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Theme:
Year: Date: Location:№
When Mega Goes GIGAJoseph C. Brewer, Jr.Dow Chemical VP – Sr. Consultant, Capital Project DeliverySadara – Chief Implementation Officer
Annual Conference Theme
Sept. 6-92017 Boca Raton, FL49
Today’s Objectives:• Introduce the Sadara Project• Discuss a Few of the Unique Challenges…
When Mega Goes GIGALatitude 26.94, Longitude 49.48
When Mega Goes GIGA
Sadara - Company Overview
Å Joint Venture: Dow Chemical & Saudi AramcoÅ Twenty-Six World Scale Production UnitsÅ Extensive OSBL, Infrastructure & Off-PlotÅ Location: Jubail, Eastern Provence, Saudi ArabiaÅ Initial Memorandum of Understanding – May2007Å Company Incorporation – Oct2011
When Mega Goes GIGA
Sadara - Project Overview
Å Largest Petrochemical Project Ever Designed & Built at One TimeÅ 27 Project TeamsÅ 25 Engineering Offices WorldwideÅ 100+ Construction ContractorsÅ Peak Site Staffing: 60,000 WorkersÅ 0.033 Total Recordable Incident RateÅ Nominal $20B Investment
When Mega Goes GIGA
Location
When Mega Goes GIGA
Jubail
Location
When Mega Goes GIGA
Jubail
1.3Miles
1.9M
iles
When Mega Goes GIGA
When Mega Goes GIGA
4 Dimensional Organization
When Mega Goes GIGA
Program Officers
EH&S
Process Engr.
PM
Project Director
Construction
Quality
Process Control
Design Engr.
Project Engr.
Cost Estimating
Cost Mgmt.
Scheduling
Org EffectivenessECA Implementation
Site Integration
PM PM PM
Purchasing
ContractingOperations
PM PM PM PM PM PM PM
Project Director
Project Director
Project Director
HR Support
PM PM PM PM PM PM PM PM
Project Director
ProjectDirector
PM PM PM PM PM PM PM PM
Project Director
Contractors&Suppliers
1st Product Team
Timeline
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FeasibilityStudies
FEED
Design
Construction
Startup
JV LOI InitialGate Review
Authorization 1st Product
When Mega Goes GIGA
Sadara Configuration
When Mega Goes GIGA
ProductsIsocyanatesPolyolsPropylene GlycolEthylene OxidePropylene OxideSolution PEElastomersGlycol EthersAmines
IntermediatesRaffinatePygasPyoil Pl
asC
hem
Park
Ethane
Naphtha
Market Segments
Sada
raSpecialty FilmsHousehold ProductsPolyurethane FoamsAdhesives/SealantsPaints & CoatingsLaminatesOil & Gas ChemicalsDetergentsWater Treatment CablesConstruction MaterialAdditivesFurniture/InsulationAutomotive FluidsAuto Components
When Mega Goes GIGA
When Mega Goes GIGA
Title of Presentation
When Mega Goes GIGA
When Mega Goes GIGA
Title of Presentation
When Mega Goes GIGA
When Mega Goes GIGA
Unique Challenges…
When Mega Goes GIGA
When Mega Goes GIGA
Topics
Å The Core ChallengeÅ NonlinearitiesÅ New Capabilities RequiredÅ Contracting PotpourriÅ Back to Fundamentals
When Mega Goes GIGA
The Core Challenge
When Mega Goes GIGA
The Core Challenge: GIGA is a “Supply” Problem
When Mega Goes GIGA
EquipmentSuppliers
Bulk MaterialSuppliers
ConsumablesSuppliers
FinancingArrangements
CashFlow
Rate of DecisionMaking
OwnerPersonnel
PMCPersonnel
Design Engineering
SkilledLabor
TechnicalExperts
FeasibilityFEED
DesignProcure
ConstructCommission & S/U
Concentrate the Buy – But Don’t Hurt Yourself
Å Program Leveraged Pricing Agreements Can Deliver Significant SavingsÅ GIGA Volumes Can Bring Very Low PricesÅ GIGA Volumes Can Overwhelm SuppliersÅ GIGA Must Limit the Volume Committed to Any One SupplierÅ GIGA Must Maintain a Higher Expediting/Inspection Presence
When Mega Goes GIGA
Strategic Sourcing
Å What Volumes Will You Buy that the Market Will Struggle to Supply?– Rotating Equipment?– Analyzers?– Special Metallurgy?– Switchgear?– Etc…
Å Pinch Points Require Special Mitigation Efforts
When Mega Goes GIGA
Nonlinearities
When Mega Goes GIGA
GIGA is Not an Extrapolation of Your Past Experiences
When Mega Goes GIGA
Small Large Mega GIGA
Effo
rt &
Exp
ertis
e R
equi
red
Project Size
Examples of GIGA Nonlinearities
Å FEED Iterations – Massive Parallel OptimizationsÅ Interface Management – The Number & Complexity of Interface PointsÅ Change Management – The Domino EffectÅ Risk Management – On SteroidsÅ Personnel TurnoverÅ Learning & LeveragingÅ Black Swans Redefined – Typically Small Risks are Now Large
When Mega Goes GIGA
New Capabilities Required
When Mega Goes GIGA
New Capabilities Required by GIGA
Å A Four-Dimensional Organization with Proactive MorphingÅ Standardization PlusÅ Office of InterventionÅ Integrated Asset DeliveryÅ Strategic FloatÅ Staying Aligned – Organizational EffectivenessÅ 1st Product TeamÅ Proactively Managing ‘Black Swans’
When Mega Goes GIGA
Small Things that Grow Up to be Big
Å Attracting & Retaining TalentÅ Career ManagementÅ Financing SupportÅ Community RelationsÅ Construction Workforce Marshalling
When Mega Goes GIGA
Contracting Potpourri
When Mega Goes GIGA
There is No Single Contracting Style that Fits GIGA
Å OSBL/Infrastructure is Always Late Getting its Process Data, but Must Startup 1st
Å Attracting Sufficient Bids Requires a Mix of Contracting TypesÅ Newer Technologies are Still On Their Learning Curves – Scope Changes LikelyÅ It’s Best Not to Let the Market Split Up Your Packages – Scale Them to the MarketÅ The Result: All Types of Contracts for which You Need to Be Prepared to Manage
When Mega Goes GIGA
Back to Fundamentals
When Mega Goes GIGA
GIGA is Intolerant of Forgetting to Do the Basics Well
Å Full Staffing of Project Teams with Experienced PersonnelÅ Complete & Robust FEL Work & FEED PackagesÅ Full Implementation of Value-Improving PracticesÅ BenchmarkingÅ Gate ReviewsÅ Integrated, Backward Pass, Resource Loaded SchedulingÅ Progress & Critical Path Monitoring & ReportingÅ Robust Change ManagementÅ Vigorous Risk ManagementÅ Proactive Contract Management
When Mega Goes GIGA
When Mega Goes GIGA
GIGA is an Unforgettable Roller-Coaster Ride!
When Mega Goes GIGA
But Allows You to Achieve Things No One Else Has Achieved.
Theme:
Year: Date: Location:№
When Mega Goes GIGA
Q&AAnnual Conference Theme
Sept. 6-92017 Boca Raton, FL49