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Hazard and operability study(HAZOP)

A hazard and operability study (HAZOP) is a structured and systematic examination of a planned or
existing process or operation in order to identify and evaluate problems that may represent risks to
personnel or equipment, or prevent efficient operation; it is carried out by a suitably experienced
multi-disciplinary team (HAZOP team) during a set of meetings. The HAZOP technique is qualitative,
and aims to stimulate the imagination of participants to identify potential hazards and operability
problems; structure and completeness are given by using guideword prompts. The relevant
international standard [1] calls for team members to display 'intuition and good judgement' and for the
meetings to be held in 'a climate of positive thinking and frank discussion'. The HAZOP technique
was initially developed to analyze chemical process systems and mining operation process but has
later been extended to other types of systems and also to complex operations such as nuclear
power plant operation and to use software to record the deviation and consequence.

The method applies to processes (existing or planned) for which design information is available.

For continuous processes, this commonly includes a piping and instrumentation

diagram and process flow diagram which is examined in sections, chosen so that for each a
meaningful design intent (the desired, or specified range of behaviour for that item, not just its design
duty point ) can be specified. For example, in a chemical plant, a pipe may be intended to transport
2.3 kg/s of 96% sulfuric acid at 20 C and a pressure of 2 bar from a pump to a heat exchanger but a
prudent designer will have allowed for foreseeable variations hotter/stronger acid, pump no-flow
pressure on the line - before the design reaches detailed HAZOP and (where possible) that wider
design envelope should be explicitly identified and taken as the design intent basis for HAZOP
study .[b] The intended duty of the heat exchanger may be to heat 2.3 kg/s of 96% sulfuric acid from
20 C to 80 C but its full design intent will also include glimpse of the obvious functions; e.g.
maintaining containment of hot acid (and of the heating fluid,and preventing leakage of one into the
other). The size of sections should be appropriate to the complexity of the system and the magnitude
of the hazards it might pose. The HAZOP team then determines what are the possible
significant Deviations from each intent, feasible Causes and likely Consequences. It can then be
decided (at the HAZOP, or by subsequent analysis) whether existing, designed safeguards are
sufficient, or whether additional actions are necessary to reduce risk to an acceptable level. For
batch and other sequential operations a logic flow diagram should be available for HAZOP study as
well: equipment may have different design intents at different points in the operation (all should be
considered) and hazards may arise from performing operations out of sequence. When HAZOP

meetings were recorded by hand they were generally scheduled for three to four hours per day.[c] For
a medium-sized chemical plant where the total number of items to be considered is 1200 (items of
equipment and pipes or other transfers between them) about 40 such meetings would be needed.

Various software programs are now available to assist in meetings.

Guide words and parameters[edit]

In order to identify deviations, the team applies (systematically, in order [d]) a set of Guide Words to
each section of the process. To prompt discussion, or to ensure completeness, it may also be helpful
to explicitly consider appropriate parameters which apply to the design intent. These are general
words such as Flow, Temperature, Pressure, Composition. The current standard [1] notes that Guide
words should be chosen which are appropriate to the study and neither too specific (limiting ideas
and discussion) nor too general (allowing loss of focus). A fairly standard set of Guide Words
(given as an example in Table 3 of [1]) is as follows:

Guide Word



Complete negation of the design intent


Quantitative increase


Quantitative decrease


Qualitative modification/increase


Qualitative modification/decrease


Logical opposite of the design intent


Complete substitution


Relative to the clock time


Relative to the clock time


Relating to order or sequence


Relating to order or sequence

(The last four guide words are applied to batch or sequential operations.) Where a guide word is
meaningfully applicable to a parameter e.g. NO FLOW, MORE TEMPERATURE, their combination
should be recorded as a credible potential deviation. The distinction between some guide words may
not always be remembered by the team (LESS COMPOSITION should suggest less than 96%
sulfuric acid, AS WELL AS COMPOSITION should suggest a contaminant whereas OTHER THAN
COMPOSITION should suggest something else such as oil) or be well observed by the plant (if a
60% sulphuric/ 15% nitric acid mixture could be fed instead, the possibility could be flagged up
HAZOP-type studies may also be carried out by considering applicable guide words and identifying
elements to which they are applicable[1] or by considering the parameters associated with plant
elements and systematically applying guide words to them; although this last approach is not
mentioned in the relevant standard, its examples of output include a study (B3) recorded in this way.

The following table gives an overview of commonly used guide word - parameter pairs and

common interpretations of them.

Parameter / Guide Word




high flow



low flow



no flow




As well as













high level

low level

too long /

too short /

too late

too soon

fast mixing

slow mixing


reaction /


Start-up / Shut-down

too fast

too slow

Draining / Venting

too long

too short






Utility failure (instrument air, power)

no level

different level




no mixing

no reaction






DCS failure [e]





too low

too high


Once the causes and effects of any potential hazards have been established, the system being
studied can then be modified to improve its safety. The modified design should then be subject to
another HAZOP, to ensure that no new problems have been added.


A HAZOP study is a team effort. The team should be as small as possible consistent with their
having relevant skills and experience [g] A minimum team size of 4[1]-5 [3] is recommended. In a large
process there will be many HAZOP meetings and the team may change as different specialists and
possibly different members of the design team are brought in, but the Study Leader and Recorder
will usually be fixed. As many as 20 individuals may be involved[4] but is recommended that no more
than 7[1]-8[3] are involved at any one time (a larger team will make slower progress): each team
member should have a definite role as follows



(with alternative names from other sources):



someone experienced in HAZOP but not directly in

Study leader


method is followed carefully. Responsible for ensur

conclusion and is adequately recorded, problems a

passed on


Secretary or scribe


(or representative of the team

to record discussions (accurately but comprehensi

becomes impossible,[h] to document problems and

To explain any design details or provide further info

which has designed the



(or representative of those

who will use it [i])

according to specialism; e.g.


Chemist ; Human Factors



(if appropriate)

To consider it in use and question its operability, an

someone with relevant technical knowledge, e.g. k

conditions; training in human reliability analysis, an

someone concerned with maintenance of the plant

In earlier publications it was suggested that the Study Leader could also be the Recorder [4] but
separate roles are now generally recommended. Software is now available from several suppliers to
aid the Study Leader and the Recorder.

Upstream (petroleum industry)

From Wikipedia, the free encyclopedia

For other uses, see Upstream (disambiguation).

The oil and gas industry is usually divided into three major
sectors: upstream, midstream and downstream. The upstream oil sector is also commonly known
as the exploration and production (E&P) sector.[1][2]
The upstream sector includes the searching for potential underground or underwater crude
oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the
wells that recover and bring the crude oil and/or raw natural gas to the surface. [3] There has been a
significant shift toward including unconventional gas as a part of the upstream sector, and
corresponding developments in liquefied natural gas (LNG) processing and transport.
Upstream Industry has traditionally experienced the highest quantum of Mergers, Acquisitions and
Divestitures. M&A activity for upstream oil and gas deals in 2012 totaled $254 billion in 679 deals. [4] A

large chunk of this M&A, 33% in 2012, was driven by the Unconventional/shale boom especially in
the US followed by the Former Soviet Union and Canada.
The aggregate value of Upstream E&P assets available for sale (Deals in Play) reached a recordhigh of $135 billion in Q3-2013.[5] The value of Deals in Play doubled from $46 billion in 2009 to $90
billion in 2010. With ongoing M&A activity the level remained almost the same reaching $85 billion in
Dec-2012. However, the first half of 2013 saw approximately $48 billion of net new assets coming on
the market. Remarkably, the total value of Deals in Play in Q3-2013 nearly tripled over 2009 at $46
billion, in less than four years.

From Wikipedia, the free encyclopedia
(Redirected from Midstream (petroleum industry))

For other uses, see Midstream (disambiguation).

The petroleum industry is usually divided into three major
components: upstream, midstream and downstream. The midstream sector involves the
transportation (by pipeline, rail, barge, oil tanker or truck), storage, and wholesale marketing of crude
or refined petroleum products. Pipelines and other transport systems can be used to move crude oil
from production sites to refineries and deliver the various refined products to downstream
distributors.[1][2][3] Natural gas pipeline networks aggregate gas from natural gas purification plants and
deliver it to downstream customers, such as local utilities.
The midstream operations are often taken to include some elements of the upstream and
downstream sectors. For example, the midstream sector may include natural gas processing plants
that purify the raw natural gas as well as removing and producing elemental sulfur and natural gas
liquids (NGL) as finished end-products.

Service providers involved in the midstream sector[edit]

Barge companies

Railroad companies

Trucking and hauling companies

Pipeline transport companies

Logistics and technology companies

Transloading companies

Terminal developers and operators

Downstream (petroleum industry)

From Wikipedia, the free encyclopedia

For other uses, see Downstream (disambiguation).

The oil and gas industry is usually divided into three major
sectors: upstream, midstream and downstream. The downstream sector commonly refers to
the refining of petroleum crude oil and the processing and purifying of raw natural gas,[1][2] as well as
the marketing and distribution of products derived from crude oil and natural gas. The downstream
sector touches consumers through products such as gasoline or petrol, kerosene, jet fuel, diesel
oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liquefied petroleum gas (LPG)
as well as hundreds of petrochemicals.
Midstream operations are often included in the downstream category and considered to be a part of
the downstream sector.

Byproduct sulfur[edit]
Crude oil is a mixture of many varieties of hydrocarbons and most usually have many sulphurcontaining compounds. The oil refining process commonly includeshydrodesulphurization which
converts most of that sulphur into gaseous hydrogen sulphide. Raw natural gas also may contain
gaseous hydrogen sulphide and sulphur-containingmercaptans, which are removed in natural gas
processing plants before the gas is distributed to consumers.
The hydrogen sulphide removed in the refining and processing of crude oil and natural gas is
subsequently converted into byproduct elemental sulphur. In fact, the vast majority of the 64,000,000
metric tons of sulfur produced worldwide in 2005 was byproduct sulphur from refineries and natural
gas processing plants.[3][4]

Engineering, procurement and construction


Engineering Functions



Planning & Programming

Estimating Request for Quote



Procurement Functions






Construction Functions

Construction Schedule

On-site Material Handling

Construction Activities

On-site Client Communications

Valuation & Cash flow

testing & checking


Front-end loading (FEL), also referred to as pre-project planning (PPP), front-end engineering
design (FEED), feasibility analysis, conceptual planning,programming/schematic
design and early project planning, is the process for conceptual development of projects in
processing industries such as upstream, petrochemical,refining and pharmaceutical. This involves
developing sufficient strategic information with which owners can address risk and make decisions to
commit resources in order to maximize the potential for success.[1]
Front-end loading includes robust planning and design early in a project's lifecycle (i.e., the front
end of a project), at a time when the ability to influence changes in design is relatively high and the
cost to make those changes is relatively low. It typically applies to industries with highly capital
intensive, long lifecycle projects (i.e., hundreds of millions or billions of dollars over several years
before any revenue is produced). Though it often adds a small amount of time and cost to the early
portion of a project, these costs are minor compared to the alternative of the costs and effort
required to make changes at a later stage in the project.
It also typically uses a stage-gate process, whereby a project must pass through formal gates at well
defined milestones within the project's lifecycle before receiving funding to proceed to the next stage
of work. The quality of front-end planning can be improved through the use of PDRI (Project
Definition Rating Index) as a part of the stage-gate process.


FEL is usually followed by detailed design or detailed engineering.

FEL Stages[edit]
It is common industry practice to divide front-end-loading activities into three stages: FEL-1, FEL-2,
and FEL-3. For each stage, typical deliverables are listed given below :


Material balance

Energy balance


Preliminary equipment



Purchaseready major

Preliminary layout

Preliminary schedule


Project charter


Preliminary estimate


execution plan

3-D model

equipment list

Line list

From Wikipedia, the free encyclopedia

For procurement in prostitution, see Procuring (prostitution).

This article needs additional citations for verification. Please
help improve this article by adding citations to reliable sources. Unsourced
material may be challenged and removed. (October 2010)

Procurement is the acquisition of goods, services or works from an external source. It is favourable
that the goods, services or works are appropriate and that they are procured at the best
possible cost to meet the needs of the acquirer in terms of quality and quantity, time, and location.
Corporations and public bodies often define processes intended to promote fair and open
competition for their business while minimizing exposure to fraud and collusion.

1 Overview

2 Topics

2.1 Procurement vs. acquisition

2.2 Acquisition process

2.3 Procurement software

2.4 Procurement life cycle

2.5 Procurement performance

3 Public procurement
3.1 Green public procurement

4 Alternative procedures

5 Fraud

6 See also

7 Notes and references

8 External links

Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and
price fluctuations. Procurement generally involves making buying decisions under conditions
of scarcity. If good data is available, it is good practice to make use of economic analysis methods
such as cost-benefit analysis or cost-utility analysis.
An important distinction should be made between analyses without risk and those with risk. Where
risk is involved, either in the costs or the benefits, the concept of expected value may be employed.

Direct procurement and indirect procurement







n goods

repair, and
operating sup








Relatively high








spare parts





Crude oil in

Based on the consumption purposes of the acquired goods and services, procurement activities are
often split into two distinct categories. The first category being direct, production-related procurement
and the second being indirect, non-production-related procurement.
Direct procurement occurs in manufacturing settings only. It encompasses all items that are part of
finished products, such as raw material, components and parts. Direct procurement, which is the
focus in supply chain management, directly affects the production process of manufacturing firms. In
contrast, Indirect procurement activities concern operating resources that a company purchases to

enable its operations. It comprises a wide variety of goods and services, from standardized low
value items like office supplies and machine lubricants to complex and costly products and services;
like heavy equipment and consulting services.

Procurement vs. acquisition[edit]
The US Defense Acquisition University (DAU) defines procurement as the act of buying goods and
services for the government.[4]
DAU defines acquisition as the conceptualization, initiation, design, development, test, contracting,
production, deployment, Logistics Support (LS), modification, and disposal of weapons and other
systems, supplies, or services (including construction) to satisfy Department of Defense needs,
intended for use in or in support of military missions.[4]
Acquisition is therefore a much wider concept than procurement, covering the whole life cycle of
acquired systems. Multiple acquisition models exist, one of which is provided in the following section.

Acquisition process[edit]
The revised acquisition process for major systems in industry and defense is shown in the next
figure. The process is defined by a series of phases during which technology is defined and matured
into viable concepts, which are subsequently developed and readied for production, after which the
systems produced are supported in the field.[5]

Model of the Acquisition Process.[5]

The process allows for a given system to enter the process at any of the development phases. For
example, a system using unproven technology would enter at the beginning stages of the process

and would proceed through a lengthy period of technology maturation, while a system based on
mature and proven technologies might enter directly into engineering development or, conceivably,
even production. The process itself includes four phases of development: [5]

Concept and Technology Development: is intended to explore alternative concepts based on

assessments of operational needs, technology readiness, risk, and affordability.

Concept and Technology Development phase begins with concept exploration. During this
stage, concept studies are undertaken to define alternative concepts and to provide information
about capability and risk that would permit an objective comparison of competing concepts.

System Development and Demonstration phase. This phase could be entered directly as a
result of a technological opportunity and urgent user need, as well as having come through
concept and technology development.

The last, and longest phase is the Sustainable and Disposal phase of the program. During
this phase all necessary activities are accomplished to maintain and sustain the system in the
field in the most cost-effective manner possible.

Procurement software[edit]
Procurement software (often labeled as e-procurement software) manages the purchasing
processes electronically and/or via cloud computing. As Procurement Network's research provides,
there are more than one hundred e-Procurement solutions available today. As an important
element of supply chain management systems, these systems help organizations efficiently manage
their purchasing cycle times and maximize profit on every purchase order. Many organisations
produce their own ways of working but some software does exist: SMART by GEP, a cloud-based,
end-to-end procurement platform by GEP, Track8 by Future Purchasing,[7] Puridiom - procure-to-pay
software, Fishbowl Inventory - Inventory management, Tradogram - Private Purchasing Portal by

Procurement life cycle[edit]

Procurement life cycle in modern businesses usually consists of seven steps:

Identification of Need: This is an internal step for a company that involves understanding of
the company needs by establishing a short term strategy ( three to five years) followed by
defining the technical direction and requirements.

Supplier Identification: Once the company has answered important questions like: Makebuy, multiple vs. single suppliers, then it needs to identify who can provide the required
product/service (P/S). There are many sources to search for supplier and trade shows.

Supplier Communication: When one or more suitable suppliers have been

identified, requests for quotation, requests for proposals, requests for information or requests for
tender may be advertised, or direct contact may be made with the suppliers. References for
product/service quality are consulted, and any requirements for follow-up services including
installation, maintenance, and warranty are investigated. Samples of the P/S being considered
may be examined, or trials undertaken.

Negotiation: Negotiations are undertaken, and price, availability, and customization

possibilities are established. Delivery schedules are negotiated, and a contract to acquired

Supplier Liaison: During this phase, the company evaluates the performance of the P/S
and any accompanying service support, as they are consumed.Supplier scorecard is a popular
tool for this purpose.When the P/S has been consumed or disposed of, the contract expires, or
the product or service is to be re-ordered, company experience with the P/S is reviewed. If the
P/S is to be re-ordered, the company determines whether to consider other suppliers or to
continue with the same supplier.

Logistics Management: Supplier preparation, expediting, shipment, delivery, and payment

for the P/S are completed, based on contract terms. Installation and training may also be

Additional Step - Tender Notification: Some institutions choose to use a notification

service in order to raise the competition for the chosen opportunity. These systems can either be
direct from their e-tendering software, or as a re-packaged notification from an external
notification company.

Procurement performance[edit]
In July 2011, Ardent Partners, published a research report that presented a comprehensive, industrywide view into what is happening in the world of procurement today by drawing on the experience,
performance, and perspective of nearly 250 Chief Procurement Officers and other procurement
executives. The report includes the main procurement performance and operational benchmarks
that procurement leaders use to gauge the success of their organizations. This report found that the
average procurement department manages 60.6% of total enterprise spend. This measure
commonly called "spend under management" refers to the percentage of total enterprise spend
(which includes all direct, indirect, and services spend) that a procurement organization manages or
influences. The average procurement department also achieved an annual savings of 6.7% in the
last reporting cycle, sourced 52.6% of its addressable spend, and has a contract compliance rate of

Public procurement[edit]
Main article: Government procurement
Public procurement generally is an important sector of the economy. In Europe, public procurement
accounts for 16.3% of the Community GDP.[9]

Green public procurement[edit]

In Green public procurement (GPP), contracting authorities and entities take environmental issues
into account when tendering for goods or services. The goal is to reduce the impact of the
procurement on human health and the environment. [10]

In the European Union, the Commission has adopted its Communication on public procurement for a
better environment, where proposes a political target of 50% Green public procurement to be
reached by the Member States by the year 2010.[11]

Alternative procedures[edit]
There are several alternatives to tendering which are available in formal procurement. One system
which has gained increasing momentum in the construction industry and among developing
economies is the Selection in planning process which enables project developers and equipment
purchasers to make significant changes to their requirements with relative ease. The SIP process
also enables vendors and contractors to respond with greater accuracy and competitiveness as a
result of the generally longer lead times they are afforded.

Procurement fraud can be defined as dishonestly obtaining an advantage, avoiding an obligation or
causing a loss to public property or various means during procurement process by public servants,
contractors or any other person involved in the procurement. [12] An example is the kickback, whereby
a dishonest agent of the supplier pays a dishonest agent of the purchaser to select the supplier's bid,
often at an inflated price. Other frauds in procurement include:[13]

Collusion among bidders to reduce competition.

Providing bidders with advance "inside" information.

Submission of false or inflated invoices for services and products that are not delivered or
work that is never done. "Shadow vendors", shell companies that are set up and used for billing,
may be used in such schemes.

Intentional substitution of substandard materials without the customer's agreement.

Use of "sole source" contracts without proper justification.

Use of prequalification standards in specifications to unnecessarily exclude otherwise

qualified contractors.

Dividing requirements to qualify for small-purchase procedures to avoid scrutiny for contract
review procedures of larger purchases.

See also[edit]

Agreement on Government Procurement


Buyer leverage

Call for bids

Contract management



Global sourcing

Group purchasing organization

Indirect procurement

National Association of State Procurement Officials


From Wikipedia, the free encyclopedia

For other uses, see Turnkey (disambiguation).

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A turnkey or a turnkey project (also spelled turn-key) is a type of project that is constructed so
that it could be sold to any buyer as a completed product. This is contrasted withbuild to order,
where the constructor builds an item to the buyer's exact specifications, or when an incomplete
product is sold with the assumption that the buyer would complete it.
A turnkey project or contract as described by Duncan Wallace (1984) is:[citation needed]

. a contract where the essential design emanates from, or is supplied by, the Contractor and not the
owner, so that the legal responsibility for the design, suitability and performance of the work after
completion will be made to rest with the contractor . 'Turnkey' is treated as merely signifying the
design responsibility as the contractor's.

A turnkey computer system is a complete computer including hardware, operating system and
application(s) designed and sold to satisfy specific business requirements.

1 Common usage

2 Specific usage

3 See also

4 References

Common usage[edit]
Turnkey refers to something that is ready for immediate use, generally used in the sale or supply of
goods or services. The word is a reference to the fact that the customer, upon receiving the product,
just needs to turn the ignition key to make it operational, or that the key just needs to be turned over
to the customer.[1][2] Turnkey is often used to describe a home built on the developer's land with the
developer's financing ready for the customer to move in. If a contractor builds a "turnkey home" they
frame the structure and finish the interior. Everything is completed down to the cabinets and carpet.
"Turnkey" is commonly used in the construction industry, for instance, in which it refers to the
bundling of materials and labour by sub-contractors.[2] 'Turnkey' is also commonly used
in motorsports to describe a car being sold with drivetrain (engine, transmission, etc.) to contrast
with a vehicle sold without one so that other components may be re-used.
Similarly, this term may be used to advertise the sale of an established business, including all the
equipment necessary to run it, or by a business-to-business supplier providing complete packages
for business start-up.[1] An example would be the creation of a "turnkey hospital" which would be
building a complete medical centre with installed medical equipment.

Specific usage[edit]
The term turnkey is also often used in the technology industry, most commonly to describe pre-built
computer "packages" in which everything needed to perform a certain type of task (e.g. audio
editing) is put together by the supplier and sold as a bundle. [citation needed] This often includes a computer
with pre-installed software, various types of hardware, and accessories. Such packages are
commonly called appliances. A website with a ready-made solutions and some configurations is
called a turnkey website.

Turnkey products are synonymous to "off-the-shelf" solutions and not customized.

In real estate, turnkey is defined as delivering a location that is ready for occupation. [citation needed] The
turnkey process includes all of the steps involved to open a location including the site selection,
negotiations, space planning, construction coordination and complete installation. Turnkey real
estate also refers to a type of investment. This process includes the purchase, construction or rehab
(of an existing site), the leasing out to tenants, and then the sale of the property to a buyer. The
buyer is purchasing an investment property which is producing a stream of income.
In drilling, the term indicates an arrangement where a contractor must fully complete a well up to
some milestone to receive any payment (in exchange for greater compensation upon completion). [3]

See also[edit]

Commercial off-the-shelf

Engineering, procurement and construction

Value-added reseller

Call for bids

From Wikipedia, the free encyclopedia

This article needs additional citations for verification. Please

help improve this article by adding citations to reliable sources. Unsourced
material may be challenged and removed. (May 2009)

A call for bids,[1] call for tenders,[2] or invitation to tender[3] (ITT) (often called tender for short) is a
special procedure for generating competing offers from different bidders looking to obtain an award
of business activity in works, supply, or service contracts. They are usually preceded by a prequalification questionnaire (PQQ).

1 Types of calls for tenders

2 Origin of the term

3 Double envelope system

4 Tender box

5 Security deposit

6 Locating tenders

7 Typical template contents (in project management)

8 See also

9 References

Types of calls for tenders[edit]

Open tenders, open calls for tenders, or advertised tenders are open to all vendors or contractors
who can guarantee performance.
Restricted tenders, restricted calls for tenders, or invited tenders are only open to selected
prequalified vendors or contractors. This may be a two-stage process, the first stage of which
produces a short list of suitable vendors.
The reasons for restricted tenders differ in scope and purpose. They are called because:

There is essentially only one suitable supplier of the services or product

There are confidentiality issues such as military contracts

There are reasons for expedience such as emergency situations

There is a need to weed out tenderers who do not have the financial or technical capabilities
to fulfill the requirements

Origin of the term[edit]

Dictionaries explain the etymology as coming from Old French tendre, which means "to offer".
The following false etymology[citation needed] is sometimes heard:

When merchant ships arrived at a port of call, they would post a notice describing the goods
they wished to buy or sell. This notice was delivered ahead of the ship by atendera small boat
and hence the process became known as tendering.

Double envelope system[edit]

In an open bid or tender system, a double envelope system may be used. The double envelope
system separates the technical proposal (based on and intended to meet thestatement of work) from
the financing or cost proposal in the form of two separate and sealed envelopes.

During the tender evaluation, the technical proposal would be opened and evaluated first followed by
the financing proposal.
The objective of this system is to ensure a fair evaluation of the proposal. The technical proposal
would be evaluated purely on its technical merits and its ability to meet the requirements set forth in
the Invitation without being unduly skewed by the financial proposal.

Tender box[edit]
A tender box is a mailbox that is used to receive the physical tender or bid documents. When a
tender or bid is being called, a tender or bid number is usually issued as a reference number for the
tender box. The tender box would be open for interested parties to submit their proposals for the
duration of the bid or tender.
Once the duration is over, the tender box is closed and sealed and can only be opened by either the
tender or bid evaluation committee or a member of the procurement department with one witness.

Security deposit[edit]
Registered contractors are usually required to furnish a bond for a stipulated sum as security or
earnest money deposit to be adjusted against work done, normally in the form of Bank Guarantee
or Surety.

Locating tenders[edit]
Public sector organizations in many countries are legally obliged to release tenders for works and
services. In the majority of cases, these are listed on their websites and traditional print media.
Electronic procurement and tendering systems or e-procurement are also increasingly prevalent.
A number of companies provide subscription alert services which send notifications of relevant
tender documents to the subscriber.
An array of private organisations also assist businesses in finding out about these tenders. Cost may
vary from a few pounds a week to a few hundred.
Because of the specialised language and sometimes difficult-to-grasp procedures, some
organizations[who?] also offer companies tender writing training, or do the writing for them. [citation needed]

Typical template contents (in project management)[edit]

A typical invitation to tender template in any project has the following sections: [4]


Project background

Legal issues

Maintaining issues

Supplier response required

Timetable for choosing a supplier


Engineering design process

From Wikipedia, the free encyclopedia

This article is written like a personal reflection or opinion essay that

states the Wikipedia editor's particular feelingsabout a topic, rather
than the opinions of experts. Please help improve it by rewriting it in
an encyclopedic style. (July 2014)
This article needs additional citations for verification. Please
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The engineering design process is a methodical series of steps that engineers use in creating
functional products and processes. The process is highly iterative - parts of the process often need
to be repeated many times before production phase can be entered - though the part(s) that get
iterated and the number of such cycles in any given project can be highly variable.
It is a decision making process (often iterative) in which the basic sciences, mathematics, and
engineering sciences are applied to convert resources optimally to meet a stated objective. Among
the fundamental elements of the design process are the establishment of objectives and criteria,
synthesis, analysis, construction, testing and evaluation
One framing of the engineering design process delineates the following stages: research,
conceptualization, feasibility assessment, establishing design requirements, preliminary design,
detailed design, production planning and tool design, and production. [2] The steps tend to get
articulated, subdivided, and/or illustrated in a variety of different ways, but they generally reflect
certain core principles regarding the underlying concepts and their respective sequence and


1 Common Stages of the Engineering Design Process


1.1 Research

1.2 Feasibility

1.3 Conceptualization

1.4 Design requirements

1.5 Preliminary design

1.6 Detailed design

1.7 Production planning and tool design

1.8 Production

2 Comparison with the Scientific Method

3 See also

4 References

Common Stages of the Engineering Design Process[edit]

A significant amount of time is spent on locating information and research.[3] Consideration should be
given to the existing applicable literature, problems and successes associated with existing
solutions, costs, and marketplace needs.[3]
The source of information should be relevant, including existing solutions. Reverse engineering can
be an effective technique if other solutions are available on the market. [3]Other sources of information
include the Internet, local libraries, available government documents, personal organizations, trade
journals, vendor catalogs and individual expertsavailable.[3]

At first, a feasibility study is carried out after which schedules, resource plans and, estimates for the
next phase are developed. The feasibility study is an evaluation and analysis of the potential of a
proposed project to support the process of decision making. It outlines and analyses alternatives or
methods of achieving the desired outcome. The feasibility study helps to narrow the scope of the

project to identify the best scenario. A feasibility report is generated following which Post Feasibility
Review is performed.
The purpose of a feasibility assessment is to determine whether the engineer's project can proceed
into the design phase. This is based on two criteria: the project needs to be based on an achievable
idea, and it needs to be within cost constraints. It is important to have engineers with experience and
good judgment to be involved in this portion of the feasibility study.[2]

Following Feasibility, a concept study (conceptualization, conceptual engineering) is performed. A
concept study is the phase of project planning that includes producing ideas and taking into account
the pros and cons of implementing those ideas. This stage of a project is done to minimize the
likelihood of error, manage costs, assess risks, and evaluate the potential success of the intended
Once an engineering issue is defined, solutions must be identified. These solutions can be found by
using ideation, the mental process by which ideas are generated. The following are the most widely
used techniques:[2]

trigger word - a word or phrase associated with the issue at hand is stated, and subsequent
words and phrases are evoked.

morphological chart - independent design characteristics are listed in a chart, and different
engineering solutions are proposed for each solution. Normally, a preliminary sketch and short
report accompany the morphological chart.

synectics - the engineer imagines him or herself as the item and asks, "What would I do if I
were the system?" This unconventional method of thinking may find a solution to the problem at
hand. The vital aspects of the conceptualization step is synthesis. Synthesis is the process of
taking the element of the concept and arranging them in the proper way. Synthesis creative
process is present in every design.

brainstorming - this popular method involves thinking of different ideas, typically as part of a
small group, and adopting these ideas in some form as a solution to the problem and it can fix it
in dramatic speed, when fixing it will also improve what they are thinking of, that is why its so
popular because it is very useful for when people want to create products.

Design requirements[edit]
Establishing design requirements is one of the most important elements in the design process,[4] and
this task is normally performed at the same time as the feasibility analysis. The design requirements
control the design of the project throughout the engineering design process. Some design
requirements include hardware and software parameters,maintainability, availability, and testability.[2]

Preliminary design[edit]
The preliminary design, or high-level design (also called FEED), bridges the gap between the design
concept and the detailed design phase. In this task, the overall system configuration is defined,
and schematics, diagrams, and layouts of the project will provide early project configuration. During
detailed design and optimization, the parameters of the part being created will change, but the
preliminary design focuses on creating the general framework to build the project on. [2]

Detailed design[edit]
Following FEED is the Detailed Design (Detailed Engineering) phase which may consist
of procurement as well. This phase builds on the already developed FEED, aiming to further
elaborate each aspect of the project by complete description through solid modeling, drawings as
well as specifications.
Some of the said specifications include:[2]

Operating parameters

Operating and nonoperating environmental stimuli

Test requirements

External dimensions

Maintenance and testability provisions

Materials requirements

Reliability requirements

External surface treatment

Design life

Packaging requirements

External marking

Computer-aided design (CAD) programs have made the detailed design phase more efficient. This is
because a CAD program can provide optimization, where it can reduce volume without hindering the
part's quality. It can also calculate stress and displacement using the finite element method to
determine stresses throughout the part. It is the engineer's responsibility to determine whether these
stresses and displacements are allowable, so the part is safe. [5]

Production planning and tool design[edit]

The production planning and tool design consists in planning how to mass-produce the project and
which tools should be used in the manufacturing of the part. Tasks to complete in this step include
selecting the material, selection of the production processes, determination of the sequence of
operations, and selection of tools, such as jigs, fixtures, and tooling. This task also involves testing a
working prototype to ensure the created part meets qualification standards.[2]

With the completion of qualification testing and prototype testing, the engineering design process is
finalized. The part must now be manufactured, and the machines must be inspected regularly to
make sure that they do not break down and slow production. [2]

Comparison with the Scientific Method[edit]

The engineering design process bears some similarity to the scientific method. [6] Both processes
begin with existing knowledge, and gradually become more specific in the search for knowledge or a

Feasibility study
From Wikipedia, the free encyclopedia

For other uses, see Feasibility study (disambiguation).

It has been suggested that technical feasibility be merged into this article.
(Discuss) Proposed since November 2014.

Feasibility study: -an assessment of proposed project. assessment (evaluation and analysis)

1 Overview

2 Feasibility study topics echo


2.1 Common factors

2.2 Other feasibility factors

2.3 Market research study and analysis

3 See also

4 References

5 Further reading

6 External links

Feasibility studies, aim to objectively and rationally uncover the strengths and weaknesses of an
existing business or proposed venture, opportunities and threats present in theenvironment,
the resources required to carry through, and ultimately the prospects for success.[1][2] In its simplest
terms, the two criteria to judge feasibility are cost required andvalue to be attained.[3]
A well-designed feasibility study should provide a historical background of the business or project, a
description of the product or service, accounting statements, details of
theoperations and management, marketing research and policies, financial data, legal requirements
and tax obligations.[1] Generally, feasibility studies precede technical development
and project implementation.
A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an
important factor in the credibility of the study for potential investors and lending institutions. [citation needed] It
must therefore be conducted with an objective, unbiased approach to provide information upon
which decisions can be based.[citation needed]

Feasibility study topics echo[edit]

Common factors[edit]
The acronym TELOS refers to the five areas of feasibility - Technical, Economic, Legal, Operational,
and Scheduling.
Technology and system feasibility
The assessment is based on an outline design of system requirements, to determine whether the
company has the technical expertise to handle completion of the project. When writing a feasibility
report, the following should be taken to consideration:

A brief description of the business to assess more possible factors which could affect the

The part of the business being examined

The human and economic factor

The possible solutions to the problem

At this level, the concern is whether the proposal is both technically and legally feasible (assuming
moderate cost).
Legal Feasibility
Determines whether the proposed system conflicts with legal requirements, e.g. a data processing
system must comply with the local Data Protection Acts.
Operational Feasibility
Operational feasibility is a measure of how well a proposed system solves the problems, and takes
advantage of the opportunities identified during scope definition and how it satisfies the requirements
identified in the requirements analysis phase of system development. [4]
The operational feasibility assessment focuses on the degree to which the proposed development
projects fits in with the existing business environment and objectives with regard to development
schedule, delivery date, corporate culture, and existing business processes.
To ensure success, desired operational outcomes must be imparted during design and development.
These include such design-dependent parameters such as reliability, maintainability, supportability,
usability, producibility, disposability, sustainability, affordability and others. These parameters are
required to be considered at the early stages of design if desired operational behaviors are to be
realized. A system design and development requires appropriate and timely application of
engineering and management efforts to meet the previously mentioned parameters. A system may
serve its intended purpose most effectively when its technical and operating characteristics are
engineered into the design. Therefore operational feasibility is a critical aspect of systems
engineering that needs to be an integral part of the early design phases. [5]
Economic Feasibility
The purpose of the economic feasibility assessment is to determine the positive economic benefits
to the organization that the proposed system will provide. It includes quantification and identification
of all the benefits expected. This assessment typically involves a cost/ benefits analysis.
Technical Feasibility
The technical feasibility assessment is focused on gaining an understanding of the present technical
resources of the organization and their applicability to the expected needs of the proposed system. It
is an evaluation of the hardware and software and how it meets the need of the proposed system [6]
Schedule Feasibility
A project will fail if it takes too long to be completed before it is useful. Typically this means
estimating how long the system will take to develop, and if it can be completed in a given time period

using some methods like payback period. Schedule feasibility is a measure of how reasonable the
project timetable is. Given our technical expertise, are the project deadlines reasonable? Some
projects are initiated with specific deadlines. It is necessary to determine whether the deadlines are
mandatory or desirable.

Other feasibility factors[edit]

Market and real estate feasibility
Market feasibility studies typically involve testing geographic locations for a real estate development
project, and usually involve parcels of real estate land. Developers often conduct market studies to
determine the best location within a jurisdiction, and to test alternative land uses for given parcels.
Jurisdictions often require developers to complete feasibility studies before they will approve a
permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use
project. Market Feasibility takes into account the importance of the business in the selected area.
Resource feasibility
This involves questions such as how much time is available to build the new system, when it can be
built, whether it interferes with normal business operations, type and amount of resources required,
dependencies, and developmental procedures with company revenue prospectus.
Cultural feasibility
In this stage, the project's alternatives are evaluated for their impact on the local and general culture.
For example, environmental factors need to be considered and these factors are to be well known.
Further an enterprise's own culture can clash with the results of the project.
Financial feasibility study
In case of a new project, financial viability can be judged on the following parameters:

Total estimated cost of the project

Financing of the project in terms of its capital structure, debt equity ratio and promoter's
share of total cost

Existing investment by the promoter in any other business

Projected cash flow and profitability

The financial viability of a project should provide the following information: [citation needed]

Full details of the assets to be financed and how liquid those assets are.
Rate of conversion to cash-liquidity (i.e. how easily can the various assets be converted to

Project's funding potential and repayment terms.

Sensitivity in the repayments capability to the following factors:

Time delays.

Mild slowing of sales.

Acute reduction/slowing of sales.

Small increase in cost.

Large increase in cost.

Adverse economic conditions.

In 1983 the first generation of the Computer Model for Feasibility Analysis and Reporting (COMFAR),
a computation tool for financial analysis of investments, was released. Since then, this UNIDO
software has been developed further, to also support the economic appraisal of projects. The
Computer Model for Feasibility Analysis and Reporting (COMFAR III Expert) is intended as an aid in
the analysis of investment projects. The main module of the program accepts financial and economic
data, produces financial and economic statements and graphical displays and calculates measures
of performance. Supplementary modules assist in the analytical process. Cost-benefit and valueadded methods of economic analysis developed by UNIDO are included in the program and the
methods of major international development institutions are accommodated. The program is
applicable for the analysis of investment in new projects and expansion or rehabilitation of existing
enterprises as, e.g., in the case of reprivatisation projects. For joint ventures, the financial
perspective of each partner or class of shareholder can be developed. Analysis can be performed
under a variety of assumptions concerning inflation, currency revaluation and price escalations. [7]

Market research study and analysis[edit]

This is one of the most important sections of the feasibility study as it examines the marketability of
the product or services and convinces readers that there is a potential market for the product or
services.[citation needed] If a significant market for the product or services cannot be established, then there
is no project.
Typically, market studies will assess the potential sales of the product, absorption and market
capture rates and the project's timing.[citation needed]
The feasibility study outputs the feasibility study report, a report detailing the evaluation criteria, the
study findings, and the recommendations.[8]