MEGA PROJECTS- A Project Management Perspective

Transcription

1 Engineers India Limited MEGA PROJECTS- A Project Management Perspective National Seminar on Project Management Objectives and Challenges Kolkatta Niraj Sethi 8 th July 2017

2 Table of Contents Overview Key challenges to project implementation Project Implementation Plan- Choices Phases of a Project Key Strategies Schedule Cost Monitoring/ Management Conclusion 11 July

3 Overview Maha Dhamaka- Bumper Sale It appears MEGA is the Mantra of the day! 11 July

4 Overview Vintage Refineries had Capacities of the order of 0.6 MMTPA against the current trends of MEGA Refineries around 20 MMTPA Refineries were fuels only refineries compared to today s MEGA integrated complexes Time cycles have shrunk from 71 months to 36 months Today s MEGA Refineries entail High CAPEX investments Current Indian refining capacity is 232 MMTPA India is now a refining hub, exporting nearly 80 MMTPA of products. Fiscal prudence doesn't permit Cost/ Schedule over runs in MEGA Projects 11 July

5 Overview Projects are growing in size and complexity-today it is common to think in terms of projects involving investments of Rs. 40,000 Cr and more. Integration for value addition characterizes most projects e.g. Refinery- Petrochemicals. The future could see Refining-Petrochemicals- Derivatives and coal gasification integrations. Increasing complexity and size accompanied by a need to cut implementation time and cost The net result is a set of major challenges that the Project Owners, Consultants, Contractors and Suppliers have to face jointly and overcome at each stage of a project 11 July

6 Key challenges to project implementation Competitive Environment Enhanced Project Sizes/ Investments Compressed Project Schedules Inadequate Experienced manpower Limited Number of Resourceful & Experienced Construction Companies Logistic Constraints /difficult landlocked terrains Inflexible procedures with limited Leeway for maneuvering Vendor/ Contractor failures Empowerment, Decentralization of Powers/authority for quick action 11 July

7 Project Implementation Plan Choices Implementation Modes Experienced in the recent past EPCM Low Cost / Diffused schedule Project LSTK High Cost/ Large Overall schedule OBE EPCM costs/ LSTK Schedules 11 July

8 Project Implementation Plan EPCM Vs EPC son 11 July

9 Project Implementation Plan - Remains a choice Panipat Refinery Expansion of 6 MMTPA implemented on a Hybrid mode. A combination of Conventional and LSTK. Mega Grass Roots Refineries such as GGSRL 9 MMTPA Bina 6 MMTPA Implemented on Conventional Route and Euro IV Project Set the trend of OBE mode of project Implementation in Preference to LSTK for major schedule gains towards the Award Cycle of LSTK Integrated MRPL Expansion chose an Ultimate Hybrid of Conventional, OBE and LSTK PNCP 0.8 MMTPA Integrated Complex & Paradeep Refinery chose the other Extreme of Total LSTK mode of Implementation Facilities on BOO basis have also been installed Recent Projects indicate no one way preference 11 July

10 Phases of a Project A Mega Project has the following broad Phases TAKE OFF ENGINEERING PROCUREMENT MANUFACTURING/ DELIVERY CONSTRUCTION MC/ COMMISSIONING Project Implementation Plan has to ensure an approach for Each Phase 11 July

11 Take Off / Front end Activities Process/Front end Formulation of an Exhaustive Project Design Basis Early Development of Plot Plan as the mother Document PFDs/ P&IDs and Dimensioned Equipment Layouts Process and Engineering Design Basis Clear Definition of Scope for Deliverables from Licensors 11 July

12 Take Off/ Front End Activities Process/Front end Standardization of Piping Material specifications and Instrumentation Philosophy with Licensors for minimization of variety and hence reduction in Cost Towards spares while maximizing Interchangeability Mechanical Design of Static equipment including internals with Firm Definition of hardware Complete Thermal design of all the Heat Exchangers and Air coolers for Firm Definition of Hardware API data sheets and Front end Thermal Design /Conceptual Mechanical design of all Furnaces for Firm Definition of Hardware Primary selection of pumps to finalize the seal arrangement and flushing/ utility connectivity Clear definition of control System including sizing of all Control valves and safety valves for Clear Definition of hardware 11 July

13 Take Off/ Front End Activities Front end Detailing Development of Load list, SLD, Electrical Substation layouts and Electrical System study for Clear definition of hardware Clear guidelines to perform Residual Basic Engineering including ISBL utility Distribution P&Id s in Units Dimensioned Equipment layouts incorporating experience from Engineering considerations & Owners maintenance practices Hazop Study on P&Id s and evolution of recommendations to be incorporated in design Finalization of Interfaces for the contractors Development of Conceptual UG piping System and General arrangements with guidelines for Detailed Engineering 11 July

14 Take Off/ Front End Activities Front end Detailing Safety Audit of the Equipment Layout and Finalization of other safety Requirements Development of all Architectural drawings for the Buildings Envisaged incorporating Owners Inputs for Clear definition of requirements Detailed Equipment Layout Plan and Elevation Sections Drawings Control System and Specifications Definition for DCS/PLC and Plant safeguarding system to clearly define the hardware Overall Layout Drawings for UG Piping System, Cooling water System, Fire water System, Cable layouts for electrical and Instrumentation system Development of Clear Design basis documents for all utility systems identifying the Hardware clearly in the documents 11 July

15 Engineering Task force working for synergy in engineering etc. regular Inter discipline reviews. Hold management system to be in place. Majority of front (Drawings/ Material/ Physical) shall be made available to the civil and structural contractors at the time of mobilization. Majority of front (Drawings/ Material/ Physical) shall be made available to the Composite contractor at the time of mobilization. Piping & Civil/ Structures to be opening batsmen!. Minimize Mid Course Changes 11 July

16 Engineering Exhaustive 3D model review to avoid surprises/ re-engineering and procurement of additional material. MTOs and AFC drawing extraction from Model IBR (System Isometrics) & Utility System Isometrics to be extracted from The Model Vendors encouraged to be accountable for drawings, fabrication etc. Building contract shall include all associated infrastructures such as AC system, Lighting, Fire alarm system etc. Monthly meeting shall be organized with the contractors/ vendors for Long Lead and critical items/ Package. 11 July

17 Procurement ORDERING/ MANUFACTURING/ DELIVERY Fast track ordering on competitive basis Zero deviation bid and exhaustive discussion before submission of bids may be adopted. Pre Tender/ Pre Bid meetings Static, Rotating Equipment may be bulked (Bottom line purchase) for availing advantages of economies of scale Accuracies of First piping Bulk MTO are critical to Project success Umbrella contracts for supply of standard equipment Motors/ Transformers/ Switchgear etc. 11 July

18 Procurement Major Equipment- Typical Refinery Description Columns Vessels Heat Exch Air Coolers Compressor Pumps Misc Unit Nos Nos Nos Nos Nos Nos Nos CDU/VDU MS Block DHDT DCU VGO HDT PFCC PP U&O Tanks TOTAL Bulk Procurement is the Key 11 July

19 Procurement Resort to bulking to minimize vendors Bulk material 210 km 5 Lakhs 2.2 Lakhs 1.1 Lakhs (Excl. P/L) 11 July

20 Procurement UG Piping material procurement to be prioritized to ensure major material availability prior to the contractor mobilization Minimize site work- Major fabrication in shop. ODCs sourcing through PORT based vendors Across the table review of drawings/ documents. Composite mechanical contract comprising of Mechanical, piping, electrical, Insulation, painting 3D Modeling Review done at 3 stages 3D Modeling accorded priority and Target Major Engineering completion 9 Months prior to MC 11 July

21 Construction Field engineering cell along with associated 3D model software. Peak manpower deployed on large Projects: 20,000/ Over 50 Million man-hours Tenders for Machinery to facilitate construction Piling Contractors encouraged to use Hydraulic rigs vis-à-vis Conventional. Designs tweaked to suit site conditions- Water Table, Hard Rock etc. Fabrication Yards Provision of Extensive Storage Warehouses/ yards 11 July

22 Construction Prioritize UG works and pavement to facilitate uninterrupted construction works Modular Construction Pre-fabricated Manholes, Trenches Tenders to augment failing contractors Awards for Safe working Constructability studies including Rigging studies for ODC and mega lifts Contractors encouraged to establish fabrication facility (Auto Welding) at site. Provides Large Inch-Dia daily progress. 11 July

23 Construction Engineering design to be Construction Friendly Monsoon Combat Plan & Designs to be in place for uninterrupted site works Credentials of perennially non performing vendors to be reviewed Equipment Tracking (GPS) and Logistic Expertise/ Monitoring system to be improved Possibility of Swing Contracts for supplementing failing construction agencies to be explored (e.g. Hiring Cranes and Manpower Resources) 11 July

24 Construction Major Site fabricated equipment Duration in months Review if Major ODC s could be fabricated at site If space is available. Typical Past project advantage in Site Fabricated ODCs COLUMNS Dia (M) Height (M) Weight (MT) Fabrication time (Ahead of sch.) CDU months VDU months Coke Chambers months delay Reactor months Regenerator months Provide Major cranes for Erection and handling of prefabricated RCC / Steel structures and Erection of ODC s. 11 July

25 Construction Work breakdown for Civil work for units and offsite With Volumes involved- RMC, Batching Plants, Free Issue of Cement & Steel are areas for deliberation 11 July

26 Construction Work breakdown for structural work With Volumes involved- Free Issue of Steel, Pre fabricated Steel delivered from external shops, Modularization are areas for deliberation 11 July

27 MC/ Commissioning System checks to start 06 months prior to Mechanical Completion for system wise monitoring/ completion/ handover Extensive Formatting to Checklist and identify the remedial measures Timely Availability of Utilities (Say N2/ CW/ Steam) to aid schedule Lining up of specialized agency to facilitate pre-commissioning / commissioning Adequate spares for last minute use Vendors on standby/ call for Commissioning assistance 11 July

28 Key Strategies - Schedule Target schedule shall be at least 2-3 months before the contractual schedule. Integrated Project Master Schedule, integrating all the work packages level detailed schedules from Major Contractors, Vendors Critical Path & Near Critical path analysis at regular intervals using Primavera software Multi-tiered Project review system Daily / Weekly meetings with Key Contractors Monthly progress review meetings by Senior Management War Room approach for Project Monitoring & Control Extensive reporting systems with regular Management reviews and meetings 11 July

29 Key Strategies - Schedule Long Lead and Critical Activities to be always in focus Bonus and incentive scheme to encourage vendors/ contractors to improve delivery. Long lead items shall be floated with preliminary data which shall be updated through amendments before award. Across the Table Drawing approvals to expedite Manufacture and delivery 11 July

30 Cost Monitoring / Management Ensure clear / succinct inputs for costing Consolidate all previous project data through database system Cost Status Reports to be monitored closely for analysis, feedback and corrective action Value based engineering for optimization, standardization and effective solutions Close vigil on SOR quantities to restrict variation and exercise schedule control Monitor variations in rates of Inputs, FE, Taxes/ Duties etc. 11 July

31 Project Management OWNER MANAGEMENT EXTERNAL LINKAGES INCLUDING STATUORY COMMISSIONING & HANDING OVER CONFIGURATION & DESIGN BASIS PROCESS DESIGN PROJECT MANAGEMENT CONSTRUCTION EQUIPMENT DELIVERIES FRONT END ENGG BID PACKAGE & CONTRACTOR SELECTION VENDORS CONTRACTORS DETAIL ENGG. Managing all players and Meeting All Challenges! 11 July

32 Conclusion Large projects increasing in Complexity Resources are an imperative All Phases are critical i.e. Pre-Project/ Engg. / Proc. / Const. Increased standardization, coupled with Proper planning and appropriate Project controls can help to mitigate the challenges Good Project definition is the key to meeting time and cost Success depends on use of Key Past Learnings and preparedness for eventualities Collaborative approach will work (Vendors & Contractors- Partners in progress) 11 July

33 Thanks for your patience 11 July