Risk management in

Design and construction of

Industrial Plant
A short tools analysis

DR. SERGIO PISSAVINI

VICE PRESIDENT O&G GLOBAL

TEHERAN, JANUARY 2017

GEA Group
Customer-oriented Group Structure

GEA bundles the development and

manufacturing of products and the
provision of process solutions into
the two Business Areas:
“Equipment” and “Solutions”.
Sales and Service activities are
combined on a local level in one
organization per country.

http://www.gea.com/en/investor-relations/index.jsp

GEA at a glance 3
GEA Refrigeration Italy (Technofrigo)
Business Area Solution, Application Center Utilities Oil & Gas Global

BOLOGNA, ITALY
Our company historical background

Founded in 1881, the company has been working towards development

and progress in the refrigeration field since last century.
1990:
It incorporated the companies Dell’Orto” and “Leonardo da Vinci
1992:
Technofrigo changed its name into Industrie Technofrigo dell’Orto S.p.A.

1994: Industrie Technofrigo Dell’Orto became part of the German GEA

Group as GEA Technofrigo

2011:
the company was called GEA REFRIGERATION ITALY S.p.A.

2015:
the company became GEA Application Center Utilities Oil & Gas Global
Business segments
Oil & Gas Power Chemical Marine

12%

13%

59%
16%

Oil & Gas Power Chemical Marine 6

GEA Utilities - Oil & Gas

GEA Utilities Oil & Gas (Head quarter in Italy, Bologna) provides flexible supply options of process
cooling, tank/storage cooling, gas compression, natural gas processing solutions for Oil, Gas, Chemicals &
Power (OGC&P) industries to meet varying customer requirements including:
Client Spec’s

Tools
Compressors
• Complete skid mounted packages -
Technology
assembled in Italy (Bologna), USA (York),
China (Shouzhu) and Russia (Moscow);
• Process Design – process simulation,
Scope
Refrigerant
fluids detailed engineering, documentation
and drawings along with process
guarantee;

Test Process fluid

• Commissioning & Start up;

Design Codes &

• Revamping;
Regulation

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Worldwide site installations (End Users)

More than 600 worldwide installations

RUSSIA & CIS AMERICA
5% 3%

ASIA
18%
EUROPE
50%

MIDDLE EAST
20%

AFRICA
4%

With different compressors technology

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The environment

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The “variables”

unclear specs understanding

Process constraints not fully described

ambient design condition not fully understood

miss-communication with sub-vendors about specs

delay in answering simple questions

small details recognized late: huge impact

decision making process

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Risk Analysis
Impact Table
N.B - DO NOT COMPARE between columns, thus level 5 H&S event is not of same significance as a level 5 financial event

Level Descriptive Health and Safety Environmental Quality Financial Generic

Multiple fatalities Very serious long term Catastrophic equipment A loss > 1.000.000 € Most objectives can not be
environmental impairment of failure, or plant is plant is off achieved
0,8 Catastrophic ecosystem functions production for a long period of
time > 500.000 €
Single fatality Major equipment failure, or A loss between 500.000 € and Some important objectives
plant is plant is off production 1.000.000 € can not be achieved
0,4 Major for a long period of time >
500.000 €
Multiple casualties requiring Serious medium term Bad quality of product could A major loss between 50.000 Some objective effected
0,2 Moderate hospital attention environmental effects be rectified cost < 10.000 € € and 499.999 €
Minor injuries requiring Moderate, short term, effects Minor item replacement < A moderate loss between Minor effects which are easily
0,1 Minor medical attention 1.000 € 10.000 € and 49.999 € remedied
Minor injury requiring first aid Minor, short term, effects Minor item replacement < 500 A minor loss between 5,000 € Negligible impact upon
0,05 Insignificant only € and 9,999 € objectives

Probability Table

Indicative frequency Probability of occurring GEA probability from corporate

Level Descriptive Description Probability range
risk register
(expected to occur) in lifetime of project
This event will occur on a
0,9 Almost certain monthly basis
Days to weeks Almost 99% >= 95% 0,9

This event may occur several

0,7 Likely times in your career
Weeks to months > 50% 51 to 95% 0,7

The event may occur twice or

0,5 Possible more in your career
Months to years > 20% 21 to 50% 0,5

The event may occur once in

0,3 Unlikely your career
Years to decades >1% 1 to 20% 0,3

0,1 Rare Has happened elsewhere 100-year event < 1% < 1% 0,1

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Risk Analysis

Probability - Impact Matrix

Probability Risk Score = Probability X Impact
0,90 0,05 0,09 0,18 0,36 0,72
0,70 0,04 0,07 0,14 0,28 0,56
0,50 0,03 0,05 0,10 0,20 0,40
0,30 0,02 0,03 0,06 0,12 0,24
0,10 0,005 0,01 0,02 0,04 0,08
0,05 0,10 0,20 0,40 0,80
Impact to Project Objectives

High Elimination/Reduction and Contingency plans need to be developed

Moderate Elimination/Reduction plans need to be developed
Low Action is optional

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Reliability studies & calculation (RAM and FMECA)

RAM and FMECA analisys estimate system reliability and

availability using recognized models according with codes (IEC
60812) or Customer specification.

• High level additional service for Customers

• Reduction of Mean Time To Repair (MTTR), through spare
parts supply (Lead Time) and refrigerant evacuation system
(Downtime)

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Design Review, Hazop

Use the best specialist

Analize the unforeseen

Review the 3D model

Extensive discussion on «What If»

The devils are in the little details

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Lesson learnt
Lesson Learnt LL #
GEA Refrigeration Italy S.p.A. GEA Mod 51 Date:

General Information
Project
Project Des cri pti on
Proj. Mngr: Contra ctor:
Prep. by: Da te Prep:
Lesson Learnt
Les s on Lea rnt Ti tl e

Les s on Code(s ) (s ee
Abs tra ct:
bel ow):

Root Ca us e

Les s on Lea rnt Des cri pti on

& Ana l ys i s

Recommenda ti on

Veri fi ca ti on &
Effecti venes s

Project Pha s e

Topi cs
(i ns ert rel eva nt topi cs
s epa ra ted by comma )

LL - Meeti ng Attendees

Lesson codes

Commercial & Pre-Engineering Safety Workshop Commissioning

Workshop Commissioning Project Management Administration & Finance
Engineering Supply Chain & Procurement Quality

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Planning and time-line

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Project Management
Controlling the time-line means controlling the cost-line

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Planning: the Key, it is the MUST

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Project time-line & organization
proposal phase

PROCESS DESIGN
b
proj. execution
phase DETAILED
a ENGINEERING
d
i c
MATERIAL SUPPLY
g
f
h
e SKIDS INSTALLATION
PREASSEMBLY (by Client)
k
j PM
COMMISSIONING &
PE
i
START-UP

PC
The meeting table Planning
SC Assistant

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Understand the complexity, priorities, roles

COMMERCIAL

Risk & opportunity

analysis

Proposed cntrct PROCUREMENT

text analysis & LOGISTICS
Proposed project Remedial actions
schedule % progress to Vendor's delay
Prospective proj. evaluation
mgr assist.ce if any Support vis-a-vis Main items pre- Shop schedule:
negotiation meet'g WORKSHOP
the Client if any Populate&up-date time & mhs
matl tracking
Main items prel'y Items exped. &
vendor agreements Cash-in vs cash- Performance bond inspect'd by agency
out just in case vs Contractual one %progr. & perform. SERVICES Misoperating vs
Work load chart on a regular basis
KOM: hypothesis (guarantee period) constr'n defects
& assumptions Contractual project Contractual vendor Coordinate
schedule list comment transportations WR, Specs & SoW Special Constr'n Create post sales
for s/contracting eqpt & main tools service opportunity
Qualified & detailed Process doc's, incl. Pre-qualification Approve packing Monitor bdgt &
cost estimate vendors bids if any questionnaire procedure sched. over-runs Remedial actions Accomplish
to Vendor's delay make good
PROJECT
MANAGEMENT
Planning &
PERFORMANCE
Coordination Design alternat's & Client FAT
Work-load charts
recovery plan procedure Customize quality Commissioning Chk' erection
manual schedule completeness
% progr. & perform. Shop schedule:
on a regular basis time & mhs Std & typicals to Non conformity & Start-up procedure Daily alert proj. mgr
comply with deviation approval & op. manual & H.O. dept

Welding inspect. & Feed oper. data to

Work load chart
Previous on-the- Document approval procedure data bank
shelf doc's procedure
Work break-down Contractual
QUALITY vendor list
structure
COMMISSIONING
Doc. progress Non-conformity
register ISO9001 & deviations
ISSUES AFFECTING PROJECT
Participate to the MANAGEMENT PERFORMANCE
project review
ENGINEERING
SEE THE FOLLOWING ZOOMS
4/09/15

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The key miles-stone

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Business Process essential

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The virtuous circle

Specs and
process
Close-up
analysis.
meeting
Risk
analysis

Design
Planning
review &
and time-
lesson
line control
learnt

Busines
process
and 360
Quality
Successful project = Successful team

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gea.com