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    Nick Serpentzis, Fluor Nick Serpentzis, Fluor Presentation Transcript

    • Iron Ore Beneficiation Africa Conference Lessons Learnt from Iron Ore DSO and Other Projects that will enhance opportunities for Iron Ore Beneficiation in Africa 17 & 18 March 2014 Nick Serpentzis Project Manager & Engineering Manager
    • Agenda  Lean execution – definition, principles and measure  Modularisation – What is modularisation? Reason’s for modularisation, and an example video GV20130655001.pptx2
    • Definition – How do we define LEAN? Definition of Lean –fit for purpose, trim, lowest Capex, fastest delivery etc but not compromising plant throughput, operating costs, environmental, community or safety Accept that there will be trades off’s with ideal design, reliability, accessibility and items may need to be improved after plant begins to operate via mod squad or small projects in early production years. Definition of LEAN engineering, procurement, construction management are on following slides. 3
    • LEAN Engineering  Fit-for-purpose design (no gold plating)  Select equipment for design duty only (no or limited future capacity), no redundancy, no duty standby equipment and minimal process flexibility  Seek alternative access to equipment without compromise to safety by using EWPs, scaffolding and mobile cranes  Consider running pipes on sleepers rather than pipe racks where practical to reduce quantity of steel pipe racks  Rationalise equipment where practical  Re-use equipment previously selected from other projects e.g. project ‘X’ mill could be a good fit for project ‘Y’ 4
    • LEAN Engineering  Re-use area arrangement concepts previously used from other projects e.g. primary crushing station on project ‘X’ could be a good fit  Use Fluor standards and specifications and not a combination of client and Fluor’s  Minimise changes (not broken don’t fix it)  Freeze flowsheets and other key documents at study phase  Selective use of modularisation principals for cost savings where practical and cost effective (identified during study phase)  Use of detailed 3D modeling for design development, review, shop detailing assistance and construction assistance 5
    • LEAN Engineering (continued)  Consider workshare with low cost execution centres (for repetitive related drafting activities)  "Hands On" Fluor managers and lead engineers  Once a team members deliverables are complete try to demobilize individual off the project  Experience lean client team 6
    • LEAN Procurement  Agree on LEAN procurement procedures with client – clear and agreed procedures for award  Consider use of existing preferred vendors from either Fluor or client lists  Prequalify suppliers and limit number of bidders per package; hence bid list short (no more than 3)  Short bidding period (for small to medium equipment)  Sole source where practical (low cost and small packages)  Early engagement of potential suppliers so that facilities are suitably designed particularly long lead items  Don't sweat the details – get the big kit right and let the detailed design address small issues 7
    • LEAN Procurement (continued)  Cost effective steel and pipe sourcing  Cost effective manufacturing  China sourcing for equipment and fabrication  Use vendor standards a lot more – design from their catalogues  Less QC on lower risk packages  Use criticality rating system and only ask appropriate level QA/QC depending on criticality rating  Review potential of EPC packages (ideally ones with few interfaces) 8
    • LEAN Construction  Proven construction manager  Lean experienced (expat) team  Modularisation (where practical)  Complete bulk earthworks and major concrete works during dry season  Clear procedures for award and variations  Clear approval and decision making – not by committee  Sensible roster to keep team motivated and fresh  Use of skilled low cost expat labour (need to be compliant with in- country regulations) 9
    • LEAN Construction (continued)  Have a plan to live with some site rework to keep the fabricated materials moving to the site and avoid EOT (extension of time) claims from contractors  Don’t go with the cheapest constructor: • Choose competent "reasonable" priced and companies that will make your project a priority • Will end up with lean construction in the field in the long term  Highly visible schedule and objectives for short and medium term targets 10
    • LEAN Management  Aligned with client on goals, scope and execution  Don’t change execution strategy during execution phase  Don’t change key people on project both client and EPCM/EPC  Use experience management team members  Single project procedures and standards: • Not partially Fluor’s or Client’s – just Fluor’s  Lean client team (no need to duplicate EPCM team organisation)  Clear approvals system  Permits and approvals in place before mobilisation of construction  Flatter organisation chart 11
    • LEAN Management (continued)  Simplified reporting: • Progress reporting, scheduling, etc., • Don’t double up Fluor and client reporting – one only  Reduced overhead people where practical  Proper engagement of local authorities and community to ensure no problems or delays down the track  Minimise involvement of client in “detail” design process  Pick an energized management team on EPCM and client teams  Set-up a client and EPCM team combined office and mix up the discipline seating to break down the silos (where practical)  Define roles and responsibilities of key stake holders clearly and in writing 12
    • SUMMARY FOR LEAN SUCCESS  Alignment with client  Lean client team  Experienced Fluor team  Minimal client changes and client to allow autonomy for ‘detailed design’ phase deliverables  Regular face to face communication (video conferencing or literally face to face)  Fix flow sheets and other key engineering documents before detailed engineering  Single project procedures and tools  Shifting detailed design to fabricators, vendors, etc. wherever practical  Reuse arrangements and equipment from previous projects and rationalise wherever practical  Modularize sections of plant wherever practical  More construction involvement with engineering and more engineering involvement with construction  Fast tract procurement award procedures in place. 13
    • SUMMARY FOR LEAN SUCCESS (continued)  Fast tract contract procedures in place  Low cost sourcing for bulks and procurement. Investigate methods of allowing shorter delivery times so that materials can be pulled from farther up the supply chain  Avoid wastage, that is, anything not required for delivering value is discarded. This includes defects, overproduction, unnecessary detail, completed work that changed, mismatched deliverables that have either more or less than what is required, double handling or processing, employees waiting for anything and uncompleted work  Value is generated when customer capabilities are expanded, creating new needs and purposes, and when the facility better fulfills the purposes of customers/producers and demands of other stakeholders  Control level scheduling is coordinated by the controls manager and includes key participation by the material manager and field engineering in addition to construction supervision  Fewer site contractors  Integrate site teams wherever practical e.g. one commissioning manager 14
    • Modularisation  What is Modularisation?  The Reason for Modularisation  1st Generation Modules in the Pilbara  2nd Generation Modules in the Pilbara  Video example  Conclusions and Recommendations 15
    • What is Modularisation?  “What is?” • Modularisation is an execution approach for design, procurement, contracting and construction that shifts construction hours away from the site • Assemblies of process plant components • Assembled at one location (fabricator) and transported to another (jobsite) • Made up of structure, equipment, piping, electrical, and instrumentation • Made in a variety of sizes 16 Prefabrication Preassembly Process Modules Offsite Fabrication
    • Why Modularise ?  Project drivers for modularisation (pre-assembly, configuration, and fabrication location) • Safer controlled construction – avoids onsite work at heights and temporary handrails, and utilises fab yard overhead craneage, transporters • Reduce (unproductive) work hours onsite and reduce camp size • Value – grating and handrail can be incorporated, platework, liners, and piping can be included in assembly • Schedule benefits – parallel activities with earthworks/concrete and offsite fabrication • Labour availability • Risk management 17
    • Why Modularise ?  Project considerations • Schedule acceleration requirement • Engineering design safety factors • Need early vendor design information • Design software for engineering and shop drawings • Transportation to remote locations • Skilled labor shortages and/or low labor productivity • Industrial Relations challenges • HSE challenges • Risk mitigation: final cost and schedule certainty  Recent mmodularisation project results • Allowed for more productive work in shop environment from experienced craft (almost 2:1) • Reduced field workforce, congestion, travel time, remote location impacts, overtime, and created more work fronts • Facilitated more ground level work, less preparation, and scaffolding • Broke job into smaller, more manageable pieces • Facilitated less dependency on weather, remoteness, or site conditions • Reduced strain on the availability of experienced site craft and supervision 18
    • 1st Generation Modules in the Pilbara 19
    • 2nd Generation Modules
    • Key Lessons Learned (1st Generation to 2nd Generation)  More structures could/should be modularised – stair towers, transfer stations, and train load out facility  Screening building screen support Modules, bins, and hopper Modules worked well – replicate  Maximum of 4 lift points better suited fab yard, ship, and site crane/lifting requirements  Use of lifting trunnions where possible – safer/easier than lifting lugs and shackles 21
    • Key Lessons and Differences (1st Generation to 2nd Generation)  Distance Port Hedland to Site = 350 kilometres (1st Generation)  Distance Port Hedland to Site = 500 kilometres (2nd Generation)  More structures modularised – stair towers, transfer stations, and train load out facility. Max Module weight kept to approximately 200 tonnes due to increased distance and uncertainty of bridge limits during design. Decreased bridge inspection requirements, faster convoys.  Screening building screen support Modules, bins, and hopper Modules worked well – replicated (3 PS Screen Support Modules installed in 1 day).  2nd Generation – Modularisation of Stockyard Transfer Stations proved very effective for site install and access (4 Modules installed in 3 days).  Engaged Chinese Fabricator with more “Offshore” Modularisation experience and better safety culture (Australian scaffold standard essential). 22
    • Shop Detailing – Strategy from Lessons Learned on 1st Generation  The Chinese fabrication facilities can utilise their own in-house shop detailing capability however they will not be familiar with WA and other associated standards, especially mechanical platework detailing, and would require extensive in-house supervision. This issue was experienced on 1st Generation.  Execution strategy was for shop detailing undertaken by WA contractor, and issued directly to the nominated fabricator. Providing shop detail drawings by Perth based shop detailers, allows schedule gains to engineering progress by the early release of drawings.  Detailing of grillage was effectively completed by Chinese Fabricator – simple detailing. 23
    • Summary of Fabrication Strategy  China Based Fabrication • Drivers  No mechanical or electrical equipment to be shipped overseas for fit out of Modules  Remove work hours offsite  Reduced cost (improved value) and improved schedule  Larger transport envelope.  EPCM efforts to be concentrated in one location and maintain a level of tonnages that will be attractive to the larger fabrication workshops • Scope  Modularisation of inflow, OHP, and outflow building steelwork  Shuttle trusses and GTU drive towers, transfer stations, and TLO bins  Australian Based Fabrication • Drivers  Install equipment – pulleys, idlers, etc.  Optimise local fabrication content (IR local content)  Locally fabricate and deliver early steel to site to enable early mobilisation of SMP contractor • Scope  Conveyor steelwork  COS hoppers and chutes  Dust collection structures.  Train load out smart Module (PAM) 24 Total Tonnes = 15,000 Total Tonnes = 5,200
    • Offshore versus Onshore Fabrication and Pre-assembly of Modules/Trusses  Fabrication, pre-assembly, shipping, and transport to site • Offshore fabrication = 15,300 tonnes • Onshore fabrication = 5,296 tonnes  Schedule comparison – tonnes per month from award to completion in fab yard • Offshore fabrication output 850% more tonnes per month compared to onshore fabrication 25
    • Modularisation – Safety  Key requirement in selection process/criteria for fab yards as well as tender presentations and evaluations.  Almost 3.25 million work hours were recorded on the Offshore Fabrication project, with no lost time injury and 2 first aid cases  Safety culture during the life of the project changed due to supervision and the introduction of the hazard card system  Hazard cards – encouraged increased management focus on close out of action items 26
    • Traffic Management Plan – Overall Philosophy  Objective was to minimise police and pilot resources and to reduce the number of disruptions  Night time movements down Great Northern Highway to minimise community impact  MRWA approval was required, requested, and granted for Project 27
    • Night Time Movements Study  A report that quantitatively analysed the impact of night time movements of oversize load operations between Port Hedland and the mine site compared to day time was commissioned  30 kilometres/hour average speed – 9:00 A.M. Port Hedland departure: • A scenario in which oversize load operations are conducted across three days. Two campsites are utilised in route. Operations commence at 09:00 on each day.  30 kilometres/hour Average Speed – 9:00 P.M. PH departure: • As above, except that operations commence at 21:00 on each day.  As illustrated in the figure to the right, switching to night time operations results in a 91% reduction in the number of light vehicles delayed, and a 76% reduction in the number of heavy vehicles delayed. Total delay, as quantified by vehicle hours expected to reduce by 85%. Scenario 9 A.M. 9 P.M. Change Vehicles Delayed Light 454 39 -91% Heavy 348 84 -76% Total Delay 269 hours 39 hours -85% 28 0 50 100 150 200 250 300 Hours Total Delay 0 200 400 600 800 1000 Vehicles Vehicles Delayed 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 9AM:Heavy 9AM:Light 9PM:Heavy 9PM:Light
    • Divisible Loads – Optimisation  Approximately 19 off loads (stacked flat packs) • 70% reduction of police escorts • 70% reduction of road closures for passing  Approximately 63 off loads (disassembled flat packs) • Unachievable police escort requests • Significant other road user interface issues 29
    • Transport with Approval for Night Time Moves and More Than 2 Loads/Convoy  Night time Module movements – 3 nights travel to site rolling road block  136 Modules moved over 27 night time convoys  Total = 81 nights of rolling road blocks 30
    • Transport Without Approval for Night Time Moves and Greater Than 2 Modules per Convoy  Day time travel (refer impact on traffic on GNH) 3 days  136 Modules would have been moved more than 68 convoys  Resulting in total = 204 days of rolling road blocks, compared to 81 nights 31
    • Transport Envelope from Port Hedland for Offshore Fab 32
    • Transport Envelope from Perth for Onshore Fab 33
    • Incentive for using Freight Forwarder – Module Shipping and Transport  Total Transport Solution – Door-to-door solution i.e. ex-China organise origin transportation/export clearance/marine warranty surveying/pre AQIS compliance/sea freight/customs clearance/ discharge/cranage/haulage to site and offloading at site  Cost Effective – a multinational freight forwarder, with the ability to negotiate in the market place with shipping companies, airlines, and heavy haulage without sole sourcing  3 Site SMP install contracts meant site was the obvious interface for Module handover 34
    • Project Photos Critical Path Ship 7 – Product Screen Support Modules 35
    • Project Photos Critical Path Ship 7 – Product Screen Support Modules 36
    • Modular Construction Recommendations • The decision to modularise is a program execution decision NOT one that is made in construction • To be successful it is a detailed process of --- What, When, How, and Why --- to modularise • Need a commitment to move engineering forward to support the decision • Need a commitment from the owner’s approval process to support all earlier execution requirements • Understanding of the early work sequences must be built into the fabricator's organisation • Fabricator selection process provides a clear understanding of the fabricator's internal work processes and sequences. Shop drawings, nesting plans, weld maps, QC documents, and erection mark drawings • Ensure that engineering requirements matches the material grades and component configurations available within the fabricators market • Designing with rolled sections produced within that country • Have the original engineering drawings translated into the local language • Ensure Engineering Platform matches the fabricator’s • An advantage to Module Fabrication in a major shop is the ability to work double or triple shifts, coupled with a larger permanent workforce 37
    • Modular Construction Recommendations  Ensure route survey and transport corridors are understood  Detailed planning for Module moves  Understand the critical path  Recognise that Risk exists and manage that risk  It’s a cultural change  Modularisation can accelerate schedule and firms up cost certainty  Modularisation can deliver cost savings, but expectations must be tempered by shipping costs  Modularisation can lead to higher quality  3rd Generation – “Smart Module” Maximisation  Use someone who has done it before – make use of the “lessons learned” 38
    • Presentation End  Questions? 39