mattheys-k-small project alliance.pdf

8/14/2019 Mattheys-K-Small project alliance.pdf

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Small Project Alliance forexecution of projects


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Purpose of Presentation

To introduce the Small Project Alliance for execution of projects

Vision

DefinitionStrategic objectives

Strategic roadmap

Small Project Alliance key drivers

Overall project development & implementation diagramSimilarities & differences

Generic roles and responsibilities

How will we manage accountability

Procurement

Bidding ProcessEstimating

Planning & Scheduling

Cost Reporting

Invoicing


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Vision

To be an indispensable and trusted partner in the development andexecution of Sasol Projects

This will be attained through

Responsiveness;

Availability;

Flexibility;

Service Efficiency (cost, schedule, quality and safety); and

Seamless integration of our service delivery, work methodssystems and procedures with that of all stakeholders.


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Definition of a Small Project

Not new technology

Not complex (not more than two process steps)

Not Sasol core technology

No licensor or proprietary equipment involved

Low technical risk & low business risk

SHE/EIA under existing approvals/agreements

Cost Guideline < R20 million Capex


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Strategic Objectives

Total alignment with all Sasol Technology StakeholdersImplementation of elegant, Fit for Purpose work methods &

procedures (realising the benefits of low hanging fruit)

Quick turnaround on project development & implementation

Containing cost of services below 20%

Leveraging Sasol Technologys resources on low risk projects


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Strategic Roadmap

Define the rules of the game and get buy in on theoperating model

Facilitation through learning curves

Internal (Sasol Technology) Change ManagementPerformance metrics & control by Alliance SteeringCommittee(s)


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Small Projects Alliance Key Drivers

Establish clear focus on Client objectives

Maximise use of Alliance partners resources

Reduce workload of Sasol Technologys resources

Strive for continuous alliance improvement in the SPAexecution system and procedures

Develop trusting relationships between the alliance, itsClients and Sasol Technologys services

All transactions take place in an environment of trust,openness and mutual respect

Responsiveness

Availability

Flexibility

Service Efficiency


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OVERALL PROJECT DEVELOPMENT &IMPLEMENTATION DIAGRAM

(QUALITY MANAGEMENT PLAN)

Discipline Eng. Work

Procedures

Engineering RequirementsInterference RequirementsDeviation ManagementMaster Documentation &ChecklistsEnd of Job Docs requirements

Operations ProfitabilityImprovement (OPI) WorkManual

Prelim Process ProposaloPFD & MFD requirements

Hazop Studies & Safety FileBasic Economic EvaluationOpportunity DefinitionConceptual ProposalScope of Work definition & doc.

oEng. SpecificationsoBasic EngineeringPackage (BEP)

Technical Integrity

Start-up assistanceEvaluation and handover

Project Management Procedures

& Master Docs/Checklists

Info & Kick-off reqmentsValue Improvement Practices (VIPs)HazopsConstructability ReviewsGate Readiness Review (GRR)Project Execution Plan (PEP)

Ready for Construction (RFC),Ready for Operation (RFO) etc.

Cost EngineeringWork Procedures & Master Docs

Estimating

Cost ControloControl BaseoVariationsoCost Flow

oClose-out & capitalizationProject Execution Planning

Procurement & SupplyManagement Procedures

Procurement of GoodsProcurement of ServicesSurplus MaterialsMaster Documents

oApproved Vendors

oChange ManagementoOrder Authorization


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Similarities & Differences between the normal way of doing projects and the

Small Project Alliance way of doing projects

More interfaces

Sastech Proper

Owner

Project

ManagementTeam:

Sasol Technology

ProjectExecution

EPC, EPCM

Construction

Owner

Small Projects

SPA

- Front End Loading (FEL)

- Operations Profitability Improvement (OPI)

- Engineering (Eng)

- Engineering Procurement ConstructionMngt (EPCM)

- Construction Contractor

SastechFunctional

Governance

EM(Engineering

Mngt)

CE(Cost

Engineering)

Eng(Engineering)

P&SM(Procurement

& SupplyMngt)

LegalSHER

OPI(OperationsProfitability

Improvement)

Less interfaces

The same

Sastech ExecutionGroup

SastechExecution Group


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GENERIC ROLES AND RESPONSIBILITIES

FRONT END LOADING EXECUTION

ENG

R/A

R/A

A/C

A/I

SPA

C/I

C/I

R/I

R/C

Detail Engineering & Procurement

Construction & CommissioningAssistance

Process Intent/Engineering Intent

Communication Gateway (Partner)

Project Management, Engineering

Formal Project Actions (e.g

Hazops, VIPs, RFC, RFO)

ENG

C

C

R/A

R/A

C/I

C/I

SPA

R/A

R/A

C/I

C/I

R/A

R/A

Concept Development

Basic Engineering (BE)

- BEP sub-contracted to SPA

PM/Engineering/Construction

input (including Hazops, Area

Classification, VIPs, EIA)

R: Responsible C: To be ConsultedA: Accountable I: To be Informed

ENG = Operations Profitability Improvement/Hub/Process,Mechanical, Civil, Instrumental & Electrical Engineering


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How will we manage the Accountability

SPA TEAM

Schedule DOWNCost DOWNQuality UP

Apply Scope Definition

Follow interfaceprocedures

Integrate QualityManagement Systemsin all SPAs

Ensure alignmentwith Clients and Sasol

Technology

Good Scope Definition

Reduce turnaround

times by integrating

approvals

Conduct Scope +Resources Analysis

Plan resources

Apply Fit forpurpose systematicprocedures


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Procurement

Bidders List

Alignment between Sasol Technology & Alliance

Contractors bidders list

Continuous evaluation of bidders on the list

Bidding Process

The SPA team decide on the required shortlist of a specificdiscipline

Determine the nature of the scope

Schedule of ratesProvisional quantities with rates

Measured Bill of Quantities


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Bidding Process (continued)

Finalise the RFQ Documentation

Commercial Terms

Specs & Standards

Scope Description

Bill of Quantities

Preambles

Invite Bids

Bids must be sealed & addressed to the SPA Team


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Bidding Process (continued)

Tender Opening

Tenders to be opened by the delegated Small Project

Alliance (SPA) representative in the presence of theProcurement &Supply Management (P&SM)representative and client

Bid adjudication

The relevant SPA Team with the assistance of CostEngineering will adjudicate the bids

The SPA team including the relevant P&SM

representative & client will appoint selected bidder


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Planning & Scheduling

Alliance Partner

Provide a detailed schedule for each project (The type ofProject will determine the level of detail)

Maintain the detailed schedule throughout the project

Cost Engineering Sasol TechnologyCoordination function

Ensure that all schedules are maintained andcommunicated to the relevant parties


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Cost Reporting

Alliance Partner

Detail information regarding financial movements during

reporting period to be forwarded to the C.E representativeon the SPA Team

VPs Approved

PVPs raised

Site Instructions

Change Orders

Purchase orders placed

Letters of intent issued


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Cost Reporting (Continued)

Cost Engineering Sasol Technology

Typical information to be transferred to Alliance Partner

All SAP transactions processed during reportingperiod

All Sasol Technology man-hours expended duringreporting period

Cost Report Approval

The cost report will be represented to the weekly teammeeting for approval before it is represented to the client

and signed by Sasol Technology


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Invoicing

SPA Management Team

The relevant member will submit their invoice, withapproved back-up, on agreed dates to the CE Sasol

Technology for verification

Verified invoices will be tabled for approval by the relevant

SPA Team

The responsible Sasol Technology Officials will do the

required entries into the SAP system to ensure timeous

payment


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Small Project Alliance forexecution of projects