Commissioning and Operations


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  • Strategic risk arises from the inability to implement appropriate business plans, strategies, decision-making, resources allocation and its inability to adapt to changes in its business environment. Credit risk arises from counterparty’s inability or unwillingness to fully meet its on and/or off-balance sheet contractual obligations. Exposure to this risk results from financial transactions with a counterparty, e.g. debtors, borrowers or guarantors. Market risk arises from changes in market rates or prices. Exposure to this risk can result from market-making, dealing, and position-taking activities in markets such as interest rates, foreign exchange, equity, commodity and real estate. Liquidity risk arises from the inability to purchase or otherwise obtain the necessary funds, either by increasing liabilities or converting assets, to meet its on-and off balance sheet obligations as they come due, without incurring unacceptable losses. Operational risk refers to the risk of loss resulting from the inadequate or failed internal processes, people or systems, or from external events. This includes legal and regulatory risks. Legal and Regulatory risk arises from non-conformance with laws, rules, regulations, prescribed practices, or ethical standards in any jurisdiction in which EPF operates. Reputational risk is a risk arising from negative public opinion that will result in financial and non-financial losses, such as loss of public confidence. This may affect EPF’s ability to establish new relationships or services or continue servicing existing relationships. This risk may expose EPF to litigations.
  • Commissioning and Operations

    1. 1. Commissioning and Operations Aakash Mehrotra Achal Gupta Imran Ali
    2. 2. Purpose of the Commissioning Plan <ul><li>Provide direction for the commissioning process during construction </li></ul><ul><li>Providing resolution for issues such as </li></ul><ul><ul><li>scheduling </li></ul></ul><ul><ul><li>roles and responsibilities </li></ul></ul><ul><ul><li>lines of communication and reporting </li></ul></ul><ul><ul><li>Approvals </li></ul></ul><ul><ul><li>coordination </li></ul></ul>
    3. 3. Commissioning Goals <ul><li>The three main goals of the commissioning process are: </li></ul><ul><ul><li>Facilitate the final acceptance of the project at the earliest possible date. </li></ul></ul><ul><ul><li>Facilitate the transfer of the project to the owner’s maintenance staff. </li></ul></ul><ul><ul><li>Ensure that the comfort systems meet the requirements of the occupants. </li></ul></ul>
    4. 4. Commissioning Objectives <ul><li>Equipment is installed and started per manufacturer’s recommendations. </li></ul><ul><li>System performance with thorough functional performance testing and monitoring. </li></ul><ul><li>Verify the completeness of operations and maintenance materials. </li></ul>
    5. 5. Commissioning Process <ul><li>1. Commissioning Scoping Meeting </li></ul><ul><li>The scoping meeting brings together all members of the design, construction, and operations team </li></ul>
    6. 6. Cont… <ul><li>2. Final Commissioning Plan </li></ul><ul><li>The commissioning agent finalizes the draft Commissioning Plan using the information gathered from the scoping meeting. </li></ul><ul><li>The timeline is fine-tuned as construction progresses. </li></ul>
    7. 7. Cont… <ul><li>3. Design Intent Documentation </li></ul><ul><li>The Design Intent Summary reflects the underlying assumptions and requirements that become represented in the construction documents. </li></ul>
    8. 8. Cont… <ul><li>4. Submittals </li></ul><ul><li>The subcontractors, general contractor or A/E notify the commissioning agent of any new design intent or operating parameter changes, added control strategies and sequences of operation, or other change orders that may affect commissioned systems. </li></ul>
    9. 9. Cont… <ul><li>5. Site Observation </li></ul><ul><li>The commissioning agent makes periodic site visits to witness equipment and system installations. </li></ul>
    10. 10. Cont… <ul><li>6. Pre-functional Checklists and Startup Procedures </li></ul><ul><li>A Pre-Functional Inspection Checklist are developed and completed for all mechanical equipment being commissioned. </li></ul><ul><li>The checklists ensure that the systems are complete and operational and document the installation of components and completion of systems. </li></ul>
    11. 11. Cont… <ul><li>7. Development of Functional Test and Verification Procedures </li></ul><ul><li>The systems are run through all of the sequences of operation and the response of components is verified. </li></ul><ul><li>Testing proceeds from components to subsystems to systems, and finally to interlocks and connections between systems. </li></ul>
    12. 12. Cont… <ul><li>8. Execution of Functional Testing Procedures </li></ul><ul><li>The commissioning agent schedules functional tests through the general contractor and subcontractors. </li></ul><ul><li>Under the supervision of the commissioning agent, the installing subcontractor performs the hardware and/or software manipulations required for the testing. </li></ul><ul><li>Any deficiencies found from functional performance testing will be documented in a Deficiency Report. </li></ul>
    13. 13. Cont… <ul><li>9. Short-Term Diagnostic Monitoring </li></ul><ul><li>record system operation over a two to three week period, may be used to investigate the dynamic interactions between components in the building system. </li></ul>
    14. 14. Cont… <ul><li>10. Operations and Maintenance Manuals </li></ul><ul><li>The operation and maintenance manuals prepared by the contractors for the owner’s maintenance personnel are reviewed for completeness. </li></ul><ul><li>A database of preventative maintenance information may also be created from the materials in the O&M manuals. </li></ul>
    15. 15. Cont… <ul><li>11. Training and Orientation of Owner Personnel and Occupants </li></ul><ul><li>Effective maintenance personnel training is critical to the long term performance of the new building. </li></ul><ul><li>The commissioning agent may witness any of the training sessions. </li></ul>
    16. 16. Cont… <ul><li>12. Warranty Period </li></ul><ul><li>During the warranty period, seasonal testing and other deferred testing is completed as required to fully test all sequences of operation. </li></ul>
    17. 17. Cont… <ul><li>13. Commissioning Report </li></ul><ul><li>A final Commissioning Report will be compiled which summarizes all of the tasks, findings, and documentation of the commissioning process. </li></ul>
    19. 19. Operation Management <ul><li>The Transformation Process </li></ul><ul><li>Productivity Index </li></ul><ul><li>Process Planning </li></ul><ul><li>Material Requirement Planning </li></ul><ul><li>Layout Plan </li></ul><ul><li>Selection of Location </li></ul><ul><li>Calculation of Operational Costs </li></ul>
    20. 20. 1. The Transformation Process <ul><li>INPUT ______ </li></ul><ul><li>LABOUR </li></ul><ul><li>RAW MATERIALS </li></ul><ul><li>MACHINES & </li></ul><ul><li>EQUIPMENTS </li></ul><ul><li>TECHNOLOGY & </li></ul><ul><li>METHODS </li></ul><ul><li>CAPITAL </li></ul>TRANSFORMATION PROCESS OUTPUT ___ SERVICES OR PRODUCTS External Environment Forces
    21. 21. 2. Productivity Index <ul><li>The productivity index (P.I) can be more or less than 1. </li></ul><ul><li>P.I > 1 = business running efficiently </li></ul><ul><li>P.I < 1 = business running inefficiently </li></ul>
    22. 22. 3. Process Planning Symbol Type of Activities Description Operation Activities that modify, transform or give values to the output Transportation When materials are transported from one point to another. Inspection Measures standard of the in-process material, finished product or services Delay When in-process material is restrained in a location waiting for next activity Storage When in-process materials or finished products are stored in the storage area.
    23. 23. 4. Material Requirement Planning <ul><li>Step I : Identify and list down the raw materials required </li></ul><ul><li>Step II : Prepare the bill of materials </li></ul><ul><li>Step III: Calculate the quantity of raw material required </li></ul><ul><li>Step IV: Identify supplier </li></ul>
    24. 24. Capacity Planning <ul><li>The capacity of any production operation refers to the amount of output that can be produced within a specified time. </li></ul><ul><li>It is a method to calculate machinery and manpower requirements so that production demand based on sales forecast can be met. </li></ul>
    25. 25. Purchasing of ‘tudung’ materials Storage of ‘tudung’ materials Cutting of raw materials to size. i.e large, medium and small Quality inspection Transport the materials that have been cut to tailor’s table Sewing by tailors Ironing Packaging Storage before shipping out
    26. 26. 5. Layout <ul><li>Layout refers to the arrangement of machinery, equipment, workers and other facilities used in the operation. </li></ul><ul><li>The arrangement should be made in such a way that the production of goods and services can be done efficiently. </li></ul><ul><li>It should take into consideration the integration of several factors including work station, tool room, store, office, prayer room and toilet. </li></ul>
    27. 27. Types of layout <ul><li>Layout based on product </li></ul><ul><ul><li>The design is done according to the sequence of activity to produce the product. </li></ul></ul>
    28. 28. <ul><li>Layout based on process </li></ul><ul><ul><li>The design is based on the production process. </li></ul></ul><ul><ul><li>It is suitable for a factory producing several products that undergo a similar process. </li></ul></ul>
    29. 29. <ul><li>Layout based on marketing </li></ul><ul><ul><li>The layout is designed to utilise the available space to display goods. </li></ul></ul><ul><ul><li>Example: retailed shop and bookshop. </li></ul></ul><ul><ul><ul><li>Arrangement of goods are interactive </li></ul></ul></ul><ul><ul><ul><li>Goods are easily accessible and convenient for the customers </li></ul></ul></ul><ul><ul><ul><li>It is easy for the entrepreneur to protect goods from theft </li></ul></ul></ul><ul><ul><ul><li>The entrepreneur can maximize the return of investment form the space used. </li></ul></ul></ul>
    30. 30. 6. Physical Location <ul><li>It is crucial to choose the right location for the business because a strategic location can contribute to the success of the business. </li></ul><ul><li>The choice of location will depend on the following factors: </li></ul><ul><ul><li>Distance from the source of raw materials </li></ul></ul><ul><ul><li>Availability of manpower </li></ul></ul>
    31. 31. <ul><ul><li>Transportation facilities </li></ul></ul><ul><ul><ul><li>LPT </li></ul></ul></ul><ul><ul><li>Distance from customer </li></ul></ul><ul><ul><li>Price of premises </li></ul></ul><ul><ul><li>Other factors </li></ul></ul><ul><ul><ul><li>Utilities, banks, schools and housing, government policies and safety of surrounding. </li></ul></ul></ul>
    32. 32. 7. Operations Costs <ul><li>It is essential to determine the total operational cost in order to calculate the cost per unit of the goods produced. </li></ul><ul><li>Operations costs include costs of direct material, direct labour and overheads </li></ul>
    33. 33. <ul><li>Direct materials costs </li></ul><ul><ul><li>Money spend on materials that are directly used to produce the products or services. </li></ul></ul><ul><li>Direct labour costs </li></ul><ul><ul><li>The money paid as wages, salaries and benefits to the workers involved directly in the production of the products and services. </li></ul></ul><ul><li>Overhead costs </li></ul><ul><ul><li>Include rents, insurance, wages of indirect labour, maintenance and depreciation. </li></ul></ul>
    34. 35. Enterprise Risk Framework Strategic Risk Credit Risk Market Risk Operational Risk Liquidity Risk Investment Risk Regulatory Risk Reputational Risk Project Risk