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Theme: Year: Date: Location: When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP – Sr. Consultant, Capital Project Delivery Sadara – Chief Implementation Officer Annual Conference Theme Sept. 6-9 2017 Boca Raton, FL 49

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Page 1: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 2: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 3: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 4: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 5: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Location

When Mega Goes GIGA

Jubail

Page 6: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Location

When Mega Goes GIGA

Jubail

Page 7: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

1.3Miles

1.9M

iles

When Mega Goes GIGA

Page 8: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 9: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 10: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 11: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 12: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 13: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 14: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Title of Presentation

Page 15: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 16: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 17: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Title of Presentation

Page 18: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 19: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

Page 20: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Unique Challenges…

When Mega Goes GIGA

When Mega Goes GIGA

Page 21: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Topics

Å The Core ChallengeÅ NonlinearitiesÅ New Capabilities RequiredÅ Contracting PotpourriÅ Back to Fundamentals

When Mega Goes GIGA

Page 22: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

The Core Challenge

When Mega Goes GIGA

Page 23: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 24: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 25: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 26: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Nonlinearities

When Mega Goes GIGA

Page 27: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 28: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 29: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

New Capabilities Required

When Mega Goes GIGA

Page 30: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 31: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 32: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Contracting Potpourri

When Mega Goes GIGA

Page 33: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 34: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Back to Fundamentals

When Mega Goes GIGA

Page 35: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

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

Page 36: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

GIGA is an Unforgettable Roller-Coaster Ride!

Page 37: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

When Mega Goes GIGA

But Allows You to Achieve Things No One Else Has Achieved.

Page 38: When Mega Goes GIGA - ecc-conference.org ECC Breakout... · When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP –Sr. Consultant, Capital Project Delivery Sadara –Chief Implementation

Theme:

Year: Date: Location:№

When Mega Goes GIGA

Q&AAnnual Conference Theme

Sept. 6-92017 Boca Raton, FL49