3. Contents
► Introduction to Change Management
► Importance of Change Management
► Process to Manage Changes
► Responsibilities
► Methodology
► Conclusions
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4. Change Management
Change Management is an Inevitable Project Requirement
because, any project that has ever been completed has almost
certainly had changes to it’s scope
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6. Change Management
What is change?
► Change is an authorized alteration to base line scope of work initiated
by any party involved in the Project
(or)
► Change is defined as any deviation from the contractually agreed
project scope, schedule or cost.
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8. Change Management
Types
► Scope Change
► Schedule Change
► Cost change
► Interdependence change (i.e., Scope, schedule and cost changes are
interdependent and a change to one will frequently cause changes to
one or more of the others)
It is important to understand difference between a development and a
change
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10. Change Management
Necessity
► Modern day challenges in Project Execution
► Reduced timelines from Project Feasibility study to Implementation
► Less developed Front End Packages to Detail Engineering
► Early commitments on Procurement of Materials
► Early commitments on booking Fabrication yards, site contracts
In Summary, controlled change management is necessary to meet the
final Project Objectives
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12. Change Management
Address all aspects
► The basis for a good change management system starts with the
establishment of the scope baseline.
► A good scope change control system is one that makes sure that all of the
stakeholders concerned with the change are made aware that it is being
submitted, agreed upon, processed, disapproved or approved, and
implemented.
► Change management must be careful to ensure that budgets, schedules,
performance, and documentation are all changed to reflect the change.
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16. Change Management
Sequence
► Identification
► Trigger events
► Formal instructions
► External Conditions
► Contract terms
► Errors/Omissions
Pre-AFD and Post AFD changes have difference in the way they are
dealt with
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19. Change Management
Responsibilities
► PM
► To Select, establish and implement an effective and appropriate system of
Change control either database or manual system for the project and to
discuss and agree with the client.
► PEM
► To Maintain change awareness in project engineering personnel and
monitor for change activity.
► Change Coordinator
► To administer the change control procedure and change control databases
where used.
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20. Change Management
Responsibilities
► Functional Leads/ All Project Personnel
► To Monitor their own scope of work, identify potential changes and bring
them to the notice of their discipline group manager using change flags.
► Functional Manager/ Leader
► To review change flags raised by their group and bring valid flags to the
attention of Area Project Engineer/ Change coordinator.
► Area Project Engineers
► To accept or reject change flags raised by managers and other discipline
group leaders and to issue accepted change flags to the change
coordinator.
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22. Change Management
Methods of Change Control
► Review of Design Basis
► A review of key design documents shall be carried out at project outset
against the agreed technical basis
► Client Changes
► Project personnel shall bring all potential changes initiated by the client to
the attention of their PM or PEM using change flags.
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23. Change Management
Methods of Change Control
Internal Changes
► Key design documents
► Project specific listing of key design documents shall be developed under
the control of PEM for change control process immediately following the
establishment of the document management system.
► Once a key design document has been issued AFD it shall be deemed
“ frozen”.
► Any subsequent proposed internal changes (excepting to incorporate
supplier/contractor data) shall be subject to formal change control using
change flags.
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24. Change Management
Methods of Change Control
► Detail documents
► Internal changes to detail documents are unlikely to have significant
impact at least until the documents have been released “ AFC”. Personnel
shall however be alert to exceptional cases- ( Advance Revision notices)
► 3D CAD Model files
► Model files shall be considered to be in a state of development until agreed
comments resulting from the formal client model reviews have been
incorporated. Files shall thereafter be electronically “locked” and subject to
formal change control.
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25. Change Management
Methods of Change Control
Engineering Flow Diagrams
► Engineering flow diagrams are key design documents for which the state of
development at each revision is specifically defined.
► Design growth trending
► Significant change impact may result from small cumulative changes such
as
► Growth in I/O count for instrument control systems
► Growth in Electrical load requirements
► Growth on bulk material quantities taken off
► Growth in Piping Isometric drawing count
► Growth in estimated utility consumptions.
► Reports shall be provided to the Change coordinator at least monthly
to enable an analysis of the reason for any design growth to be
performed.
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26. Change Management
Methods of Change Control
Engineering Flow Diagrams
► Internal Change Review Meeting
► To reinforce the change control process, PM shall hold internal Scope
revalidation meetings on a regular basis. This meeting shall review all
issued design documents and any other means of communication where
change may result. This meeting shall call upon individuals, as necessary ,
to provide information or clarification on a issue that may result in a change
flag.
► Changes to AFC documents:
► Any proposed Internal changes to a document AFC shall only be accepted if
► The plant would otherwise constitute a health/ safety hazard
► The plant would not otherwise confirm to agreed specs.
► There is a clear and well defined financial advantage to making the change which
clearly overweighs the change impact by a significant margin.
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28. Change Management
Conclusion
► Meeting Project Objectives should be priority
► Must address interests of all Key stake holders
► Trust between stake holders (Client, Contractor, Vendors,
subcontractors) is key for successful change management
► Change Management Process should be well documented and should
stand for audit trail
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