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Execution of Copper Rod Plant in Time in Cost

Execution of Copper Rod Plant in Time in Cost

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  • This warranted a concurrent engineering concept with exhaustive networking on project schedule and time monitoring

Execution of  Copper Rod Plant Execution of Copper Rod Plant Presentation Transcript

  • Execution of A Copper Plant –A Case Study
    Securing, Planning, and Executing
    Technical Consulting Assignment
    CDC-CTC Practical Session on 5th June 2011 @9.30 am – 13.45pm
    Consultancy Development Centre
    India Habitat Centre
    Lodhi Road, New Delhi
  • CONTENTS
    Project Management
    Project Overview
    Securing
    Conceptualization
    Process Technology
    Implementation
    Design & Engg. Flow Chart
    Engineering/Scheduling
    Basic Engineering
    Detailed Engineering
    Procurement Services
    Project Planning, Monitoring & Control Flow Chart
    Project Management
    Inspection & Expediting
    Construction Supervision
    Assistance in Plant Commissioning
    Measures taken for Fast Track Implementation
    Conclusion
  • PROJECT MANAGEMENT
    “It is an art and science of converting a vision into reality.”
    Project Management Institute (PMI), USA,
    describes project management as the application of knowledge , skills, tools, and techniques to project activities to meet project requirements.
  • PROJECT MANAGEMENT
    • Good Project Management is vital to the success of businesses .
    • In today’s competitive business world project management enable to deliver high- quality results on time and within budget.
    • Good leadership, effective systems and making good judgments are vital in project management.
  • Delay in projects had cost Government Rs. 55,175 Crores
    Source: SaubhadroChatterji & DevikaBanerji, Business Standard, New Delhi May 28, 2010
    Out of the 601 projects undertaken between 2004-05 and 2009-10, the government delivered just 54 either on time or ahead of schedule.
    As on Dec. 2009, out of 950 central sector projects costing more than Rs 20 crore or above under implementation, 495 are delayed.
    Reasons for delays:
    Slow progress,
    Fund constraints,
    Land acquisition problems,
    Environmental clearances,
    Delay in supply of equipment
    Law and order problem
  • Delay in projects had cost Government Rs. 55,175 Crorescontd…
  • Essentials for A Good Project Management
    Understand the role of project.
    Aspire to succeed.
    Plan for success.
    Manage your costs.
    Lead and inspire your team.
    Turn your plan into reality .
    Maximize project learning .
  • PROJECT OVERVIEW
  • Birla Copper Plant
    Source: Birla Copper Web site http://www.birlacopper.com/
  • Salient Features
    Source: Birla Copper Web site http://www.birlacopper.com
  • SECURING
  • Securing
    Birla group approached us in June 1992 for setting up of a Copper Foil Plant.
    It was suggested that with financial reform in place, it is prudent to set up an Integrated Green Field Copper plant to produce copper cathodes and value added products like CC Rods and foils.
    We provided the basic information like; demand-supply, capital cost, status of technology, etc., enabling Birla Group to make a decision.
    Birla Group commissioned us for the preparation of TEFR, Process selection & Site selection reports in August 1992.
  • Project Proposal Report
    Tentative process route
    Tentative product-mix
    Broad major technological and auxilliaries’ facilities
    Indicative requirement of raw materials
    Indicative requirement of services
    Indicative requirement of land
    Estimation of tentative capital costs
  • Consultants Involvement
  • Consultants Involvement
  • CONCEPTUALLIZATION
  • Site Selection Study
    Country wide survey by a team of engineers to identify the various sites based on the following criterion:
    Proximity to sea or port for import of large quantities of Copper concentrate : Specific consumption around three times the weight of metal produced.
    Assessment of availability of arid & non- agricultural land both for the plant , waste dump & housing.
    Assessment of infrastructure: Rail, Road, Port, Power, & Water.
    Proximity to a Chemical & fertilizer plants for disposal of 1,300 t/day of sulphuric acid produced.
    Assessment of availability of skilled & unskilled man power.
    Estimation of differential costs , Financial and Cost benefit analysis.
    FINAL SELECTED SITE: Lakhigam, Dahej, Dist. Bharuch, Gujarat – See the Map
  • Plant Location
    Dahej, Dist. Bharuch, Gujarat
  • Selection of Technology
    The worldwide available Copper plant technology were evaluated based on the desk study and interaction with various technology, know-how suppliers. Order of preferences were given and Outokumpu Flash Smelting Technology for Copper plant and Southwire for C C Rod plant recommended.
    Birla Group had discussions with the know-how supplier and also visited various Copper smelters worldwide.
    Decision to set up a plant was taken in mid 1994.
  • Techno-Economic Feasibility Report (TEFR)
    Finalization of product-mix
    Finalization of site
    Finalization of process route
    Development of project concept along with process-cum-material flow, and Plant Layout
    Finalization of services and infrastructures requirement
    Estimation of capital costs, production costs and financial parameters and sensitivity analysis.
    In the context of the time, when the disposal/ marketing of such a large quantities of sulphuric acid produce was a problem, Birla Group was advised for value addition by converting it to phosphoric acid and fertilizer.
  • PROCESS TECHNOLOGIES
  • Technology
    Source: Birla Copper Web site http://www.birlacopper.com
  • Major Plant Units
    Concentrate Receipt and Storage
    Smelter plant
    Refinery plant
    Sulphuric acid plant
    Precious metals recovery plant
    C C Rod plant
    Oxygen plant
    Effluent treatment plant
    By others:
    Jetty
    Phosphoric acid plant
    DAP Fertilizer plant
    Coal Based thermal Power plant
  • Brief Process description
    Copper is extracted from various ores (Sulphideand /or oxide) or recovered from waste and scrap.
    Copper is recovered from its sulphide ores by a pyro-metallurgical extraction process in which the copper concentrate ore is smelted in a furnace to drive off excess sulphur and to produce copper matte.
    The matte is treated in a converter to eliminate most of the iron and sulphur and produce blister copper.
    The blister copper is fire refined in a furnace to produce fire-refined copper anodes.
    Anodes are further refined by electrolysis to produce high grade copper.
    Marketable products received from this process are called Copper cathodes.
    In an additional plants cathodes are further cast into rods.
  • Captive Jetty
    Pipe conveyor 3.2 km long,
    Capacity: 1,800 t/hr.
    Source: Birla Copper Web site http://www.birlacopper.com
  • Flash Furnace
    Source: Birla Copper Web site http://www.birlacopper.com
  • Converter Furnace Tapping
    Source: Birla Copper Web site http://www.birlacopper.com
  • Anode Furnace
    Source: Birla Copper Web site http://www.birlacopper.com
  • Anodes Casting
    Source: Birla Copper Web site http://www.birlacopper.com
  • Electro Refinning
    Source: Birla Copper Web site http://www.birlacopper.com
  • Refinery Crane
    Source: Birla Copper Web site http://www.birlacopper.com
  • Stripped Copper Cathodes
    Source: Birla Copper Web site http://www.birlacopper.com
  • Copper Cathodes
    Source: Birla Copper Web site http://www.birlacopper.com
  • Continuous Cast Copper Rod Plant
    Source: Birla Copper Web site http://www.birlacopper.com
  • First Copper Rod Production
  • Oxygen Plant
    Source: Birla Copper Web site http://www.birlacopper.com
  • Phosphoric Acid Plant
    Source: Birla Copper Web site http://www.birlacopper.com
  • First Copper Rod Despatch Ceremony
  • First Copper Rod Despatch Ceremony Contd…
  • IMPLEMENTATION
  • Consultants Involvement
  • Birla Copper Project
  • Birla Copper Project
  • Design & Engineering Flow Chart
    Quality Control
    Award of Contract
    Tech. Data from Suppliers
  • Basic Engineering
    The offers for technology was obtained from : Outokumpu, Lurgi, Mitsubishi, MESCO.
    We also provided assistance in selection, and participation in discussions to Birla Copper.
    Outokumpu, Finland was selected to provide Technical know-how and basic engineering.
    Effective date of contract 28th February 1995.
    Kick-off meeting held in March 1995 at Bangalore - to decide:
    Design criteria
    Supply of Complete Basic Engineering in 8 months.
    Preliminary civil & building load data by June 1995.
    Frequent interactions at monthly interval were held during the preparation of basic engineering.
  • Engineering/Scheduling
    Concurrent Engineering concreting
    An optimistic & Compressed schedule was drawn to achieve various milestones:
    Basic Engineering
    Detailed Engg.
    Construction.
    Erection
    Commissioning
  • Detailed Engineering
    Preliminary data on Plant layout, load data for major buildings and plant & equipment was obtained from Outokumpu June 1995.
    An engineering team was deputed to the office of Outokumpu, Finland in June 1995 and Southwire, USA in Nov. 1995.
    Civil drawings for construction at site were released from Sept. 1995.
    Site leveling work started from Sept. 1995
    First piling work started from Dec. 1995 - See Photograph.
    Foundation stone was laid by Mr. K M Birla on 26th January 1996.
    Quantity of Civil Works RCC: 87,000 m 3.
    Quantity of Structural Steel : 12,500 tonnes.
  • Procurement Services
    Package concept of implementation was conceived . Total number of packages - 120:
    Civil
    Structural
    Mechanical
    Electrical
    Erection
    Long delivery items, action taken immediately on receipt of basic engineering in July 1996:
    Oxygen plant
    Steam dryer
    Polymer Concrete Electrolytic cells.
    Waste heat boiler.
    Anodes Casting Machine.
  • Procurement Services contd…
    Procurement activities:
    Preparation of technical specifications
    Issue of tenders
    Receipt of offers
    Discussions with vendors
    Evaluation of offers
    Placement of offers by the client.
    Time taken for most of the packages for all the above activities: 4-6 weeks.
  • Project Planning, Monitoring & ControlFlow Chart
    PROGRESS/ STATUS /CRITICAL ACTIVITY REPORTS
    MIS / HOLD-UP/ SLIPPAGE REPORTS
  • Project Management
    Master schedule for implementation was prepared on Primavera software.
    Schedule was monitored on monthly, fortnightly, and weekly basis.
    Entire project schedule was broken up in more than 1,000 activities based on work break-down structure.
    Project schedule output was in the form of 3-level reports:
    Level – 1 – Overall summary for top management.
    Level – 2 – Package wise details for senior management.
    Level – 3 – Break up of each activity for working level.
    Detailed monthly progress reports giving status for: Detailed Engineering, Procurement Services and site construction.
    Deviation list ,areas of concern & actions for corrective measures for management of Birla Group.
  • Inspection & Expediting
    A special Task force comprising of six(6) Expediting Engineers located at Mumbai, Delhi, Bangalore, Chennai, and Kolkatta exclusively assigned the task of follow up with vendors on a day to day basis and report the status of manufacturing & dispatches. They also bridged the Design & technical issues, if any, by referring directly to the design offices.
    The plant & machinery manufactured at various vendor’s works were carried out by different offices located all over the country.
    Frequent visits were also made by the of Project coordinators as well by client’s engineers to vendor’s works to resolve any issue across the table.
  • Inspection & Expediting:
  • Inspection & Expediting Contd…
  • Inspection & Expediting Contd…
  • Inspection & Expediting Contd…
  • Inspection & Expediting Contd…
  • Inspection & Expediting Contd…
  • Construction Supervision
    Highly experienced and qualified engineers deployed at site.
    A small design office was established to provide site modification and any urgent designing of civil & structural works.
    Peak time deployment of engineers: 40.
  • Consultant’s Site Office
  • Piling Construction as on Dec. 1995
  • Piling Construction Contd…
  • Piling Construction Contd…
  • Piling Construction Contd…
  • Construction
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction contd…
  • Construction - Quality Assurance
  • Jetty Construction as on May 1997
  • Jetty & Plant Construction as on May 1997
  • Assistance in Plant Commissioning
    A team of engineers were deputed to site for around six months for testing and commissioning activities and initial periods of commercial production as one team along with clients engineers.
    CC Rod plant was originally scheduled to be commissioned by September 1997 but was commissioned in March 1997.
  • Plant commissioning
  • Plant Commissioning
  • Plant Commissioning
  • Plant Commissioning
  • Plant Commissioning
  • Plant Commissioning
  • MEASURES TAKEN FOR FAST TRACK IMPLEMENTATION
  • Measures Taken for Fast track Implementation of Copper Rod Plant
    A dedicated multi–discipline team of engineers was set-up at the Delhi office.
    A team of engineers - Consultant & Client were sent to two plants in USA to see & visualize the plant layout, design, operational & maintenance aspects.
    Plant layout was frozen and immediately on return design of building structural work initiated – load data released – piling layout and design drawings were released progressively to site for construction. Piling work started in Dec. 1995.
    Analogous drawings & photographs for a similar plant being constructed at East Asia were requested from Southwire, USA – the Know How & Basic Engg. Supplier.
  • Measures Taken for Fast track Implementation of Copper Rod Plant Contd..
    Basic planning work on piling layout & design drawing were taken up based on the analogous drawings.
    Load data drawings for proprietary equipment of Southwire/ Morgan like furnace, Caster wheel, Shear M/c, No-Twist rolling mill etc., could be prioritized being of modular design.
    Drawing were released progressively for piling construction keeping view the engagement, location & movement of the piling machine at site – means a constant communication with site.
  • Measures Taken for Fast track Implementation of Copper Rod Plant Contd..
    The following exclusive decision were taken – a deviation from the overall philosophy of implementation of copper plant :
    Mechanical package – on turnkey concept. – Petron Engg., Mumbai
    Electrical Package – on turnkey concept. – Sonaa Engineers, Udaipur
    Separate Package for Copper rod coiling, strapping & packaging machine. – ITW Signode, Hyderabad.
    Separate Cooling towers – procurement exclusively for the copper rod plant.
    Separate package for supply of EOT Cranes for Rod Plant & mechanical work shop.
    Separate procurement of a dedicated Lathe machine for Casting wheel.
    Separate procurement of shop QA laboratory equipment.
    Staggered supply with a Different Colored sheeting.
    Staggered supply of Electrical Transformers and PCCs
    Staggered supply of LPG bullets.
    Staggered supply of Forklift trucks. Procurement of Copper cathodes for a period Refinery plant’s commissioning is differed.
  • Measures Taken for Fast track Implementation of Copper Rod Plant Contd..
    The basic engineering received for the fabrication equipment, were threadbare reviewed jointly by the client, consultants & the contractor and were found to be equivalent to manufacturing drawings and the contractor were therefore asked to start manufacturing based on the same – rather than reinventing the wheel.
    Fortnightly initially & later followed by monthly design review meetings were conducted alternatively at the consultants office & contractors offices.
    Fortnightly & monthly visit by client’s & consultant’s package in charge, over and above the visits made by the dedicated expeditors team of 6 (Six) to contactors.
  • Measures Taken for Fast track Implementation of Copper Rod Plant Contd..
    Approval & review of drawings, documents of contractor, vendor to be done within a week.
    Across the table approval of drawings/ documents of vendors.
    Approval & payment by client of contractors bills within a week.
  • Constraints
  • Constraints contd…
  • Constraints contd…
  • Award
    Made from First Copper Rod Produced
  • CONCLUSION
  • Success of a Project
    The delivery of a successful project relies on a number of basic parameters these include:
    A professional team who are both competent managers and have the necessary technical and contractual background, and management skills.
    A well designed project.
    A well specified project.
    A well planned and implemented project.
    A well managed project.
    An innovative forward looking thinking process of solving problems with an open mind.
  • S – Curve A Project Management Monitoring Tool
  • Design of a S – Curve
  • Acknowledgment
    Author Thankfully acknowledges the sources of information on the “Delays in the Project Costs” paper Published on 28th May 2010 in Business Standard and the technical information and the Photographs, where ever indicated.
    Author also thank the management of CDC for giving me an opportunity to present this practical ‘Case Study’ for the benefit of the esteem audience.
  • THANKS YOU
    Presented By:
    P R CHANDNA,
    Director & Principal Consultant,
    Yashad Consultancy Pvt. Ltd.,
    Flat# 710, MISAS Apartment, Opp. Fortis Hospital,
    C-58/10, Sector-62, NOIDA, UP – 201301 – INDIA
    Tele Fax: +91 120 4570710, Mobile: +91 9999724888
    E-mail:prchandna@hotmail.com