derives from imperfect knowledge, and
can be represented as a range of possible values or
outcomes. Only if the range of possibilities could cause
key decisions to change (e.g. greater than anticipated
impact of weather) will the uncertainty translate into a
specific risk event
 During a risk assessment it is likely that improvement
opportunities will be identified and these should be
presented to the client for endorsement.
4.10 Knowledge management
 Each business shall have a Knowledge
Management process encompassing the capture,
validation, retention and dissemination of useful
historic project information (often referred to as
lessons learned and benchmarking data)
 Proactive use of a knowledge management process
is to be encouraged and continuous improvement
measures demonstrated
 EAs and DTAs shall review submitted lessons
learned for possible implementation as business
standard practice. This is to include alerts/guidance
on changes to legislation, codes, specifications and
design practice
 The guiding principles and work processes for
knowledge management are considered the same for
each stage of a project (Concept, FEED, Detailed
Design, Construction and Commissioning, Operate and
Decommissioning). However, the actual information
collected and disseminated may vary by stage
4.11 Project services
 Project Services or Project Controls shall be
established early in a project to prepare and verify
project cost estimates, project schedules and to
oversee the administration of project reporting
systems including document control
 Different contract types and client requirements will
require the project services work scope to be
10 Wood Group SAF/C/3.2 January 2015
flexible in its delivery but at all times the focus shall
be to provide project management with leading
indicator performance data on schedule and cost
expenditure
 As projects evolve so will the project services team size
and skills required to deliver effective project services. It
is recommended that a common Work Breakdown
Structure (WBS) is adopted for planning, cost
estimating and work control. In addition, it is
recommended that document numbering and filing is
mapped into this WBS for easy management and
retrieval access. The adopted WBS may be imposed by
the client or as a default proposed by Wood Group
businesses
 When work is being undertaken at a number of
locations and possibly by different businesses within
Wood Group, the project services backbone for control
and reporting is to be agreed at the bid stage. This
should require at least the adoption of common input
data formats for finance and account control/invoicing,
time-sheeting and monthly reporting
 In some Wood Group businesses, project engineers are
appointed to assist in work management. When this is
done, care is required in structuring the organisation to
ensure clear roles and responsibilities are assigned and
a one team delivery model is established
 To aid the preparation of project plans and cost
estimates, all Wood Group businesses should retain an
easily accessible database of previous projects
including close-out reports, cost estimates for the work
completed and for the facility design plus associated
project planning data
 When preparing project proposals, cost estimates and
overall project schedules, reference to internal and
external benchmarking for equipment costs/delivery
times, design/construction rates/productivity and
construction/commissioning activity durations is
recommended. For projects in new regions and remote
locations, it may be necessary to include allowances for
project set-up including host country approvals,
workforce training and logistics
4.12 Contracting and procurement
 Contracting and procurement requires the highest
standards of ethics and code of conduct plus
diligent adherence to confidentiality requirements
when handling documents (Wood Group Business
Ethics Policy)
 When requested by the client, a Contracting and
Procurement Plan (CPP) is to be prepared as part of
the integrated project delivery work plan
 When managing subcontractors directly or on behalf of
a client as part of a management supervision contract,
clear contract accountabilities, responsibilities and
liabilities are to be documented
 Wood Group business involvement contracting and
procurement activities vary with client needs and range
Wood Group Engineering Excellence Guide

from preparation of Request for Quotation (RFQ)

packages and bulk Material Take-offs (MTOs) to
assistance in preparing contracting/procurement
strategies plus management of the full procurement
function
 Managing the requirements of local content, logistics
and supplier quality are important contracting and
procurement activities; accountabilities and
responsibilities are to be agreed with the client
 Supplier data management, oversight of quality plans,
expediting and cost management are key
responsibilities which need to be determined with the
client and nominated engineering leads
 Procurement accountabilities and liabilities with respect
to plant performance guarantees are to be clearly
defined. It may be necessary to assign specific process
performance measures to plant, equipment or materials
based on a range of input parameters agreed with the
client

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Appendix – Glossary/abbreviations EEG: Engineering Excellence Guide

EM: Engineering Manager

Asset Integrity: A subset of Integrity Management – the means
of ensuring that the people, systems, processes and resources
Employee: Is used when referring to Wood Group business
that deliver the integrity are in place, in use and fit for purpose
staff. Refer also to ‘Personnel’ which includes Wood Group
over the whole lifecycle of the asset.
business employees and agency staff
Availability: An asset’s ability to produce against its production
ESIA: Environmental and Social Impact Assessment – a formal
profile (expressed as a percentage). Availability (unlike
assessment of the environmental and social impact of a
reliability) includes production losses for planned maintenance
proposed project usually undertaken for the client by a third-
party consultant
Benchmarking: Specific quantitative data collected from each
project to allow performance comparison with similar internal
FEED: Front End Engineering Design
projects and similar industry projects
HAZOP: Hazard and Operability review or study – a structured
BoD: Basis of Design – the project BoD document defines the
and systematic examination of a planned or existing process or
technical basis for the project. It represents the agreed basis for
operation in order to identify and evaluate problems that may
development and is signed off by the client. Changes to this
represent risks to personnel or equipment, or prevent efficient
document shall be recorded via a Management of Change
operation. Normally undertaken during FEED, detailed design
process
and prior to issue of construction drawings
Business: A Wood Group Business Unit or subdivision
HSE: Health, Safety and Environment
Business Governance Procedures: For each business this
HSEQ: Health, Safety, Environment and Quality
includes all business policies, practices, procedures, guidelines
and standards used to control, guide and sustain consistent
HSSE: Health, Safety, Security and Environment
high integrity engineering delivery of work to clients
IMOR: Inspection, Maintenance, Operability and Repair
Business Leadership: Each business is to have a defined and
strategy detailing main equipment sparing, resource
published organisational structure which defines the reporting
requirements and competencies as well as operational targets
relationship of projects to the leadership of the business
Integrity: One of the seven Wood Group Core Values
CAPEX: Capital Expenditure
Integrity Management: As defined in the Wood Group Integrity
Client: Client or Customer is the party with whom the Wood
Management Guide
Group business is contracted to perform work
Interface Management Plan: A plan for the management of
Core Values = Wood Group Core Values: Safety &
interfaces internal to the project including suppliers and
Assurance, Relationships, Social Responsibility, People,
contractors. (Refer also to RMP and RACI diagram.)
Innovation, Financial Responsibility and Integrity
IOC: International Oil Company
CPP: Contracting and Procurement Plan
IP: Intellectual Property
CTR: Cost Time Resource – a schedule detailing the required
scope of work and discipline resources for a project deliverable.
KPI: Key Performance Indicator. Used to measure and convey
CTRs are used as the prime control mechanisms within projects
status on key elements of project performance
Deviation: A deviation or departure from an established norm,
Level 1, 2, 3/4: Plans of project activities at differing levels of
design condition or philosophy. Not all deviations result in
detail: Level 1 – Project Summary Schedule Level 2 – Project
changes being requested if they are recorded before work is
Control Schedule Level 3/4 – Detailed Project Schedule
started. Some businesses/projects may elect to record
deviations from the Engineering Excellence Guide
Lessons Learned: Good or bad project experiences including
resolutions or outcomes related to these experiences, plus
DTA: Discipline Technical Authority
good ideas, which are validated by an EA or DTA as important
considerations for future projects
EA: Engineering Authority

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Wood Group Engineering Excellence Guide
Life of Field: The life span of a field or asset from reservoir
appraisal to abandonment of production
MAR: Major Accident Review – undertaken to consider
catastrophic events which may result in loss of life or cause
significant pollution
Mechanical Completion: This term is used during construction
to describe the point when facilities have been assembled in
accordance with drawings, codes and specifications and all
inspection and testing has been completed. Mechanical
Completion is followed by commissioning when fluids are
introduced and the system goes ‘live’
MoC: Management of Change – formalised process for
managing and controlling changes in a project’s scope and
execution plans
MTO: Material Take-off
New Technology: Technology that is not proven
NGO: Non-Governmental Organisations (eg. Greenpeace,
Friends of the Earth, Amnesty International etc)
NOC: National Oil Company
OPEX: Operating Expenditure
PEP: Project Execution Plan – describes the plans and
strategies put in place by a project management team to
execute a project
Personnel: Is used when referring to Wood Group business
employees and agency staff
Process Safety: A disciplined framework for managing the
integrity of hazardous operating systems and processes by
applying good design principles, engineering and operating
practices. It deals with the prevention and control of incidents
that have the potential to release hazardous materials or
energy. Such incidents can cause toxic effects, fire or explosion
and could ultimately result in serious injuries, property damage,
lost production and environmental impact
Project Governance: The system for governance of capital
investment and expenditure as set out in the procedures of the
Wood Group business
Project Management: A generic term which is used across all
stages of a project
Project Performance Goal Statement: This statement should
summarise the overall objective of the project, eg. to evaluate a
range of concepts and provide a ranking, to prepare a topsides
detailed design with built-in safety and integrity. The purpose is
to achieve team alignment on the overall goal
Proven Technology: Technology which has a documented
history and track record for the intended application
RACI Diagram: Responsible, Accountable, Consulted and
Informed. The term is usually applied to a management diagram
which should be prepared for each stage and assigns levels of
owners to key documents
RFQ: Request for Quotation – used when requesting quotations
from equipment suppliers
Risk: A measure which accounts for both the probability and
consequences of a failure. For quantitative risk assessment,
risk is often defined as the product of the probability and
consequences of a failure mode
Risk Register: A listing of the risks identified for a project,
which typically explains the nature of each risk and records
information relevant to its assessment and management
SIMOPS: Simultaneous Operations – simultaneous
independent operations in which the events of any one
operation may impact the safety of personnel or equipment and
the environment of another operation
SME: Subject Matter Expert
SoR: Statement of Requirements – a client document
describing the fundamental business requirements and success
factors for the project which forms the basis upon which project
objectives, technical definition and execution planning are
developed
SPA: Single Point of Accountability – an individual who has sole
accountability for an activity or outcome
Technology: The scientific study and use of applied sciences,
and the application of this to practical tasks in industry
UAP: Unallocated Provision – costs within a project cost
estimate which are known to occur but have not yet been
defined
Value Improving Practice: Typically a discrete workshop event
designed to add value to the project by addressing critical
issues such as clarity of project objectives, selection of
appropriate technology or design to facilitate construction
WBS: Work Breakdown Structure – a framework defining the
basic building blocks for the work to be performed on a project.
The WBS provides logical and manageable groups or
compartments against which to structure cost and schedule
information
WG = Wood Group
SAF/C/3.2 January 2015 Wood Group 13