This document discusses key factors to consider for starting a project to develop a new process plant. It outlines three main types of process plants based on size - small, medium, and large. Small plants have production volumes up to $3-5 million and timelines under one year. Medium plants have order volumes in the single or double digits, timelines of 1-3 years, and are led by a project manager. Large plants have order volumes over $500 million, timelines over two years, and teams of project managers. The document also lists technical and personal requirements for project managers and key activities in the project planning and execution phases.

1. SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Episode 25 : Project
Management

2.  Typical products of process plants:
◦ Chemistry: paints, plastics, fibres, fertilizers etc
◦ Pharmaceuticals: drugs
◦ Cosmetics: creams, lotions, cosmetic products etc
◦ Refineries: fuels, basic products for chemistry,
lubricants etc
◦ Building materials: cement, sand, gravel etcfood
industry: fats, oils, cereals, sugar etccoal: mining
and processing of coal

3.  In a contect of plant design and construction, two parties have
to be distinguished:
◦ Plant operator – wants to procure and operate a
process plant
◦ Plant constructor – who according to the agreed
scope of delivery and service, takes on the
planning, devlievry, assembly and start-up.

4.  Small plants
◦ Production volume of up to RM 3-5 million
◦ Project duration up to one yaer
◦ Many suppliers for small plants

5.  Medium-sized plants
◦ Order volumes of single or double digit amounts
◦ Project duration: 1-3 years
◦ Carried out by a project team under the leadership
of a project manager –normally handle all steps of
plant design and delivery
◦ Often include several smaller plants integrated as
components
◦ Example: food production plants, sewage plants

6.  Large-scale plant
◦ Order volume – 500 – 1 billion
◦ Duration: exceeds two years
◦ Large project teams headed by several project managers
◦ General PM – overall responsibility which involves organisational
labour only
◦ Composed of several medium-sized and multitude of small plant units
◦ Example: refineries, complete chemical complexes, steelworks

8. Technical Requirements Personal qualifications
Expert knowledge in the
disciplines:
Chemical process engineering
Thermal process engineering
Mechanical process engineering
Biological process engineering
Apparatus and pipeline engineering
Pumps and compressors
Material science
E/MC-Technology
EDP capabilities
Word Processing
Spreadsheet analysis
CAD and CAE in plant engineering
Pipe stress analysis
Communication skills
Team spirit
Cross communication within the
project team
Appearance
Stress tolerance and adaptability
Independence
Loyalty
Readiness to take on responsibility
Assertiveness
Negotiating skills
Cost consciousness
Spoken and written English
Additional foreign language
competence
Experience acquired abroad

9. PRODUCT IDEA/PRODUCT DEVELOPMENT
MARKETANALYSIS
(Product price, quantity and quality)
DETERMINATION OF INVESTMENT COSTS
(Cost Estimation Methods)
DETERMINATION OF OPERATION COSTS
(Mass, material and energy balances)
FEASIBILITY STUDY
INQUIRY
PRIVATE PUBLIC
ENVIRONMENTAL
IMPACT/ RISK ANALYSIS
PREQUALIFICATION
BID/TENDER
BASIC ENGINEERING
Activities during the project planning phase

10. DEPOSITION OF TENDER
TENDERANALYSISAND COMPARISON
SIGNATURE OF THE CONTRACT
CONTRACT NEGOTIATION
BASIC ENGINEERING
Main components Determination of the offer priceSchedulingElectric components
Process Design Civil EngineeringBalancesLayout Materials Concept
Activities during the project planning phase (continued from previous)

11. PRODUCT ORGANIZATION AND SCHEDULING
AUTHORITYAPPROVAL
DETAIL ENGINEERING
Final Process Design Building/Steel structure P&I diagrammes
Design of plant components LayoutTechnical specifications
Documentation Piping engineering Electrical engineering
PROCUREMENT
Inquiries Bids of subsuppliers Bid comparison
Contract negotiations Orders and confirmations
EXPEDITING
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Activities during the project execution phase

12. EXPEDITING
ERECTION
Site Organization
Building/steel works Electrical partsPipes, valves and fittingsComponents
COLD COMISSIONING
WARM COMMISSIONING
DEMONSTRATION OF THE GUARANTEED PERFORMANCE
ACCEPTANCE
WARRANTY
Activities during the project execution phase (continued from previous)
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13. DEFINITION
Bringing new product to market
Endeavor dealing with design,
creation and marketing of product
TARGET
Product marketable in large
quantities
Product realize at high selling
price
IDEA
Technical
‐ Suitable product has to be found
Commercial
‐ Focusing consumer goods
marketing
Research and Development
‐ Scientist and engineer conduct experiment to find a new and better
products
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14. i. Research the current price of the
product.
ii. The status of product sellable in market
by doing interview or statistic analysis.
The product should be marketable in as
large quantities as possible.
iii.
iv. The distribution of product should
continue as long as possible.
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15. Product Capacity
Type Of Project
Cost Estimation
ResourcesProfitability
Project Organization
& Scheduling
Authorities Channel
Plant Site
Financial
FACTORS
MUST!!
CONSIDER IN
STARTING A
PROJECT
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16. Location/Kind of Premises
 Plot of Land
 Operating Resources
 Labour Market
 Political Conditions
 Geographic Conditions
 Infrastructure
 Type of Building
Capacity/Availability/Lifespan
 Capacity
‐ Scheduled annual production output
‐ Depends on Sales and Market
 Availability or Operating Reliability
‐ Actual operating time of a plant in relation to
overall time
‐ Stated as a % and relates to 8760 hrs/yr
 LIFESPAN
‐ Predetermined by the management
‐ Periods range 5 to 30 years
‐ Longer lifespan, higher procurement costs
Degree of Automation
“Fully automatic” plant
 Only the control room has to be staffed
High labour cost – high degree of
automation
Low‐wage countries – cheap personnel
are sufficiently available
Legal Requirements
 Depending on the country
 Regarding permission, implementation,
operation and control of a process plant
Environmental regulations :
environmentally friendly plant
 Safety regulations
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17. Thanks for Watching
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