When Mega Goes GIGA. Joseph C. Brewer, Jr. Dow Chemical VP Sr. Consultant, Capital Project Delivery Sadara Chief Implementation Officer

Transcription

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

2 Today s Objectives: Introduce the Sadara Project Discuss a Few of the Unique Challenges Latitude 26.94, Longitude 49.48

3 Sadara - Company Overview Å Joint Venture: Dow Chemical & Saudi Aramco Å Twenty-Six World Scale Production Units Å Extensive OSBL, Infrastructure & Off-Plot Å Location: Jubail, Eastern Provence, Saudi Arabia Å Initial Memorandum of Understanding May2007 Å Company Incorporation Oct2011

4 Sadara - Project Overview Å Largest Petrochemical Project Ever Designed & Built at One Time Å 27 Project Teams Å 25 Engineering Offices Worldwide Å 100+ Construction Contractors Å Peak Site Staffing: 60,000 Workers Å Total Recordable Incident Rate Å Nominal $20B Investment

5 Location Jubail

6 Location Jubail

7 1.9 Miles 1.3 Miles

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9 4 Dimensional Organization Project Engr. Process Engr. Process Control Construction Scheduling Contracting Operations Cost Mgmt. Design Engr. Purchasing Cost Estimating Org Effectiveness ECA Implementation Quality EH&S Site Integration HR Support 1 st Product Team PM Project Director PM PM PM Project Director Program Officers Project Director PM PM PM PM PM PM PM Project Director Project Director PM PM PM PM PM PM PM PM Project Director Project Director PM PM PM PM PM PM PM PM Contractors & Suppliers

10 Timeline JV LOI Feasibility Studies Initial Authorization Gate Review 1 st Product FEED Design Construction Startup

11 Ethane Naphtha Sadara Configuration Sadara Products Isocyanates Polyols Propylene Glycol Ethylene Oxide Propylene Oxide Solution PE Elastomers Glycol Ethers Amines Intermediates Raffinate Pygas Pyoil PlasChem Park Market Segments Specialty Films Household Products Polyurethane Foams Adhesives/Sealants Paints & Coatings Laminates Oil & Gas Chemicals Detergents Water Treatment Cables Construction Material Additives Furniture/Insulation Automotive Fluids Auto Components

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14 Title of Presentation

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20 Unique Challenges

21 Topics Å The Core Challenge Å Nonlinearities Å New Capabilities Required Å Contracting Potpourri Å Back to Fundamentals

22 The Core Challenge

23 The Core Challenge: GIGA is a Supply Problem Equipment Suppliers Bulk Material Suppliers Consumables Suppliers Financing Arrangements Rate of Decision Making Owner Personnel PMC Personnel Design Engineering Skilled Labor Cash Flow Feasibility FEED Technical Experts Design Procure Construct Commission & S/U

24 Concentrate the Buy But Don t Hurt Yourself Å Program Leveraged Pricing Agreements Can Deliver Significant Savings Å GIGA Volumes Can Bring Very Low Prices Å GIGA Volumes Can Overwhelm Suppliers Å GIGA Must Limit the Volume Committed to Any One Supplier Å GIGA Must Maintain a Higher Expediting/Inspection Presence

25 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

26 Nonlinearities

27 GIGA is Not an Extrapolation of Your Past Experiences Effort & Expertise Required Small Large Mega GIGA Project Size

28 Examples of GIGA Nonlinearities Å FEED Iterations Massive Parallel Optimizations Å Interface Management The Number & Complexity of Interface Points Å Change Management The Domino Effect Å Risk Management On Steroids Å Personnel Turnover Å Learning & Leveraging Å Black Swans Redefined Typically Small Risks are Now Large

29 New Capabilities Required

30 New Capabilities Required by GIGA Å A Four-Dimensional Organization with Proactive Morphing Å Standardization Plus Å Office of Intervention Å Integrated Asset Delivery Å Strategic Float Å Staying Aligned Organizational Effectiveness Å 1 st Product Team Å Proactively Managing Black Swans

31 Small Things that Grow Up to be Big Å Attracting & Retaining Talent Å Career Management Å Financing Support Å Community Relations Å Construction Workforce Marshalling

32 Contracting Potpourri

33 There is No Single Contracting Style that Fits GIGA Å OSBL/Infrastructure is Always Late Getting its Process Data, but Must Startup 1 st Å Attracting Sufficient Bids Requires a Mix of Contracting Types Å Newer Technologies are Still On Their Learning Curves Scope Changes Likely Å It s Best Not to Let the Market Split Up Your Packages Scale Them to the Market Å The Result: All Types of Contracts for which You Need to Be Prepared to Manage

34 Back to Fundamentals

35 GIGA is Intolerant of Forgetting to Do the Basics Well Å Full Staffing of Project Teams with Experienced Personnel Å Complete & Robust FEL Work & FEED Packages Å Full Implementation of Value-Improving Practices Å Benchmarking Å Gate Reviews Å Integrated, Backward Pass, Resource Loaded Scheduling Å Progress & Critical Path Monitoring & Reporting Å Robust Change Management Å Vigorous Risk Management Å Proactive Contract Management

36 GIGA is an Unforgettable Roller-Coaster Ride!

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

38 Theme: Annual Conference Theme Q&A 49 Year: Date: Location: 2017 Sept. 6-9 Boca Raton, FL