project control
TRANSCRIPT
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© 2015– Hervé Baron
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.
Hervé
Project Control
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© 2015– Hervé Baron
Project Control
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Please download this file so that you can see my trainer’s notes in the top left corner – latest Acrobat Pro feature.
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© 2015– Hervé Baron
Please download this file so that you can see my trainer’s notes in the top left corner – latest Acrobat Pro feature.
Project Control
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
Project Control
Delayed Project completion are common place
Phase What happened? Why? How to prevent this?
Engineering Engineering unable to progress
Lack of information from vendors
Early placement of POs, identification + penalty for late dwgs, follow-up
Procurement
Supplier is late
Supplier overloaded
Purchaser progress control not effective
Ensure proper progress data is requested, attach to payments
Construction
Construction behind plan
Lack of accurate progress control
Under estimation of certain trades
Accurate (detailed) step-wise item-wise progress
Eng/Constr interface
Construction Timely completion of hydrotests
Incentive put in place N/A
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
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© 2015– Hervé Baron
Project Control: Starting point
The plan
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© 2015– Hervé Baron
Project Control: Starting point
Basis of the schedule
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© 2015– Hervé Baron
Project Control: Starting point
Basis of the schedule
What are these assumptions for an EPC Project?
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© 2015– Hervé Baron
Project Control: Starting point
Basis of the schedule
• 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
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© 2015– Hervé Baron
Oil & Gas Projects Most likely critical path
What is the most likely critical path of Oil & Gas Projects?
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© 2015– Hervé Baron
Most likely critical path
Source: “The Oil & Gas Engineering Guide”, 2nd Edition, 2015, Hervé Baron, Editions Technip
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
The schedule • Schedule integrity
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
The schedule • Schedule integrity
What would you review in the CTR proposed initial schedule?
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© 2015– Hervé Baron
Project Control: Starting point
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
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© 2015– Hervé Baron
Project Control: Starting point
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
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© 2015– Hervé Baron
Project Control: Starting point 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
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© 2015– Hervé Baron
Project Control: Starting point Checking the schedule logic: typical EPC 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
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
The schedule • Schedule integrity
Monitoring the compliance to the schedule
How would you ensure compliance with the schedule?
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
The schedule • Schedule integrity
Monitoring the compliance to the schedule • Leading: look-ahead schedule / “to do” list • Lagging: review schedule up-dates
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© 2015– Hervé Baron
Example: FEED Project / Schedule set-up and monitoring
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© 2015– Hervé Baron
Follow-up: the weekly “to do” list
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© 2015– Hervé Baron
Training Agenda
The plan • The Principle • Planning assumptions
The schedule • Schedule integrity
Monitoring the compliance to the schedule • Leading: look-ahead schedule / “to do” list • Lagging: review schedule up-dates
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© 2015– Hervé Baron
Schedule up-dates: Milestones status review
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
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
What is the worst measure of progress?
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© 2015– Hervé Baron
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
What is the worst measure of progress?
Manhours spent
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© 2015– Hervé Baron
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
Physical progress is better… here is how we measure it
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
Progress Measurement
The graphical depiction of the planned progress is the “S” curve,
Plotting the actual progress allows to identify delay and cruising speed
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
Engineering Progress
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© 2015– Hervé Baron
Engineering Progress
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© 2015– Hervé Baron
Engineering Progress
What additional information do you need to assess Engineering progress performance?
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© 2015– Hervé Baron
Engineering Progress
What conclusions do you derive from the above Progress table?
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© 2015– Hervé Baron
Engineering Progress
What additional information do you need to assess the reason for the lag in Process progress?
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© 2015– Hervé Baron
Process Progress vs Manhours
In your opinion, what is the reason of the lack of progress?
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© 2015– Hervé Baron
Safety Engineering
In your opinion, how is Safety performing?
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© 2015– Hervé Baron
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?
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© 2015– Hervé Baron
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?
Milestones!
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© 2015– Hervé Baron
Engineering Progress Measurement
Source: “The Oil & Gas Engineering Guide”, 2nd Edition, 2015, Hervé Baron, Editions Technip
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© 2015– Hervé Baron
Engineering Progress Measurement
=> Request the schedule up-dates to contain the status of these MS
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© 2015– Hervé Baron
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?
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© 2015– Hervé Baron
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?
Workfront curves
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© 2015– Hervé Baron
Engineering Progress Measurement Available work front
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© 2015– Hervé Baron
Engineering Progress Measurement Available work front
How many such workfront curves do you draw?
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
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
Source: “The Oil & Gas Engineering Guide”, 2nd Edition, 2015, Hervé Baron, Editions Technip
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© 2015– Hervé Baron
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
Source: “The Oil & Gas Engineering Guide”, 2nd Edition, 2015, Hervé Baron, Editions Technip
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© 2015– Hervé Baron
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
• 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
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© 2015– Hervé Baron
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
Wrap-up: the Project Control dashboard of the Project during Engineering phase….
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© 2015– Hervé Baron
Project Control dashboard
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
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© 2015– Hervé Baron
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
![Page 60: Project control](https://reader034.vdocuments.us/reader034/viewer/2022050623/58f9adf7760da3da068b9db5/html5/thumbnails/60.jpg)
© 2015– Hervé Baron
Procurement Progress
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© 2015– Hervé Baron
Procurement progress control
% Progress
Milestones
How do you measure Procurement Progress?
What are the meaningful Procurement progress Milestones?
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© 2015– Hervé Baron
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
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Procurement follow-up table
Item RFQ BCD TBT Clarif PO Ex-Works
ROS
TC
GTG
Centrif pumps
Piping bulk
Etc.
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© 2015– Hervé Baron
Critical Equipment
In your opinion, which equipment are critical?
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© 2015– Hervé Baron
Critical Equipment
LLIs
How are LLI identified?
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© 2015– Hervé Baron
Critical Equipment
LLIs
How are LLI identified?
Which other equipment are critical?
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© 2015– Hervé Baron
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
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© 2015– Hervé Baron
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
What else?
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© 2015– Hervé Baron
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
Equipment critical for vendor information • Rotating • Packages • Fired Equipment
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© 2015– Hervé Baron
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
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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, • Draw list of actions required from the supplier • Request supplier to implement mitigations
Progress Report
Ensure the supplier puts the priority on your job!
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Supplier’s workprocess and reporting tool
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Supplier Progress Control
Exercise: analyze the steel structure manufacturer’s reports and draw conclusions and recommendations
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Supplier Progress Control
How are the various parties involved performing? • Drafting office • Planning Dept • Fab shop • Galvanizer
What would you recommend?
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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?
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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
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Construction progress
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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?
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Construction Reporting: overall progress
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Construction Reporting: overall progress
How to get an accurate progress of each trade?
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Construction Reporting: overall progress
How to get an accurate progress of each trade? Break the work in elementary steps.
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Piping progress
You must have a report down to elementary steps, i.e., status of each weld for piping, to actually monitor progress.
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E&I cable progress
Individual item (cable) and work step (pull/gland/terminate) status
Σ
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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
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Work steps Example: PR column
Preparing the foundation to receive the Column
Chipping process to enhance bond between column and foundation Erecting the Column
Holding the Column with shims
Mixing the Grout Pouring the Grout Mixing the Grout
Column pre-casting
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© 2015– Hervé Baron
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
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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
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Construction
The sub-contract arrangement: • Sub-contractor is paid installed quantities x agreed rates
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Construction
The sub-contract arrangement: • Sub-contractor is paid installed quantities x agreed rates
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Construction
The sub-contract arrangement: • Sub-contractor is paid installed quantities x agreed rates • This is regardless of resources employed • Hence productivity risk lies with sub-contractor
Can you identify the conflict of interest?
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Construction
The sub-contract arrangement: • Sub-contractor is paid installed quantities x agreed rates • 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?
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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
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Schedule commitments in sub-contract: sample
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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[email protected]
Project Control
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide - 2nd edition
A unique synthesis for the busy Project professional
270 pages
300 illustrations
Interested and wanting to know more on Engineering?
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The Oil & Gas Engineering Guide - 2nd edition
Discipline presentation: activities and deliverables
Table of Contents
The overall process
Methods & tools
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide - 2nd edition
Table of Contents
Discipline presentation: activities and deliverables
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The work of each Engineering discipline is described
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Design activities are explained, e.g., Plant
Equipment layout
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Complex activities, such as QRA, are explained through a
practical example.
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How are materials of construction selected ?
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How and when are Piping Materials ordered?
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A sample of all common Engineering documents is
included
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A sample of all common Engineering documents is
included
Use this to specify what you want to your Engineering
supplier !
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Verify the contents of engineering documents
with check lists.
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Difference between Engineering and Shop
drawings
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Understand the main technical aspects, e.g., DCS
vs ESD
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The common 2 types of package control
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The different Plant drainage systems
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The dynamic forces to which an Off-Shore
Plant is subject
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide - 2nd edition
Table of Contents
The overall process
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Use this as standard, question deviations.
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Understand the new 3D-model centered engineering process
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Know the interfaces between disciplines...
and with Vendors
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Understand what drives the Project schedule
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide - 2nd edition
Table of Contents
Methods & tools
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Use these methods as standard, question
deviations.
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Implement powerful procedures
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Request meaningful progress reports
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Implement effective Project Control
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide - 2nd edition
This book is destined to both:
Oil & Gas companies Project execution personnel
Oil & Gas contractors Project execution personnel
Date of publication: March, 2015.
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© 2015– Hervé Baron
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,
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide 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,
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© 2015– Hervé Baron
The Oil & Gas Engineering Guide 2nd edition
Order direct from the publisher:
http://www.editionstechnip.com/en/catalogue-detail/1111/oil-gas-engineering-guide-the.html