Overruns in Offshore Projects: TowardProductivity and Performance ImprovementProfessor Peter ED Love                      ...
Offshore projectsBetween 1993-2003 (Merrow, 2003) 1 in 8 major offshore projects with a CAPEX ranging from  US$1 million ...
Recurrent factors contributing to          cost overruns include: Poor scope definition                                  ...
Forms of waste in offshore projects                                                                          Changes, erro...
Preliminary observations Common design errors found during maintenance and  inspection of FPSOs include:             • Bo...
Generic dynamics of rework                                                                                  Relationship c...
Design errors: Sleipner A failureCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 0...
• Eliminate wasteful practices                                                             • Optimize resources• Streamlin...
Re-think project delivery• Remove lowest cost – go for  value• Eliminate competitive  tendering• Introduce performance  me...
BIM: From 3D → nD modellingA methodology to manage the essential design and project data      in digital format throughout...
Augmented realityCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
Dynamic planning: real-time                                           RFID                       Sensors and trackingCurti...
Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
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Peter Ed Love Offshore Technology Conference

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Transcript of "Peter Ed Love Offshore Technology Conference"

  1. 1. Overruns in Offshore Projects: TowardProductivity and Performance ImprovementProfessor Peter ED Love 6th February 2012 Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J
  2. 2. Offshore projectsBetween 1993-2003 (Merrow, 2003) 1 in 8 major offshore projects with a CAPEX ranging from US$1 million to US$3 billion a financial disaster Exceed cost and/or schedule by 40% or producing less than 50% of production capacity2010 (Det Norske Veritas, DNV) On average experience a cost overrun of 35%, and 7 months behind schedule Why?Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
  3. 3. Recurrent factors contributing to cost overruns include: Poor scope definition ≈US$3.8b US$5.2b Optimistic scheduling of design, engineering and construction Placing of orders before engineering is complete Implementation of new technology without qualification Poor interface management Fabrication yards having to build competence and resources during the project Hibernia Platform – construction costs alone increased by US$870 million Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J
  4. 4. Forms of waste in offshore projects Changes, errors, omissions → rework  Estimates of rework costs found to range from 10 to 50% of CAPEX  Lower rework in new build FPSOs  Design errors materialize during operation Non-value  Downtime: Inspection of ballast, cargo tanks, and propeller shafts, adding which involves the mobilization of inspection teams. activitiesCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
  5. 5. Preliminary observations Common design errors found during maintenance and inspection of FPSOs include: • Bow –inadequate structural design and consideration of environmental loadings • Breakdown of coating systems – poor selection and application • Tank – inadequate construction techniquesFooter text - slideshow title 30.07.2010Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
  6. 6. Generic dynamics of rework Relationship contracting Project scope • Negative impact of workflow • Production pressure ProductionFPSO interface withsubsea/topside/vessel/pipelineThe „+‟, and „-‟, respectively, classifies positive and negative consequences of an increase of Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J the original variable on the relying variable.
  7. 7. Design errors: Sleipner A failureCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J Loss resulted in 2 year delay, loss of structure and revenue US$780m
  8. 8. • Eliminate wasteful practices • Optimize resources• Streamline production flow • Improve efficiency Lean construction “Way to design production systems to minimize waste (materials, time, and effort) to generate maximum value” Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J
  9. 9. Re-think project delivery• Remove lowest cost – go for value• Eliminate competitive tendering• Introduce performance measurement into contracts• Integrated project teams• Improve workflow predictability ( eliminate buffers/wasted capacity) Source: Lean Construction Institute Curtin University is a trademark of Curtin University of Technology CRICOS Provider Code 00301J
  10. 10. BIM: From 3D → nD modellingA methodology to manage the essential design and project data in digital format throughout the an assets life cycleCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
  11. 11. Augmented realityCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
  12. 12. Dynamic planning: real-time RFID Sensors and trackingCurtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
  13. 13. Curtin University is a trademark of Curtin University of TechnologyCRICOS Provider Code 00301J
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