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Right from the Start<br />Mistakes and traps to avoid while developing and planning your capital projects<br />
This presentation was originally presented by Adnan Siddiqui for an AIChE webinar on April 28, 2010. You can view a record...
Agenda<br />About capital project planning<br />Importance of good planning<br />Major decisions to be made<br />Common mi...
ConcepSys Solutions<br />Founded in 2008 to license ground breaking integrated conceptual design software – ConcepSys.<br ...
Capital Project Planning<br />Development of initial design, cost estimate, and schedule to enable financial analysis and ...
Importance of Good Planning<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
Typical FEL Process<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
FEL 1 Major Decisions<br />Capacity (product mix)<br />Location<br />Reliability<br />Future expansion/modification<br />F...
FEL 2 Major Decisions<br />Equipment sizing / type<br />Non-process scope<br />Control system strategy<br />Design standar...
FEL 3 Major Decisions<br />Equipment supplier(s)<br />OSBL scope<br />Execution strategy<br />Constructability<br />EH&S<b...
Best Practices for FEL<br />Gate reviews<br />Value Improving Practices (VIPs)<br />Attend June 2, 2010 AIChE webinar by N...
FEL 1 Mistakes<br />Premature initiation<br />Uncertain schedule, cost, capacity targets<br />Ignoring technology risks<br...
FEL 1 Traps<br />We are using proven technology<br />We will just scale up to new capacity<br />This plant is just a copy ...
FEL 2 Mistakes<br />Premature completion<br />Incomplete alternative evaluation<br />Lack of operation input<br />www.Conc...
FEL 2 Traps<br />The gray boxes can be resolved later<br />Inadequate attention to OSBL scope<br />Incomplete or dysfuncti...
FEL 3 Mistakes<br />Inadequate detail<br />Too much detail<br />Ignorance of local conditions<br />Poor resource planning<...
FEL 3 Traps<br />Scope creep<br />Wrong scope<br />Poor risk assessment<br />www.ConcepSysSolutions.com - Adnan Siddiqui<b...
Special Situations<br />Joint ventures<br />Emerging geographies<br />New technology<br />Fast track<br />Retrofits / turn...
Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />A major project is never completed on time, within budget,...
If you have too few people on a project, they can’t solve the problems. </li></ul>www.ConcepSysSolutions.com - Adnan Siddi...
Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />If you have too many, they create more problems than they ...
Summary<br />Getting conceptual design right from the start is critical to getting more bang for your capital buck in the ...
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Right From The Start

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Right From The Start

  1. 1. Right from the Start<br />Mistakes and traps to avoid while developing and planning your capital projects<br />
  2. 2. This presentation was originally presented by Adnan Siddiqui for an AIChE webinar on April 28, 2010. You can view a recording of the webinar with the audio part at:<br />Right from the Start: Mistakes to Avoid While Planning Capital Projects(http://apps.aiche.org/chemeondemand/Preview.aspx?ID=78E438C3-8FDF-44F7-8D2C-70BD62483662)<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />AIChE Webinar<br />
  3. 3. Agenda<br />About capital project planning<br />Importance of good planning<br />Major decisions to be made<br />Common mistakes and traps to avoid<br />Recovering from poor planning<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  4. 4. ConcepSys Solutions<br />Founded in 2008 to license ground breaking integrated conceptual design software – ConcepSys.<br />Easy to use yet powerful tool for feasibility stage studies (FEL-2) of process industry projects<br />A minimum of 50% savings in time and money compared to traditional work flow and other conceptual engineering software<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  5. 5. Capital Project Planning<br />Development of initial design, cost estimate, and schedule to enable financial analysis and authorization of a capital project<br />Also referred to as:<br />Pre-Project Planning<br />Front-End Loading (FEL)<br />Front-End Engineering and Design (FEED)<br />Pre-Construction<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  6. 6. Importance of Good Planning<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  7. 7. Typical FEL Process<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  8. 8. FEL 1 Major Decisions<br />Capacity (product mix)<br />Location<br />Reliability<br />Future expansion/modification<br />Flexibility<br />Input and outputs<br />Technology<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  9. 9. FEL 2 Major Decisions<br />Equipment sizing / type<br />Non-process scope<br />Control system strategy<br />Design standards<br />Level 1 schedule<br />Long lead items<br />Black and gray boxes<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  10. 10. FEL 3 Major Decisions<br />Equipment supplier(s)<br />OSBL scope<br />Execution strategy<br />Constructability<br />EH&S<br />LOPA / PHA<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  11. 11. Best Practices for FEL<br />Gate reviews<br />Value Improving Practices (VIPs)<br />Attend June 2, 2010 AIChE webinar by Nat Schatz for more information<br />Benchmarking<br />Formal risk assessment (FMEA)<br />Quality and completeness checks<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  12. 12. FEL 1 Mistakes<br />Premature initiation<br />Uncertain schedule, cost, capacity targets<br />Ignoring technology risks<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />Image by elisharene via flickr.com<br />
  13. 13. FEL 1 Traps<br />We are using proven technology<br />We will just scale up to new capacity<br />This plant is just a copy of the existing one<br />Past performance guarantees future performance<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  14. 14. FEL 2 Mistakes<br />Premature completion<br />Incomplete alternative evaluation<br />Lack of operation input<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />Image by jonathan_moreau via flickr.com<br />
  15. 15. FEL 2 Traps<br />The gray boxes can be resolved later<br />Inadequate attention to OSBL scope<br />Incomplete or dysfunctional team<br />Making the scope fit the expected cost instead of the expected objectives<br />Lack of experienced process engineer involvement<br />Inadequate peer / expert review<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  16. 16. FEL 3 Mistakes<br />Inadequate detail<br />Too much detail<br />Ignorance of local conditions<br />Poor resource planning<br />Assumptions from FEL-2 are not verified or eliminated as needed<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />Image by proimos via flickr.com<br />
  17. 17. FEL 3 Traps<br />Scope creep<br />Wrong scope<br />Poor risk assessment<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  18. 18. Special Situations<br />Joint ventures<br />Emerging geographies<br />New technology<br />Fast track<br />Retrofits / turnarounds<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  19. 19. Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />A major project is never completed on time, within budget, or with the original team<br />Projects progress quickly until they become 85% complete.<br />When things appear to be going well, you’ve overlooked something.<br /><ul><li>Project teams hate weekly progress reports because they so vividly manifest the lack of progress.
  20. 20. If you have too few people on a project, they can’t solve the problems. </li></ul>www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  21. 21. Bonus Content<br />Seven Laws of Projects (Matthew E. May)<br />If you have too many, they create more problems than they can solve.<br />A carelessly planned project will take three times longer to complete than expected.<br />A carefully planned project will only take twice as long as expected. <br />Ten estimators will estimate the same work in ten different ways. And one estimator will estimate ten different ways at ten different times.<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  22. 22. Summary<br />Getting conceptual design right from the start is critical to getting more bang for your capital buck in the end!<br />Each phase of conceptual design has mistakes and traps to avoid.<br />Chapter 9 of Perry’s 8th Edition has more information on Front-End Loading <br />Upcoming AIChE webinar on Value Improving Practices – June 2, 2010<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />
  23. 23. Want to know more?<br />Join Front-End Loader weekly email list for project management and conceptual design tips<br />www.ConcepSysSolutions.com<br />Send email to aasiddiqui@concepsyssolutions.com<br />Sign-up to be notified for short and practical seminars and webinars <br />Send email to get free copy of upcoming e-Book on process industry project conceptual design<br />www.ConcepSysSolutions.com - Adnan Siddiqui<br />

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