Project Management

E&C Projects Phases

Prof. Mauro Mancini
e-mail: Mauro.Mancini@polimi.it ph.: +39-02-23994057 POLITECNICO DI MILANO Department of Management, Economics and Industrial Engineering

Plants Projects Phases

PLANNING/CONTROL engineering OPERATING PHASES procurement

construction/assembly

start-up/testing

Plants Projects Phases

PHASE Base Engineering Detailed Engineering Procurement Construction/Assembly Start-up/testing

RATIONALE Systems (functional units of the plant) Specialist disciplines Product classes Works processes/physical areas Systems

Plants Projects Phases

Base Engineering
FUNCIONAL SPECIFICATIONS

Detailed Engineering

CONSTRUCTIVE DESIGN

PURCHASE SPECIFICATIONS

SUPPLIER DATA

FUNCTIONAL PERFORMANCE TESTING CONSTRUCTIVE MODIFICATIONS

Procurement

MATERIALS

Construction /Assembly Start-up/ Testing

SYSTEMS

Engineering Phase

Elaborating engineering of a plant means to define coherently, with an increasing level of detail, technical specifications of all plant sub-systems (primary and auxiliary) and the relative integration ways

Engineering Phase

Base Engineering
SYSTEMIC APPROACH

Detailed Engineering
ENGINEERING DISCIPLINE APPROACH

Engineering Phase Base Engineering

From requirements (functional, performance, technological, constructive) indicated from the customer, until the complete definition of the plant (articulated in primary and auxiliary systems)
PRIMARY SYSTEM

SECONDARY SYSTEM: Instrumentatio n and control

SECONDARY SYSTEM: Electric Power

Engineering Phase Base Engineering

project requirements analysis technological process choice plant collocation plant configuration and its articulation in sub-systems automation level definition sub-systems characteristics definition layout definition health, security and environmental impact matters analysis operating management politics definition design criteria and constraints for detailed engineering definition

Engineering Phase
Block Diagram Process Flow Diagram Material Balance Energetic Balance Process & Instrument Diagram PID mechanized LAYOUT Overall Layout Detailed Layout Equipment List Data Sheet

Buried Network COMPONENTS Aerial Network

PROCESS
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Engineering Phase Detailed Engineering

Multidisciplinary activity through which technical specification of plant components and relative ways of installations are defined, on the basis of prefixed criteria, standards, rules, to supply necessary materials (material take-off) and to define ways of construction/assembly (sketches)

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Engineering Phase Detailed Engineering

Front End Engineering Engineering for Requisitioning and Procurement Engineering for Construction/Assembly Engineering during Construction

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Engineering Phase Detailed Engineering

Front End Engineering task is to define design choice fundamental for each specialist discipline, coherently with base engineering, to start supply campaign through items data sheet

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Engineering Phase Detailed Engineering

Engineering for Requisitioning and Procurement develops through the following: formulation of technical specifications for Request for Bid/Order; formulation of technical opinions on offers coming from suppliers; control and approval of technical documentation coming from selected supplier

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Engineering Phase
Technical documents
to specify technical characteristics of a plant/component to specify ways of construction, assembly, testing, exercise, maintenance to show the rightness of the project for rules absolving, authorizations, etc.

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Engineering Phase
Technical documents Life-Cycle
1. 2. 3. 4. planning elaboration filing transmission (if the document is used during the project in progress) 5. research and rendering (if the document is used in other projects)

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Engineering Phase

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Procurement Phase Site Logistics Product Support Logistics Materials Logistics

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Procurement Phase

Materials logistics can be divided in: Procurement order for supplier to guarantee the

Materials Management

presence of materials on site

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Procurement Phase Procurement

Supplied materials:
construction materials; plant components; consumption materials; operating means and advices.

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Procurement Phase Procurement

Vendor List Subcontractor List

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Procurement Phase Procurement Phases

1. 2. 3. 4. 5. 6. 7. Emission of Purchase Specification (from Engineering and Procurement); Emission of Inquiry for Bid (from Procurement and supplier inserted in vendor list); Technical tabulation of received proposals (from Engineering); Economic tabulation of received proposals (from Procurement); Emission of Inquiry for Purchase (from Engineering); Order emission (from Procurement); Final approval of supplier technical documentation (from Engineering).

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Procurement Phase Materials Management

Expediting Inspecting and testing Transports Reception/storing/handling of materials in site

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Procurement Phase Expediting

This phase guarantees the control of milestones corresponding to the right progress of the project Aims to obtain from the supplier information about:
furniture progress technical documentation development completion of foreseen testing
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Procurement Phase Expediting Activities

reunions among order manager, supplier and corporate functions interested detailed exam of the order, identifying uncertainty areas that could determine delivery delay control milestones definition and interventions frequency between them actions of reminder (visits, phone calls, meetings) expediting report, sent to corporate functions

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Procurement Phase Expediting Activities

Materials Statur Report material description number of purchase specification number and data of Inquiry of Purchase supplier number of order planned, foreseen and actual date of completion planned, foreseen and actual date of testing way of testing

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Procurement Phase Expediting Activities

Materials Statur Report planned, foreseen and actual date of free factory rendering way of shipment and carrier planned, foreseen and actual date of shipment planned, foreseen and actual date of delivery to the site corresponding activity of construction/assembly planned and foreseen date of activities execution date for which materials availability on site is required
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Procurement Phase Transports

Transport Plan ways of transport paths contract typology (for example door to door) carrier charges packaging delivery dates
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Procurement Phase Transports

Delivery documents are very important from a contractual point of view because they activate payment share from the customer

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Procurement Phase Inspecting and Testing Activities

participation to technical qualification of suppliers verification of suppliers quality warranty system and quality control technical supervision through inspections aimed to verify conformance of materials, processes, construction methodologies, and order specifications.

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Procurement Phase Inspecting and Testing Activities The level of supervision depends on supplied components characteristics and on quality level of the plant that have to be realized

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Procurement Phase Inspecting and Testing Activities

1) PRODUCT CATEGORIES
1 realized on demand on suppliers engineering 2 realized on demand on E&C societys engineering 3 purchased from catalogue

2) QUALITY CATEGORIES OF PLANTS/SYSTEMS

1 particularly high 2 high 3 normal
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Procurement Phase Inspecting and Testing Activities

Supervision Levels: inspection during furniture and presence during testing (intermediate and final) at suppliers only presence during testing (intermediate and final) at suppliers acceptance of materials on the basis of documents (without presence during testing)

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Construction/Assembly Phase Collocated at the end of detailed engineering (that provides technical documents) and procurement (that guarantees availability of materials to install), and precedes start-up and testing phases, where technical performance of the plant are verified

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Construction/Assembly Phase Aspects to consider :

changes in scope of work materials amount revision site logistics and transport and communication infrastructure activities programming and temporal profile of resources utilization availability of technical documents and materials on site contractual constraints plan of security on site problems from operating in strangers countries
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Construction/Assembly Phase
Specialist work processes constructive sequence Constructive area/draft/cube Crossing assembly processes and constructive areas a work package of construction/assembly phase is obtained Subcontracts

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Construction/Assembly Phase
Constructive area approach

Functionally complete system approach

Materials may be installed: per area and per system (e.g. piping) per area (e.g. conduits) per system (e.g. cables)

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