ENGINEERING MANAGEMENT
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1 ENGINEERING MANAGEMENT Identification Selection Definition Execution Develop engineering to sufficient detail to enable a Class 4 or 5 capital estimate to be prepared for the alternative. Use benchmarking, information and order of magnitude estimating. Leverage off existing information to support the capital estimate. Prepare Class 2 estimate for selection phase engineering activities. Develop an engineering work plan for inclusion in the overall selection phase SWP. Advance engineering in accordance with the SWP covering all scope aspects (mine, infrastructure, and processing facilities). Develop engineering for the alternatives to sufficient detail to enable Class 4 or 5 estimate and schedule. Develop the basis of design (BoD) for the selected option. Develop engineering for the selected alternative to sufficient detail to enable a Class 3 capital estimate and Class 3 schedule. Develop the engineering strategy to be adopted for the definition and execution phases of the project.. Commence application of value improving practices (VIPs) consistent with the value improvement plan. Advance engineering in accordance with the SWP covering all scope aspects. Finalise the BoD for the selected alternative. Review the Pre- Commitment Funding Class 2 schedule from selection phase, finalise and baseline for reporting and control Develop engineering for the selected alternative to sufficient detail to enable a Class 2 capital estimate and Class 2 schedule. Advance development of engineering technical deliverables to enable procurement of precommitment items (e.g. technical specifications and data sheets). Continue to apply VIPs to further optimise the selected alternative. Develop the engineering management plan for the execution phase. Prepare a Class 2 estimate for the execution phase engineering activities. Establish the basis for the engineering controls system. Implement the engineering management plan. Complete detail engineering in accordance with the approved scope of work, BoD and project technical specifications.
2 Identification Selection Definition Execution Prepare tender documentation to enable selection and award of the implementation contractor for the definition / execution phases of the project. Prepare Class 2 estimate and Class 2 schedule for definition phase engineering activities. Prepare Class 2 schedule for Pre- Commitment Funding planned for execution during definition phase Develop an engineering work plan for inclusion in the overall definition phase SWP including provision for detail engineering of any precommitments. Engineering management strategy To develop the engineering management strategy: The most appropriate engineering strategy depends upon what investment phase the project is in, the complexity of the project and the scale of the project. For the majority of projects, the engineering strategy during the identification and selection phases is different to that implemented during the definition and execution phases. Continuity of engineering input through project phases is important and subject to satisfactory performance against pre-determined acceptance criteria, the implementation contractor appointed for the definition phase continues to the end of the execution phase. For larger projects, it is preferable to appoint an implementation contractor with the requisite experience and capability to undertake the procurement and construction management activities. Value engineering centres are effective in cost reduction, provided that interface management, battery limit complexity and communication are properly addressed.
3 Basis of design Section Scope of work Business case Site location Site conditions Battery limits Design life Design criteria Feed, product and wastes Operability and maintainability Existing facilities Control philosophy Utilities Transport considerations Regulations Technology and supply Safety in design Health Basis of design contents Content Describes the scope of the final installed facilities with reference to the detailed scope of work (SoW). Outlines the key value drivers for the project to set context. Determines and communicates clear guidelines with regards to the relative value / penalty of cost and schedule impacts associated with scope changes or design development considerations. This facilitates rapid close out of decisions. Defines the site location. Provides relevant site conditions such as topographical, geotechnical, seismological and climatic data. Defines the battery limits for the scope of work. Design life for the facility and key components. Design criteria for disciplines such as process, mechanical, civil, structural, piping, electrical and instrumentation. The design criteria reference appropriate regulatory standards to adopt for the design. Defines process inputs and outputs, including feed specifications, product quality constraints and waste stream quality requirements. Includes specifications for all inputs and outputs including reagents, fuels, exhaust, tailings, residues and effluent. Requirements for availability, operability, reliability and maintainability of the processing facility. Defines constraints imposed by existing facilities that impact development of the new scope. Any constraints on the design with respect to process control facilities. Outlines the requirements and constraints associated with provision of process utilities e.g. water, air, power, fire water, etc. Off site conditions that are likely to impact supply or product transportation logistic constraints including transport corridor limitations for construction purposes. Outlines any regulatory requirements not referenced in the design criteria that impact the design development. Outlines any specific technology constraints that are imposed on the design e.g. if technology or equipment selection is constrained to that currently adopted at the facility. Safety parameters to be provided for in the design e.g. requirements and results from preliminary HAZOP and HAZAN. Occupational health and safety issues identified to be considered in the design. Environment Environmental constraints that impact the design of the processing facility. References References to any relevant reports that guide the design such as pilot plant or laboratory reports, hazard study or others.
4 Engineering management plan Section Content Scope output Scope of work Outlines the scope of the final installed facilities with reference to the SoW. Engineering deliverables Outlines the list of engineering deliverables is consistent with the contractual requirements for the implementation contractor. People Organisation structure Describes the engineering structure for Owner s and implementation contractor teams shows relationship to overall project organisation. Roles and responsibilitie s Resourcing Training Team development Consultants and value engineering centres Relative roles of the Owner, implementation contractor and the individual key roles within these teams. Shows the resource requirements by month for the engineering team. Outlines the programmes to be established for ensuring engineering personnel are trained in use of systems and processes. Outlines specific processes to be adopted to develop a high performance team in engineering. Outlines use of any consultants and value engineering centres in terms of method of engaging and managing. Systems Systems and tools Defines systems and tools to be adopted for the various project phases. Engineering schedule Shows outputs of a fully engineering schedule. KPIs Engineering KPIs supporting the overall project KPIs measures engineering performance. Engineering control Document control Quantity control Outlines requirements to enable control of the function throughout the study phases and execution phase. Outlines requirements for document control and the work processes to be adopted. Outlines how bulk quantities are tracked throughout the design development. Processes Basis of design Documents how the BoD is developed and maintained includes an overview referencing the BoD. Engineering procedures Engineering interfaces andmeetings Value improving practices Identifies full list of required procedures for both Owner s and implementation contractor teams ensure the development of these is completed early in the phase and that resources are allocated for this. Outlines the interfaces (internal and external to engineering) and sets out meeting diary to be established for the project. Outlines the key engineering contribution to value of the project by way of VIPs.
5 Engineering lists Change management Vendor design, data and documentation Safety in design Constructability & pre- assembly reviews Quality assurance & quality control Field engineering Review of contractor plans Computer aided engineering Outlines the methodology for developing and maintaining discipline lists across the project. Overview of the change management process to be implemented and how it applies to engineering. Outlines how vendor data requirements are defined, managed and expedited. Specifically outlines the methodology for ensuring safety is considered during the design. Identifies how constructability is built into the engineering processes. Outlines requirements for QA/QC of the engineering processes. Outline requirements for field engineering and the work processes to be adopted. Clearly outlines how contractor(s) / consultant(s) / value engineering centre(s) plans are integrated to support the overall delivery plan for engineering. Outlines the processes to be adopted and enables a considered approach to the lead time and resources required for the development and implementation of the system. Study phase engineering Identification Phase Study Identification phase activities include: Identify major alternatives for evaluation in the selection phase. Identify all potential material issues or major risks. Define what work needs to be done to further assess the investment opportunity. Plan for the next phase i.e. the SWP for the selection phase, defined deliverables and budget hours. Engineering is required to support these objectives with key considerations as follows: Develop engineering to enable an order of magnitude estimate to be completed. Use highly experienced personnel. Leverage off recent project data for similar facilities or infrastructure developments. Selection Phase Study The engineering activities for the selection phase include: Complete preliminary engineering to support Class 4/5 estimates and schedule on alternatives identified and short listed during the selection phase. This information is critical to the opportunity framing and opportunity selection process. Develop the overall engineering strategy, consistent with the overall project execution strategy. This includes the strategy to be adopted for both the definition and execution phases. Develop the BoD for the selected alternative. Finalise the location study for the project. Prepare a preliminary plan for carrying out detailed engineering in the execution phase.
6 Definition Phase Study Best practice level of engineering progress at the estimate cut-off stage of the definition phase study meets the following minimum requirements: Layout drawings are frozen. BFDs, PFDs and P&IDs are at issue for design stage. BoD is complete. The engineering scope of services is fully understood and captured in a Class 2 schedule. There is formal approval by project and operations teams. The SWP for the definition phase engineering, which is prepared at the end of the selection phase, includes both engineering activities for the definition phase and engineering planning activities for the execution phase: The engineering activities for the definition phase include: Progress the design and develop the deliverables to enable development of a Class 2 capital estimate and Class 2 schedule, appropriate for a definition phase study and sufficient for project control purposes during the execution phase. Commence detailed design for any long lead items that have been identified. The schedule is critical to identify these items. The BoD must consider: Relevant site conditions, e.g. topographical, seismological and climatic data. Operability, reliability and maintainability of the processing facility. Design life for the facility and key components. Safety parameters identified and provided for in the design e.g. preliminary HAZOP and HAZAN. Occupational health issues identified and provided for in the design basis. Environmental constraints to be placed on the processing facility identified and provided for in the design basis. Design criteria for each discipline i.e. process, mechanical, civil, structural, piping, electrical and instrumentation. Off-site conditions that are likely to be reflected in supply or product transportation logistics constraints provided for in the design basis. Identification of the parties proposed to be responsible for providing and performing engineering, the standards to be adopted, the engineering role of the project team, quality assurance, HAZOPs and technical / expertise issues. The inclusion in the engineering plan of CAD tools and associated workflows, data acquisition - in particular vendor and brownfield site data, quality assurance and control methods, document control / approvals, design office / site office interaction and detailing. Ensure that engineering firms have the requisite tools in place (CAD, management control systems, etc.) prior to commencement of engineering.
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