Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
HERVE
BARON
Today’s Projects:
Challenges & Key
factors of success
Hervé Baron
Nov 29th, 2010
HERVE
BARON
Today’s Projects:
The main challenges and the Key factors of
success
Overall Contractor responsibility: EPC (E...
HERVE
BARON
Today’s Projects:
The main challenges and the Key factors of
success
Overall Contractor responsibility and meg...
HERVE
BARON
Design Procurement Manufacturing Shipping
Installation
Construction &
erection
Inspection &
tests
Hand-over
Pr...
HERVE
BARON
• Technical ?
What are the main challenges ?
• Cost ?
• Quality ?
• Schedule ?
• Safety
• Size ?
HERVE
BARON
Technical?
The processes and technology are proven, no prototype.
Quality:
The project execution systems are w...
HERVE
BARON
Size:
Not human! Mega LNG Project 75,000 tons of equipment, 42,000 tons of steel (6
Eiffel towers!)
Multiple a...
HERVE
BARON The Key factors of success?
Schedule:
=> adapt to concurrent rather than sequential execution
• Get the design...
HERVE
BARON
ENGINEERING
PROCUREMENT
CONSTRUCTION
Bill of
materials
Drawings
The Past: sequential execution
HERVE
BARON
ENGINEERING
PROCUREMENT
CONSTRUCTION
ENGINEERING PROCUREMENT CONSTRUCTION
Today: concurrent execution
HERVE
BARON
ENGINEERING
PROCUREMENT
CONSTRUCTION
ENGINEERING PROCUREMENT CONSTRUCTION
Tightened schedule changed the execu...
HERVE
BARON
Bill of
Materials 1
Bill of
Materials 2
ENGINEERING
PROCUREMENT
CONSTRUCTION
Drawings 1 Drawings 2
Today: conc...
HERVE
BARON
Bill of
Materials 1
Bill of
Materials 2
ENGINEERING
PROCUREMENT
CONSTRUCTION
Drawings 1 Drawings 2
Today: conc...
HERVE
BARON
Process
simulations
Equipment
inquiry &
selection
Foundation
drawings
Equipment
list & duty
Vendor
Engineering...
HERVE
BARON
Safety valves
duty
Safety valves
inquiry and
purchase
Safety valves
sizing & drawings
Safety valves
location &...
HERVE
BARON Learn more, much more on Engineering
A unique synthesis for the
busy Project professional
 270 pages
 300 il...
HERVE
BARON
Table of Contents
Learn more, much more on Engineering
HERVE
BARON
Order direct on the publisher website:
http://www.editionstechnip.com/en/catalogue-
detail/1111/oil-gas-engine...
HERVE
BARON Integrate the work processes
Engineering to up-date the Construction
sub-contractor with work volumes and
deli...
HERVE
BARON Integrate the work processes
• Constructability reviews
• Pre-fabrication
• Engineering schedule to
match Cons...
HERVE
BARON Avoid changes
Sources of changes:
• Inherited/Open technical issues
• Design development & Reviews
• Client’s ...
HERVE
BARON Know your Project’s progress
The principles:
• Draw the list of work items, total = 100%
• Actual progress = Σ...
HERVE
BARON Set-up an accurate progress measure
The overall picture is accurate…
If :
• its derives from progress of
eleme...
HERVE
BARON How are the electrical works doing?
How to monitor construction progress, the case of Electrical cables for a ...
HERVE
BARON
Individual item (cable) and work step (pull/gland/terminate) status
Σ
How are the electrical works doing?
HERVE
BARON
“ You get what you inspect, not
what you expect “
• Know your supplier work
process/steps
• Implement tight fo...
HERVE
BARON Know what drives the overall duration
For the explanation, please go to:
”The Oil & Gas Engineering Guide”, 2n...
HERVE
BARON Know what drives the overall duration
HERVE
BARON
http://www.toblog.fr/en/baron.html
You enjoyed this presentation?
Share my experience on other topics:
 Engin...
Upcoming SlideShare
Loading in …5
×

EPC Projects execution keys

33,844 views

Published on

Keys to master the execution of today's large EPC Projects

Published in: Education, Business, Technology

EPC Projects execution keys

  1. 1. HERVE BARON Today’s Projects: Challenges & Key factors of success Hervé Baron Nov 29th, 2010
  2. 2. HERVE BARON Today’s Projects: The main challenges and the Key factors of success Overall Contractor responsibility: EPC (Engineering, Procurement, Construction) Mega Projects: > USD 1bln Multiple locations & actors: Low cost centers, Construction sub-contracted Schedule: Drastically tightened
  3. 3. HERVE BARON Today’s Projects: The main challenges and the Key factors of success Overall Contractor responsibility and mega project: Client leaves interface responsibility with Contractor On-Shore vs Off-Shore, different set-up: On-shore: must set-up Temporary Site facilities and camp in remote location vs Off-Shore: at a shipyard
  4. 4. HERVE BARON Design Procurement Manufacturing Shipping Installation Construction & erection Inspection & tests Hand-over Project execution synoptic
  5. 5. HERVE BARON • Technical ? What are the main challenges ? • Cost ? • Quality ? • Schedule ? • Safety • Size ?
  6. 6. HERVE BARON Technical? The processes and technology are proven, no prototype. Quality: The project execution systems are well developed and standardized: vocabulary, methods and tools (planning, progress measurement, management of change, plant mechanical completion etc.) and fairly standard throughout the industry. Cost? Lump Sum Contract: quantities increase & market conditions risks with CONTRACTOR. Precise specifications, list of approved vendors make the Contract well nailed down for Company. Schedule: Large projects must now be completed in 36 months vs 45 months a few years ago. Schedule risk is with CONTRACTOR: both liquidated damages and time related costs What are the main challenges ?
  7. 7. HERVE BARON Size: Not human! Mega LNG Project 75,000 tons of equipment, 42,000 tons of steel (6 Eiffel towers!) Multiple and ever changing actors, e.g. Engineering home office+ low cost centers Construction is sub-contracted The challenge is to keep control of the project Safety challenge Mega Projects 25,000 people at peak, 80 nationalities Various levels of education, supervision, time pressure Diffusion of safety culture: raise awareness, STOP card etc. Management leadership: leadership by example: safety walkthrough, safety talks… What are the main challenges ?
  8. 8. HERVE BARON The Key factors of success? Schedule: => adapt to concurrent rather than sequential execution • Get the design input early… but get it right! • Avoid changes and re-works • Integrate the E, P and C work processes Size: => Develop and implement precise controls • Know your actual progress! • Control your suppliers and sub-contractors
  9. 9. HERVE BARON ENGINEERING PROCUREMENT CONSTRUCTION Bill of materials Drawings The Past: sequential execution
  10. 10. HERVE BARON ENGINEERING PROCUREMENT CONSTRUCTION ENGINEERING PROCUREMENT CONSTRUCTION Today: concurrent execution
  11. 11. HERVE BARON ENGINEERING PROCUREMENT CONSTRUCTION ENGINEERING PROCUREMENT CONSTRUCTION Tightened schedule changed the execution from sequential to concurrent. This drove the project to sharpen controls over its execution: identify and focus on critical path, pro-actively manage interfaces etc. Today: concurrent execution
  12. 12. HERVE BARON Bill of Materials 1 Bill of Materials 2 ENGINEERING PROCUREMENT CONSTRUCTION Drawings 1 Drawings 2 Today: concurrent execution Derived challenges: • Get the design input early • Avoid changes and re-works • Integrate the E, P and C work processes
  13. 13. HERVE BARON Bill of Materials 1 Bill of Materials 2 ENGINEERING PROCUREMENT CONSTRUCTION Drawings 1 Drawings 2 Today: concurrent execution Engineering/Procurement interface: Close coordination for anticipated orders and revision of quantities, including cancellation etc. Engineering/Construction Interface: Prioritization based on start-up and construction sequence Understanding of mutual needs, agreement on deliverables Regular up-dates (work volumes and delivery schedule) by Engineering to Construction Integration of tools (IT)
  14. 14. HERVE BARON Process simulations Equipment inquiry & selection Foundation drawings Equipment list & duty Vendor Engineering Vendor data & drawings CoolerCooler Engineering is the integrator of the Plant equipment, and is highly dependent on vendor data Getting the design input early
  15. 15. HERVE BARON Safety valves duty Safety valves inquiry and purchase Safety valves sizing & drawings Safety valves location & piping routing Piping calcs & supports Steel structure design and drawings Purchase steel Fabrication Shipping Structure at Site Number, size estimates Supports & loads estimates Engineering must be right first time, which requires experience, good coordination between disciplines and anticipation But get it right!
  16. 16. HERVE BARON Learn more, much more on Engineering A unique synthesis for the busy Project professional  270 pages  300 illustrations
  17. 17. HERVE BARON Table of Contents Learn more, much more on Engineering
  18. 18. HERVE BARON Order direct on the publisher website: http://www.editionstechnip.com/en/catalogue- detail/1111/oil-gas-engineering-guide-the.html Learn more, much more on Engineering
  19. 19. HERVE BARON Integrate the work processes Engineering to up-date the Construction sub-contractor with work volumes and delivery schedules for Construction sub- contractor to plan and mobilize efficiently The Construction Sub-contractor is paid a fixed amount for a ton of steel installed It is uncertain about the actual delivery schedule of drawings and materials, wants to avoid stand-by
  20. 20. HERVE BARON Integrate the work processes • Constructability reviews • Pre-fabrication • Engineering schedule to match Construction priorities/sequences • Engineering deliverables tailored to construction execution needs Develop Engineering / Construction synergies
  21. 21. HERVE BARON Avoid changes Sources of changes: • Inherited/Open technical issues • Design development & Reviews • Client’s new requirements • 3rd party at interface Resist avoidable changes – Contractual management Impact of changes is exponential with time: implement early! • Interface management, • System to identify all impacts and track implementation of changes Avoidable/ Unavoidable ?
  22. 22. HERVE BARON Know your Project’s progress The principles: • Draw the list of work items, total = 100% • Actual progress = Σ individual progress over all work items The challenge: • The list of work items keeps changing – difficulty to keep track • The total work volume (100%) keeps changing • Increase by up to 30-50% are common The keys: • Overall progress from detailed breakdown by individual work item/steps • Monitoring from up-to-date list of work items
  23. 23. HERVE BARON Set-up an accurate progress measure The overall picture is accurate… If : • its derives from progress of elementary work items, • It reflects the true work volume, i.e., is based on up-dated list of work items, Only through detailed status, broken down by individual work item and work step completion can one ascertain the exact progress of the work.
  24. 24. HERVE BARON How are the electrical works doing? How to monitor construction progress, the case of Electrical cables for a FPSO: 254 km of Electrical cablesto pull, gland, terminate. What is the progress?
  25. 25. HERVE BARON Individual item (cable) and work step (pull/gland/terminate) status Σ How are the electrical works doing?
  26. 26. HERVE BARON “ You get what you inspect, not what you expect “ • Know your supplier work process/steps • Implement tight follow- up/expediting • Access you supplier's systems Control your suppliers and sub-contractors
  27. 27. HERVE BARON Know what drives the overall duration For the explanation, please go to: ”The Oil & Gas Engineering Guide”, 2nd Edition”, Herve Baron, Editions Technip, Mars 2015 http://www.editionstechnip.com/en/catalogue-detail/1111/oil-gas-engineering-guide-the.html
  28. 28. HERVE BARON Know what drives the overall duration
  29. 29. HERVE BARON http://www.toblog.fr/en/baron.html You enjoyed this presentation? Share my experience on other topics:  Engineering  Contract Management  Project Control Attend my classroom training List and schedule of coming sessions at: Go for more!

×