Right from the Start<br />Mistakes and traps to avoid while developing and planning your capital projects<br />
This presentation was originally presented by Adnan Siddiqui for an AIChE webinar on April 28, 2010. You can view a record...
Agenda<br />About capital project planning<br />Importance of good planning<br />Major decisions to be made<br />Common mi...
ConcepSys Solutions<br />Founded in 2008 to license ground breaking integrated conceptual design software – ConcepSys.<br ...
Capital Project Planning<br />Development of initial design, cost estimate, and schedule to enable financial analysis and ...
Importance of Good Planning<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
Typical FEL Process<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
FEL 1 Major Decisions<br />Capacity (product mix)<br />Location<br />Reliability<br />Future expansion/modification<br />F...
FEL 2 Major Decisions<br />Equipment sizing / type<br />Non-process scope<br />Control system strategy<br />Design standar...
FEL 3 Major Decisions<br />Equipment supplier(s)<br />OSBL scope<br />Execution strategy<br />Constructability<br />EH&S<b...
Best Practices for FEL<br />Gate reviews<br />Value Improving Practices (VIPs)<br />Attend June 2, 2010 AIChE webinar by N...
FEL 1 Mistakes<br />Premature initiation<br />Uncertain schedule, cost, capacity targets<br />Ignoring technology risks<br...
FEL 1 Traps<br />We are using proven technology<br />We will just scale up to new capacity<br />This plant is just a copy ...
FEL 2 Mistakes<br />Premature completion<br />Incomplete alternative evaluation<br />Lack of operation input<br />www.Conc...
FEL 2 Traps<br />The gray boxes can be resolved later<br />Inadequate attention to OSBL scope<br />Incomplete or dysfuncti...
FEL 3 Mistakes<br />Inadequate detail<br />Too much detail<br />Ignorance of local conditions<br />Poor resource planning<...
FEL 3 Traps<br />Scope creep<br />Wrong scope<br />Poor risk assessment<br />www.ConcepSysSolutions.com - Adnan Siddiqui<b...
Special Situations<br />Joint ventures<br />Emerging geographies<br />New technology<br />Fast track<br />Retrofits / turn...
Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />A major project is never completed on time, within budget,...
If you have too few people on a project, they can’t solve the problems. </li></ul>www.ConcepSysSolutions.com - Adnan Siddi...
Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />If you have too many, they create more problems than they ...
Summary<br />Getting conceptual design right from the start is critical to getting more bang for your capital buck in the ...
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Right From The Start

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  • Seminar Abstract“Right from the Start – Mistakes and traps to avoid while developing and planning your capital projects”Proper planning of capital projects is critical to final outcome. To achieve a project’s goals with respect to cost, schedule, quality, and operation, project teams must deliver a high quality conceptual design and project plan. This webinar will start with an overview of current best practices and tools for project planning. After sharing the latest knowledge and research from leading project management entities, the webinar will list common mistakes and traps to avoid during project planning to ensure your project’s success. This webinar should be attended by project managers, process engineers, design engineers, and others involved in developing and planning capital projects.
  • The level of detail must be sufficient to match a business or company’s financial risk tolerance.Discuss tradeoff between certainty and wasted effort for canceled projectsDiscuss impact of company culture on schedule vs. cost tradeoffs
  • The red line indicates your ability to influence project costs (your influence declines as the project proceeds – the early decisions set the project cost)The blue line is the project cumulative (can also refer to cost of changes) – adding equipment on flowsheet is much easier than adding equiment during EPC phase or in the field before startup
  • Typical front-end planning processFEL-1Led by the commercial / business team (marketing, finance, supply chain)May involved R&amp;D and senior process engineersFEL-2 Typically the first contact with engineering Core engineering team and project leadership is establishedFEL-3Engineering team expanded – contractor engagement as necessary by the owner to bring discipline depth and capacityAdd graphic to address how the process is not isolated and outside factors (market conditions, competitor capital spending, government regulations, etc.) constrain as well as influence and disrupt this process
  • Add graphic to indicate preliminary schedule and cost estimate or expectations are established in this stage
  • Resource planning includes: Engineering, construction, bulks, major equipment.
  • Right From The Start

    1. 1. Right from the Start<br />Mistakes and traps to avoid while developing and planning your capital projects<br />
    2. 2. This presentation was originally presented by Adnan Siddiqui for an AIChE webinar on April 28, 2010. You can view a recording of the webinar with the audio part at:<br />Right from the Start: Mistakes to Avoid While Planning Capital Projects(http://apps.aiche.org/chemeondemand/Preview.aspx?ID=78E438C3-8FDF-44F7-8D2C-70BD62483662)<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />AIChE Webinar<br />
    3. 3. Agenda<br />About capital project planning<br />Importance of good planning<br />Major decisions to be made<br />Common mistakes and traps to avoid<br />Recovering from poor planning<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    4. 4. ConcepSys Solutions<br />Founded in 2008 to license ground breaking integrated conceptual design software – ConcepSys.<br />Easy to use yet powerful tool for feasibility stage studies (FEL-2) of process industry projects<br />A minimum of 50% savings in time and money compared to traditional work flow and other conceptual engineering software<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    5. 5. Capital Project Planning<br />Development of initial design, cost estimate, and schedule to enable financial analysis and authorization of a capital project<br />Also referred to as:<br />Pre-Project Planning<br />Front-End Loading (FEL)<br />Front-End Engineering and Design (FEED)<br />Pre-Construction<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    6. 6. Importance of Good Planning<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    7. 7. Typical FEL Process<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    8. 8. FEL 1 Major Decisions<br />Capacity (product mix)<br />Location<br />Reliability<br />Future expansion/modification<br />Flexibility<br />Input and outputs<br />Technology<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    9. 9. FEL 2 Major Decisions<br />Equipment sizing / type<br />Non-process scope<br />Control system strategy<br />Design standards<br />Level 1 schedule<br />Long lead items<br />Black and gray boxes<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    10. 10. FEL 3 Major Decisions<br />Equipment supplier(s)<br />OSBL scope<br />Execution strategy<br />Constructability<br />EH&S<br />LOPA / PHA<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    11. 11. Best Practices for FEL<br />Gate reviews<br />Value Improving Practices (VIPs)<br />Attend June 2, 2010 AIChE webinar by Nat Schatz for more information<br />Benchmarking<br />Formal risk assessment (FMEA)<br />Quality and completeness checks<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    12. 12. FEL 1 Mistakes<br />Premature initiation<br />Uncertain schedule, cost, capacity targets<br />Ignoring technology risks<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />Image by elisharene via flickr.com<br />
    13. 13. FEL 1 Traps<br />We are using proven technology<br />We will just scale up to new capacity<br />This plant is just a copy of the existing one<br />Past performance guarantees future performance<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    14. 14. FEL 2 Mistakes<br />Premature completion<br />Incomplete alternative evaluation<br />Lack of operation input<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />Image by jonathan_moreau via flickr.com<br />
    15. 15. FEL 2 Traps<br />The gray boxes can be resolved later<br />Inadequate attention to OSBL scope<br />Incomplete or dysfunctional team<br />Making the scope fit the expected cost instead of the expected objectives<br />Lack of experienced process engineer involvement<br />Inadequate peer / expert review<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    16. 16. FEL 3 Mistakes<br />Inadequate detail<br />Too much detail<br />Ignorance of local conditions<br />Poor resource planning<br />Assumptions from FEL-2 are not verified or eliminated as needed<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />Image by proimos via flickr.com<br />
    17. 17. FEL 3 Traps<br />Scope creep<br />Wrong scope<br />Poor risk assessment<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    18. 18. Special Situations<br />Joint ventures<br />Emerging geographies<br />New technology<br />Fast track<br />Retrofits / turnarounds<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    19. 19. Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />A major project is never completed on time, within budget, or with the original team<br />Projects progress quickly until they become 85% complete.<br />When things appear to be going well, you’ve overlooked something.<br /><ul><li>Project teams hate weekly progress reports because they so vividly manifest the lack of progress.
    20. 20. If you have too few people on a project, they can’t solve the problems. </li></ul>www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    21. 21. Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />If you have too many, they create more problems than they can solve.<br />A carelessly planned project will take three times longer to complete than expected.<br />A carefully planned project will only take twice as long as expected. <br />Ten estimators will estimate the same work in ten different ways. And one estimator will estimate ten different ways at ten different times.<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    22. 22. Summary<br />Getting conceptual design right from the start is critical to getting more bang for your capital buck in the end!<br />Each phase of conceptual design has mistakes and traps to avoid.<br />Chapter 9 of Perry’s 8th Edition has more information on Front-End Loading <br />Upcoming AIChE webinar on Value Improving Practices – June 2, 2010<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
    23. 23. Want to know more?<br />Join Front-End Loader weekly email list for project management and conceptual design tips<br />www.ConcepSysSolutions.com<br />Send email to aasiddiqui@concepsyssolutions.com<br />Sign-up to be notified for short and practical seminars and webinars <br />Send email to get free copy of upcoming e-Book on process industry project conceptual design<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />

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