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B9MG126 - Project Management Tools And Techniques
‘ABC Oilfield Firefighting project’
Figure 1 Pictorial representation LNG Tank in the tank farm. - (LNG World News Staff, April 3, 2018 )
Module/Subject Title: Project Management Tools And Techniques
Lecturer Name: Paul Taaffe
Assignment Title: Comprehensive Project Plan for Providing Firefighting
System for the LNG tank.
Student (s) Name & Number:
Chetan Padme (10393059)
Kaushal Shetty (10514571)
Vibhin Rane (10511429)
Nirav Vichare (10511429)
Word count :
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1. PROJECT DESCRIPTION
‘ABC Oilfield Firefighting project’ will provide a firefighting system competent enough to
resist and control in case of any fire mishap at ABC Oilfields new tank farm. This project is of
utmost importance to ABC Oilfield. Given that the concerned API 650 petroleum tank is
ready at the facility unless a suitable firefighting system provided it can't be operational. It is
a mandatory requirement for that to happen considering the explosive nature of the fluid
which is to be stored in large quantity, the safety of the personnel working in the
environment. Also in order to be operational, the firefighting system which is to be
considered should be in accordance with all the statutory government norms, industry
codes, standard as well.
Figure 2 Deluge based fire fighting system - ('Jcamsystem', no date)
1.1. STATEMENT
To provide the necessary fire safe working environment for API 650 Petroleum Tank for ABC
Oilfield by incorporating suitable Fire Fighting System.
1.2. OBJECTIVE
To be operational.
To provide a fire safe working environment for personnel working in the Tank farm Area.
To provide safety and proper fluid handling in case of any fire emergency.
To minimize the loses in case of fire Since fluid, as well as the equipment involved, are very
expensive.
To be able to resist and control the fire until the external firefighting team comes.
1.3. ASSUMPTIONS
The design of the firefighting system should be in accordance with the necessary code,
standard.
fire protection for the following cases is considered.
The fire caused due to Electrical short circuit.
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The fire caused due to pump overpressure.
The fire caused due to vapour overpressure in the tank.
The fire caused due to instrument failure.
The fire caused due to cybercrimes.
fire protection for the following cases is not considered.
Act of GOD
Terror activities
1.4. CONSTRAINTS
Operating within the battery limits of the tank farm area.
In case of any fire caused by System malfunction/cybercrime, the response time to the
reinstate control system is uncertain.
1.5. LEGAL REQUIREMENTS
OSHA standards
NFPA regulations
CCOE approvals
Governments approvals
1.6. DEFINITIONS OF TERMS
Some key definition and necessary information are mentioned below for reference.
PRELIMINARY ENGINEERING
The preliminary engineering phase is already finished since the tank is constructed at the field
with the necessary environmental assessment as well as approval.
DESIGN CONSULTANT
Design Consultant will be contracted to provide preliminary engineering design for the firefighting
system. Consultant's engineering design in order to achieve the cost-effective design, construction,
maintenance and operations keeping the unforeseen accidents in consideration.
DESIGN REVIEW
The systematic and orderly review of design documents, drawings and specifications by all
project disciplines at pre-established milestones throughout the design phase. Design
review is done by the Key personnel at the ABC Oilfields.
PROCUREMENT
After Design review, the Procurement is to be initiated by the procurement department of
the ABC Oilfields.
INSPECTION
To be in accordance with the government as well as necessary fire safety standard the
design should be inspected by the inspection authority of the ABC oilfield. Also, a third party
inspection agency will also be appointed.
APPROVAL
Before starting, after procurement and before being operational necessary approval are to
be achieved. Approval Authority like OSHA, API, NFPA, Statutory Government are involved.
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2. ORGANIZATION AND STAFFING & MANAGEMENT CONTROL
2.1. PROJECT ORGANIZATION & WBS.
To effectively manage & oversee planning, design, construction & erection of ABC Oilfield
Firefighting Project, a fully integrated team of project management, Design Consultant,
Engineering & Procurement, Erection & inspection is established. It gives a depiction of
the function, major responsibilities key supervisors/authority included.
Figure 3 Project Organisation chart
2.2. KEY AGENCY PERSONNEL.
HUMAN RESOURCES
Human resource team will be responsible for managing resources for employees working in
the company and associated with the company through contracts. They are also responsible
for managing all human capital as mentioned below ('Humanresourcesedu', no date).
• Recruiting and staffing
• Compensation and benefits
• Training and learning
• Labour and employ relation
• Organisation development.
HR management involves creating and managing programs that are intended to increase the
effectiveness of business.
GENERAL MANAGER
GM directly involved in the project considering the level of complexity and will particularly
look after capital expenditure.
• Execution of daily task of the business process.
• Implementation of a new business policy to grow business and to achieve desired
goal set.
• Give direct authority to managers and executives to get the desired result
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• Authority for approving budget cost and approving all work activities.
PROJECT MANAGER
The project manager is responsible for the planning, controlling and effective inception of
the project until completion of the project. His/her responsibility will be as follows.
• Planning of the project and defining the scope for the approval
• Action planning and sequencing
• Creating schedule
• Cost estimation
• Risk analysis
• Intermediate between teams of ABC Oilfield and consultants.
• Obtain various statutory government, industry standard approval.
DESIGN CONSULTANT
• Preparation of design calculation, specification, specification sheets.
• Preparation of design drawing like P&ID, Civil, Structural, stand,etc.
• Assess previous design to assess fault.
ERECTION AUTHORITY
To assemble the procured items
To ensure timely commission of a facility with respect to the schedule.
INSPECTION
• The in-house Inspection team will ensure the items procured by the procurement
team are in accordance with the data received from the consultant.
• The in-house inspection team will be responsible for the safety of items procured.
• In-house inspection team Also will be responsible for the clearance of the work letter
to erection authority.
• The 3rd
party inspection team will be appointed after completion of erection as well
as the installation of the backup line to ensure all the components system is working
properly and according to the design standard.
2.3. STAKEHOLDER MANAGEMENT
• Included communication plan with respect to the individual activity.
• The arrangement of personnel meeting with a client on every component of the
project and regarding issues.
• A weekly conference call for the progress of project and goals and resolution.
• RAG framework is used to recognise the advance issue.
• Issue recognised as red on week after week in project highlighted to senior
management ('APM', no date).
• Identify and analyse the demographic and concern key in the project and
outcome.
• Acknowledgement of expertise, staff, vendors and good alliances with the
shareholder.
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2.4. PROJECT COST & CHANGE CONTROL MANAGEMENT.
Under the leadership of the Project manager, the project & document control team will look
after cost and change respectively. And collectively it is their responsibility to maintain a
hassle-free control and management of information between other departments of ABC
Oilfields like Engineering, procurement, Inspection and maintenance, Human resources, etc.
3. SCHEDULE CONTROL
3.1. ACTIVITY & RESPONSIBILITY MATRIX
Figure 5 Activity & Responsibility Matrix
Figure 4 Approximate Project Costing
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4. RISK MANAGEMENT AND INSURANCE
4.1. SCOPE
The scope of our firefighting system for the petroleum tank is to analyse various ways in
which the petroleum tank is endangered while getting the procurement of the system,
getting the system made, installation of system and maintenance of the system.
4.2. RISK IDENTIFICATION
There are various risks involved in the system on every stage even after the completion of
the project. Starting from the procurement required for the project where there can be
defects in some materials, some materials required being missed or delivery delay.
There can be a risk of employees leaving the job in between or going on holidays due to an
emergency. There can be even a problem of union due to low wages or any other issues.
This is always at high risk as the project has a timeline. The project needs to be completed
by the deadline and due to the employment issues, the project can be delayed. The
assignment of an unknowledgeable team can lead to wrong results and delay in the project.
The team size can also be an issue where over-crowding can lead to lots of mishap and
chaos due to which Project Manager may not be able to concentrate or supervise on all
team members whereas even fewer team members can create an issue a lot of work will be
managed by few members which can even lead to mishap and chaos as no job will be
perfectly done or few will be done perfectly but may lead to delay. Users with narrow
knowledge mindset can be an issue if the project is aa critical stage and needs
knowledgeable professionals. Unclear project deliverables from consultants can also create
problems. Vendor project deliverables can also be an issue. It is a medium level risk where it
is not precisely defined as estimated.
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Figure 8 Risk Assessment Matrix
Risk Risk Level (L/M/H) Likelihood of Event Risk Mitigation
Emplyoments' Working Hours
H: More than 1000
working hours (as
per employment
standards)
Certainly
Assigning a Project Manager,
engaging consultants,
comprehensive project
management approach and
communications plan
Estimated Project Duration H: 6 Months Certainly
Created comprehensive
project completion schedule
with frequent reviews
Project Team Size H: 10 Members Certainly
Comprehensive
communication plan,
oversight of project
management, time to time
meetings
Interfaces Included H: 3 or more Certainly
Immediately developing
interface control document
Users with narrow knowledge
set back
M: Sectorised to
user's
knowledgeable area
Likely
Global implication is assessed
by assigning Project Manager
Cyber Crime
H: Any attack on DCS
may lose access on
control and can lead
to
Somewhat likely High cyber security
Project Scope Creep
L: Scope is defined
which is subject to
revision
Unlikely
Scope as per defined in
project plan. It is reviewed
every month by Project
Manager to prevent
undetected scope creep
Unclear Project Deliverables
from consultant
L: Perfectly defined Unlikely
As per the amendment,
project plan is included
Vendor project deliverables
M: Not precisely
defined as it is
estimated
Somewhat likely
As per the amendment,
project plan is included
Unrealistic cost estimates
L: Considering 15% of
margin of error and
by using proven
practices, it is
thorougly predicted
by industry experts
Unlikely
As per the amendment,
project plan is included till
the new details regarding
project scope are reveaed
Unrealistic timeline estimates
M: No derailment
assumed in timeline
Somewhat likely
To avoid undetected timeline
departures, it is reviewed
every month by Project
Manager
Team Members who are not
knowledgeable of business
L: Team well versed
in business
operations impacted
by technology
Unlikely
Identifying knowledge gaps
and provide training is given
by project manager and
consultants whenever
necessary.
Project Size
Project Definition
Initial Project Risk Assessment
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4.3. RISK CONTROL
All these above-given risks can be controlled. Procurement risk can be controlled by ordering
materials a bit early and keeping two checkpoints for the materials, one at the packing and
other at the destination. The employment' working hours risk can be mitigated by assigning
a knowledgeable project manager, engaging consultants, comprehensive project
management approach and communications plan. Creating a comprehensive project
completion schedule with frequent reviews will overcome the risk of delay.
A comprehensive communication plan, oversight of project management and time to time
meetings will mitigate the risk of knowing and sharing any information between the project
team members as project manager will come to know whether to add or decrease the number
of members in the project team. The global implication is assessed by assigning a project
manager which will decrease the medium level risk of users with narrow knowledge set back.
The project plan is included s per the amendment which will mitigate the low-level risk and
medium level risk of unclear project deliverables from consultant and vendor project
deliverables respectively.
There is a low-level risk of unrealistic cost estimates where consideration of 15% of margin of
error and by using proven practices it is thoroughly predicted by industry experts. This risk is
mitigated by the project plan which is included until the new details regarding project scope
are revealed as per the amendment.
Cyber-crime can be avoided by keeping high cybersecurity system which will not allow any
hacker to hack the system and even if someone tries to then use the hacker's IP address and
MAC address it will be possible to locate the hacker. Terrorist attacks can be avoided by
building high walls around the plant so that the bullet range or sight of the tank is not visible
to common people and also by installing CCTVs everywhere i.e., in and around the plant's
compound.
4.4. INSURANCE
Insurance saves any loss happened to any product or thing due to any kind of accident or
natural calamities. In the same way, insurance to the materials purchased and the whole
system is very important as it will be given the company a good amount of money in case
there is any problem in the tank or it blasts off. Hence, insurance is necessary as it can save
lives and the loss in monetary ways in case of damage, defect or blast of the petroleum
tank.
5. PROCUREMENT
A procurement control system should be developed and implemented to ensure purchased
items such as system components and service meet established requirements and perform
as expected.
5.1. PROCUREMENT METHODOLOGIES
A precise definition of requirements and a comprehensive output specification should be
developed so that the quality, design and performance of the completed facility are not
compromised.
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The client’s output specification must be provided in the tender documents for
procurement.
In this type of procurement, contractors offer the client an integrated project team, which
includes designers and construction personnel.
For such project’s clients have less input in the design process, being involved only at the
initial or preliminary design stages, in the output specification and in the tender process.
They may need to produce a feasibility study, outline sketches, specimen designs or output
specifications, and to obtain Compulsory Purchase Orders, and they may also decide to
obtain certain statutory approvals.
Most (if not all) of the design responsibility, however, is transferred to the contractor. The
early involvement and commitment of the construction contractor in the design process
improves buildability and ensures that risk in the execution of the design and any conflict
that might arise between the designer and the contractor is a matter for those parties and
does not involve the Client.
5.2. PROCUREMENT OF DESIGN-BUILD CONTRACTS
Evaluation of safety factors such as hazards and associated risks are discussed to justify the
procurement.
The Planning Committee shall determine particularly the expectations of the requesting
entities.
The creation of a procurement strategy for procuring each requirement that will be included
in the procurement plan keeping in line with the procurement department.
The Procurement Department shall also compare and approve the resources to be procured
with the Design and engineering department as and when required in a duration of the
project start and project progress. (Jorge Lynch, no date).
APPROVAL CRITERIA:
“Procurement governance (i.e. procurement approval system) encompasses control and
direction for an organization’s procurement function via a framework of formal structures,
mandates, policies, operating procedures, delegations and other decision rights.” Famous
quote by the CHARTERED INSTITUTE OF PURCHASING AND SUPPLY.
• An outline of the steps from requisition to approval to purchase to receipt of goods
• These include limitations to codes, standards, regulations, tests, inspections,
insurers' recommendations, and other quality requirements.
• Applicable technical and administrative requirements are documented.
• The justification and suitability of the item are examined by subjecting it to various
intermediated tests pre-commissioning inspection on site or shop floor.
• fire procurement landscape is vital to ensure a healthy, dynamic, competitive and
sustainable supply base for operational firefighting and rescue equipment. (James
Jones, 18 March 2019)
5.3. PROCUREMENT OF CONSULTANTS CONTRACTS
The basis of the Engagement of Technical Services (Consultancy) is followed on the basis as
mentioned below:
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WRITTEN AGREEMENTS:
The Standard Conditions of Engagement for Consultancy Services (Technical) should be
signed or sealed, with Schedule of completed setting out the service and fee arrangements,
as well as other material which should be in place before the commencement of service.
Separate agreements and conditions of engagement should be drawn up for the following:
Feasibility study/preliminary report; and
The combined pre-construction (i.e. excluding feasibility study / preliminary report) and
construction stages of the project.
In some cases, it may be appropriate to have separate service agreements for pre-
construction and construction stages of the project.
COPYRIGHT:
Contracting Authorities should be aware that there exist two options in the Standard
Conditions of Engagement in relation to ownership of intellectual property rights in design
documents provided by the Technical Services Provider:
The first is where a royalty-free license is granted to the Contracting Authority.
The second is where the copyright is owned outright by the Contracting Authority.
PAYMENT TERMS:
Contracting authorities should state clearly in the instructions to tender and in the Schedule
attached to the Form of Tender what fee arrangements and payment procedures are to be
applied to the consultancy service contract.
5.4. AFFIRMATIVE ACTION GOALS
SPECIFIC PURPOSE OF PROCUREMENT:
The purpose of an affirmative procurement policy governs how the policy is implemented
and the goals of implementation. Its scope defines the who, what, where, when and how of
that implementation.
The policy should specify a date for implementation and indicate any seasonal or location
differences. The fulfilment of the policy relies on a specific bidding procedure, selection
process, and its application limited or expanded by the Fire Safety Industry related factors.
RESPONSIBILITIES TO BE UNDERTAKEN:
Policies should list who can institute changes and the circumstances under which decisions
to modify policies can be made.
These also enlist of decision makers and their levels of authority over the procurement
process.
Conduction of a request for bids to be issued and the policy should outline the Authorized
personnel in the organization to makes the decision regarding its acceptance or rejection.
It should also specify responsibility for monitoring the procurement process and, in case of
fraud or non-performance by the selected vendor, what would be the countermeasures that
have to be undertaken.
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6. QUALITY MANAGEMENT SYSTEM
6.1. QUALITY PLANNING
• Weekly progress reports will be taken from consultants associates as well as
inspection authorities employed.
• Strict schedule, as well as planning, is to be employed and shared with the
stakeholders in a monthly meeting.
• Capex executive and finance director will look after the proper utilization of the
budget which is allotted to the project sanctioned.
• Engage a project manager in contact with the customer call on a daily basis.
• A group should be engaged in routinely for day to day basis for communication.
Commitment should be done by email on a daily basis of a report to authorities
involved regarding the status of the project.
• If the email process is not convenient medium then private gathering on the internet
channel will be helpful with the board community. This will help the project team to
keep updated regarding the status of every activity on a regular basis.
• A project manager has to keep in touch with the project group all the time and PM
has to keep touch with the client and keep updated regarding the issues occurred
during a project to the client.
• Keeping a task on project budget is a difficult task but PM keep tracking the budget
issues before it harms the project through and through.
• Communicating meeting is a prime method to acknowledge participants regarding
the status of the task has done and what is a further task so that the team will be
prepared for his activity. will save time.
• Get stakeholder 2 -3 times while the project going on and discussed what are the
issues looked by the PM team and take proper action to set it. ('project times', no
date).
6.2. QUALITY ASSURANCE
• PM team has to disclose the quality control information to decide whether the
quality issue exists.
• The PM should keep tracking the process and probability of recurrence of the
problem and respective authority to upgrade process and expand quality.
• The project team must understand the main root cause of the problem and
investigate to ensure the required resolution.
• PM team has to have some preventive action plans for a further quality issue
('project engineer', no date).
6.3. QUALITY IMPROVEMENT
• Document control team is to be assigned for this project because the project
consists of various different equipment’s as well as accessories.
• Change control team will be there to help the project department team to look
after the changes and to avoid any unforeseen incidents because of
misinformation.
• To keep a healthy relationship with consultants, vendors as well as contractors a
confidential approach is maintained to enhance future business.
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• Quarterly training sessions are to be provided to keep the employees up to date
with the new practices as well as technology.
6.4. QUALITY CONTROL
• Project control expert creates and keeps up data that conveys attention to the
project manager and senior manager so control can be implemented.
• if the performance is set off the agreed tolerance. This issue must take the
sponsor and manager so that corrective action will be implemented by the
concerned person.
• Time-driven technique involves for a week to week or month to month reports
and surveys and progress meeting.
• Collection of progress data and to demonstrate the performance of work and
point out the areas of concern by PM ('APM', No date).
BIBLIOGRAPHY
LNG World News Staff, April 3, 2018. LNG World News Staff. [Online]
Available at: https://www.lngworldnews.com/japans-tokyo-gas-starts-building-2nd-hitachi-
lng-tank/
[Accessed 25 March 2019].
'Jcamsystem', no date. Jcamsystem. [Online]
Available at: http://www.jcamsystems.com/home/index.php/fire-sprinkler-system
[Accessed 6 April 2019].
Jorge Lynch, no date. The Procurement Classroom. [Online]
Available at: https://procurementclassroom.com/procurement-planning-and-the-
procurement-plan-why-are-they-important/
[Accessed 3 April 2019].
'Humanresourcesedu', no date. Humanresourcesedu. [Online]
Available at: https://www.humanresourcesedu.org/what-is-human-resources/
[Accessed 31 March 2019].
James Jones, 18 March 2019. LinkedIn. [Online]
Available at: https://www.linkedin.com/pulse/vision-effective-sustainable-procurement-uk-
fire-rescue-james-jones/
[Accessed 7 April 2019].
'projecttimes', no date. projecttimes. [Online]
Available at: https://www.projecttimes.com/articles/9-easy-ways-to-improve-your-
project.html
[Accessed 6 April 2019].
'projectengineer', no date. projectengineer. [Online]
Available at: https://www.projectengineer.net/project-quality-assurance-according-to-the-
pmbok/
[Accessed 6 April 2019].
'APM', No date. APM. [Online]
Available at: https://www.apm.org.uk/body-of-knowledge/delivery/integrative-
management/control/
[Accessed 5 April 2019].
'APM', no date. APM. [Online]
Available at: https://www.apm.org.uk/media/2176/global-teams-and-stakeholder-
16. 16
engagement.pdf
[Accessed 6 April 2019].
APPENDIX I
Comprehensive review of project management literature separately
attached.
APPENDIX II
Group/Individual Contribution Report
Meeting number 1 Date & Time: Names of those in Attendance:
21.3.19 @3:00p.m. (All)
Meeting number 2 Date & Time: Names of those in Attendance:
22.3.19@3:00p.m. (All)
Meeting number 3 Date & Time: Names of those in Attendance:
28.3.19@3:00p.m. (All)
Meeting number 4 Date & Time: Names of those in Attendance:
4.4.19@3:00p.m. (All)
Meeting number 5 Date & Time: Names of those in Attendance:
6.4.19@10:00a.m. (All)
Individual Contribution Report
Provide a short account of the overall contribution made by each individual
group member
Name: Chetan Padme, Overall Percentage Contributed (out of 100%) 100/100
Summary of your individual contribution to this assignment: project description, project
organization & WBS, Activity & responsibility matrix, Gantt Chart, Critical Path, project cost.
Name: Kaushal Shetty Overall Percentage Contributed (out of 100%) 100 /100
Summary of your individual contribution to this assignment: procurement methodology,
procurement design built contracts, procurement consultant contracts, affirmative action
goal
Name: Vibhin Rane Overall Percentage Contributed (out of 100%) 100 /100
Summary of your individual contribution to this assignment: Quality planning, Quality
assurance, Quality improvement, Quality control, stakeholder management, key agency
personnel
Name: Nirav Vichare Overall Percentage Contributed (out of 100%) 100/100
Summary of your individual contribution to this assignment: Risk scope, identification,
Evaluation, Risk control, insurance