Worley Parsons PCDP - Module 02 - EPC Schedule Development

PROJECT CONTROLS DEVELOPMENT PROGRAM

MODULE 2 - EPC SCHEDULE DEVELOPMENT

PCDP Module 2 - EPC Schedu Schedu le Developm ent Rev 0

SPECIAL ACKNOWLEDGMENTS: Dawindar Pannu, “If you can’t convince them, confuse them….”

This document has been prepared for the exclusive use of WorleyParsons. Copying this document document without the permission of WorleyParsons is not not permitted.

MODULE 2 - EPC SCHEDULE SCHEDULE DEVELOPMENT Rev

Description

Originator

Review

Ap pr ov ed

Date

0

Released for Global Implementati Implementation on

Humphrey Kerger / Dawindar Pannu

Project Controls R5 Management Team

Project Controls R5 Management Team

18 Mar 2011

)

PCDP Modul e 2 - EPC Schedu le Developm ent Rev 0

PROJECT CONTROLS DEVELOPMENT PROGRAM

This Training Module is part 2 of an 8 modular training program designed to provide the participants with an overall introduction to the skills & knowledge required by Project Controls when executing an EPCM / PMC project. The complete training program consists of the following modules: Module 1 - Introduction To Project Controls Module 2 - EPC Schedule Development (incl uding P6 user skills ) Module 3 - Services Management (including InControl V8.0 user skills) Module 4 - Commercial Performance Management Module 5 - Introduction to TIC Cost Estimation Module 6 - TIC Management (including Prediction Plus / InControl V10 user skills) Module 7 - Schedule Risk Analysis (including Pert Master user skills) Module 8 - Cost Risk Analysis (including @Risk user skills) The aim of this document is to provide a hands-on guideline to assist the project controller in developing an EPC Schedule.

Upon completion of Module 2, participants w ill be able to: •

Develop a EPC Work Breakdown Structure (WBS)

•

Develop an Level III EPC schedule based on “EPC-Driven” scheduling principles

•

Understand the EPC project delivery process

•

Understand the project schedule-drivers, interfaces and dependencies

•

Understand the rationale behind various Contract Strategies.

•

Utilize the basic functions of Primavera P6

Page 3

PCDP Module 2 - EPC Schedu le Developm ent Rev 0

EPC SCHEDULE DEVELOPMENT

Module Content:

1.0 Introduc tion

5

1.1 Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

1.2 Scope of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

2.0 Contr act Strategy

7

2.1 Main Execution Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

2.2 EPCM .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

2.3 Module Fabrication .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

2.4 Transport & Installation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

2.5 Brownfield Modifications / Tie-ins / HUC .. . . . . . . . . . . . . . . . . . . . . . . .

8

2.6 Accommodation Vessel .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

2.7 Contract Award Lead Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

3.0 Executi on

10

3.1 CROC Key Milestones. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

3.2 Shutdown Dates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

3.3 Engineering / Detail Design. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

3.4 Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

3.5 Purchase Order Award Lead Times. . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

3.6 Fabrication & Installation Durations . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

3.7 Fabrication & Installation Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

3.8 EPCM Milestones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

4.0 Modul e Exercis es

16

5.0 Schedule Basis Memorandum (SBM)

21

5.1 Project Description, Schedule Process & Set Up details. . . . . . . . . . . . .

23

5.2 Overview Key Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

5.3 Key Project Dates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24

5.4 Planning Basis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

5.5 Critical Path. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

5.6 Scheduling Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

5.7 Issues & Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

5.8 Risks & Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

5.9 Assumptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

5.10 Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

5.11 Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

5.12 Baseline Changes / Reconciliations . . . . . . . . . . . . . . . . . . . . . . . . . . .

28

5.13 Schedule Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28

Page 4


1.0 INTRODUCTION

1.1 BACKGROUND

throughput was 356 MMscfd.

Creer Oil Company (CROC) is the operator of the Tatanka Gas to Power development located in South East Asia. The development is based on the Apache gas fields. Gas is delivered from the Apache ‘A’ Platform via a 377 km marine pipeline to the Sioux Terminal for processing prior to onward transmission to the Cheyenne Power station. (see Figure 1.1).

In response to sustain higher demand, a compression module shall be designed to handle an increase in processing capacity from 356 MMscfd to 530 MMscfd.

Production commenced from the Apache Platform in December 2002. Original design

A provision was made in the original platform design for the addition of a compression module to boost gas pressure to the required pipeline pressure. It was envisaged that compression would not be required until 2012, when the reservoir pressure was predicted to fall below that re-

quired for design export gas flow rate. The start up date for the compression facilities is currently targeted for 26 Aug 2012. The FEED for the compression project commenced on 19 Sep 2009, and is scheduled to complete on 25 Dec 2010. The execution-phase is scheduled to commence on Jan 1, 2011

TATANKA GAS TO POWER DEVELOPMENT

Upstream - Apache ‘A’ Platform

Midstream - Sioux Terminal

“ Anywhere is walking-

Power - Cheyenn e Power Station

distance if you got the time “ ~/~ Steven Wright

Page 5


1.2

SCOPE OF WORK

WorleyParsons have been awarded the FEED (consisting of select and define stages) with the option to take responsibility for the EPCM (execute) work-phase for Apache Compression Module. The Apache Compression Project involves provision of: •

A compression module to enable the Apache platform to maintain delivery of contract gas volumes in light of declining reservoir pressure.

The schedule should cover the following: •

Key Milestones

•

EPC Management & Support Control Accounts

•

•

Key Equipment & Materials Items.

•

Contract Plan

•

Fabrication (High Level, Driving activities only)

• •

Condensate Export pumps (which will be located separately on the main platform)

The aim of this document is to provide a hands-on guideline to assist a planner in developing a baseline Level 3 EPC schedule for the Apache Compression Project during the FEED phase to support client sanctioning for the Execution Phase Control Budget.

Page 6

Detail Engineering Control Accounts

Installation & T ransportation (High Level, Key Activities only)

•

Hook-Up & Commissioning (High Level, Key Activities only)

•

Platform Shutdown windows

CROC expects the planner to deliver an Overall EPC schedule showing the critical path of the complete execution phase.

Schedule should provide an overview of how the project is going to be executed, the main schedule drivers (Critical Path) and their inter-relationships, and will be used as a framework for the more detailed level 4 & 5 schedules. These detailed schedules will be developed by the respective contractors after final contractaward.

Important Note : This Training module should be read in conjunction with: •

Module 1 Introduction to Project Controls, chapters 7.0 Schedule Development & 8.0 Schedule Control

•

P6 Training Manual, accessible via Project Controls & Estimating link on the NOW page, under Tools & Systems, Library.


2 . 0 C O N T R A C T S T R A T E GY

2.1 MAIN EXECUTION

•

Single EPCM Contractor (WorleyParsons)

•

Single Module Fabrication Contract

•

Single Transport & Installation Contract

•

Single Brown Field Modification / Tie-In / HUC Contractor

CONTRACTS

In an effort to meet aggressive target completion dates CROC have decided to execute the project using a combination of the following execution contracts:

Under the EPCM contract agreement, WorleyParsons provides services for Detail design, Engineering and Procurement as well as Construction & Commissioning Management & Support, and includes the following scope of work: •

Detail Design of Module

•

Detail Design of Brownfield and Tie-in works

•

Follow-on engineering, Construction support

•

“ N o v en t u r e succeeds without good p l a n n i n g .. . “ ~ / ~ Christopher Columbus

Procurement services for all equipment and material (issue RFQ’s, Technical & Commercial Bid Evaluations, Award Recommendations to CROC and prepare Pur-

Single Accommodation Vessel Contract

The contract strategy is based on all Procurement to be done by EPCM contractor on behalf of CROC and free-issued to the respective contractors.

chase Orders on behalf of CROC)

2.2 EPCM CONTRACT

WorleyParsons have been awarded the EPCM Contract and as such, responsible for delivering this project on spec, on time and within the client’s TIC budget.

•

•

Vendor inspection and expedition of materials and equipment (ROS-dates and VDR).

•

Provision of full EPC Management (fabrication, installation and commissioning management, contract admin.)

A preliminary set of EPCM CTR’s was developed by WorleyParsons early in the FEED-phase (See 3.3 Engineering / Detail Design) and approved by CROC These CTRs are to be used as the basis for the detail engineering schedule in the Execute phase

Feed Phase. In order to achieve the target project schedule-dates, CROC awarded the EPCM contract to WorleyParsons (Roll-over). Subsequently, there is no requirement for ITB package preparation for the EPCM contract. The contract between CROC and WorleyParsons for providing EPCM services will be on reimbursable basis.

For a detail breakdown of the EPCM Control Accounts refer to Section 3.3, page 11. Due to the fast-track nature of the project, the Execution Phase (EPCM) will commence directly after Completion of the

Page 7


2.3 MODULE FABRICATION (2-17-MFD)

tion of the Apache Compression module. The contract is intended to be placed on a fixed price lumpsum basis, with the alternative option for a unit rate contract, depending upon timing for contract award.

This contract is for the fabrica-

2.4 TRANSPORT & INSTALLATION (3-17-IND)

CROC will award a separate contract for the transport and installation of the compression module. The contract would be a fixed price lump-sum with risk associated with weather to be mutually

agreed.

Allow 4 weeks for mobilisation prior to Module Load-out date.

The IFB Package will be developed by Worley Parsons. The Transport & Installation contract shall be awarded early in the Execution-phase to lockin the heavy lift vessel and to allow the installation contractor to have the necessary input into the design.

The BF/HUC contract shall be awarded 4 weeks prior to mobilisation of the BF/HUC contractor.

TIE-INS / HUC (4-17-BFM)

Contract for all offshore Module Installation Pre-works, Brown Field Modifications, Shutdown Tie-in works, and Hook-up & Commissioning works.

Allow a further 6 weeks for mobilisation and site-preparations prior to commencement of the BF/HUC works. budget-cap per work-package.

Page 8

Allow a further 6 weeks for mobilisation and site-preparations prior to commencement of the fabrication works.

The IFB-Package will be developed by Worley Parsons.

2.5 BROWN FIELD MODS /

The contract will be Cost+ reimbursable basis with an agreed

The module fabrication contract shall be awarded 4 weeks prior to mobilisation of the fabrication contractor.

The IFB Package will be developed by Worley Parsons.


2.6

ACCOMMODATION VESSEL (5-17-ACV)

A contract for the Accommodation barge to be utilized for the Maintenance/Tie-in Shutdown through to Final Hand-over. Contract will be based on Dayrates for bare vessel plus additional charge per person.

vessel should be early in the EPCM to ensure availability in April 2012. Allow 4 weeks for mobilisation prior to commencement of Maintenance/Tie-in Shutdown.

The available barges will be reviewed during the FEED, and award/lock-in of the selected

2.7

CONTRACT AWARD LEAD TIMES

The following Approval lead-times should be taken into consideration for each Contract:: 01. Evaluation Report/Proposed Prequalification List (PPL)

Activity (4 wks duration)

02. Evaluation Report/Proposed Bidders List (PBL)

Activity (FS PPL, 4 wks duration)

03. Issued For Bid

Milestone (FS PBL )

04. Bids Received

Milestone (8 wks after IFB)

05. Techn./Comm. Bid Evaluations / Clarifications (T/C BE)


06. Contract Recommendation to CROC (CR)

Milestone (following T/C BE)

07. Contract Award

Milestone(2 wks after CR CROC)

“ Adventure is ju st bad planning” ~/~ Roald Am un ds en

Page 9


3.0 EXECUTION

3.1

“ There is

CROC KEY MILESTONE DATES

never enough

The contracting strategy above has been developed to support the following key milestone dates: •

PO Award Compressor/Turbine Package

16 Oct 2010

•

Start EPCM

2 Jan 2011

time, unless you’re serving it” ~/~

•

ETA Compressor/Turbine Package

14 Jan 2012

•

Module Load-out

10 Jun 2012

•

Module Installation

25 Jun 2012

•

Start Up

26 Aug 2012

3.2

SHUTDOWN DATES

CROC Operations have scheduled a Maintenance Shutdown Period of 14 days in Dec 11 – Jan 12. This shutdown opportunity will also be used by the Project to execute the Tie-in works (hotworks).

Malcolm Forbes

Operations expects the Planner to recommend the 14-day Shutdown window, based on the EPC schedulerequirements.

installation vessels shows a likely weather window for offshore installation between the months of April to July. The schedule can be based on the following scheduled shutdown windows:

Two other Shutdowns are scheduled for Module Lift and Start-up. Preliminary lift analysis for local

START DATE

DURATION WEEKS

TBA by Planner

2

Module Installation / Heavy Lift

25 Jun 2012

1

Start-Up

20 Aug 2012

1

SHUTDOWN OPPORTUNITY

Maintenance Shutdown (Tie-ins)

Page 10


3.3

ENGINEERING / DETAIL DESIGN

On fast-track project schedules, the key-driver for detail engineering will be the delivery

of AFC drawings/documents to support the Procurement and Fabrication process (staggered AFC-issues), rather than meeting a completion-date for one single AFC-design package.

AFC-issue dates are largely driven by Vendor Data I ncorporation. For the purpose of this schedule, allow for the following engineering activities:

WBS CODE

DESCRIPTION

1-01-PMA PROJECT MANAGEMENT & SUPPORT

1-01-PMA-01

Project Management & Support (EPCM)

1-01-PMA-02

QA/QC Management & Support

1-01-PMA-03

Engineering Management & Support

1-01-PMA-04

HSE Management & Support

1-01-PMA-05

HAZOP Engineering

1-01-PMA-07

Follow-on Engineering Support

1-01-PMA-08

As-Builting

1-01-PMB PROCUREMENT MANA GEMENT & SUPPORT

1-01-PMB-01

Procurement Management & Support

1-01-PMB-02

Purchasing

1-01-PMB-03

Expediting

1-01-PMB-04

Inspection

1-01-PMB-05

Contract Management

1-01-PMC CONSTRUCTION MANA GEMENT & SUPPORT

1-01-PMC-01

Construction Management & Support

1-01-PMC-02

Occupational Safety

1-01-PMC-03

Materials Control

1-01-PMC-04

Weight Control

1-01-PMD COMMISSIONING MANA GEMENT & SUPPORT

1-01-PMD-01

Commissioning Management & Support

1-01-PMD-02

Pre-Commissioning Plan & Procedures

1-03-EDA MODULE DETAIL DESIGN

1-03-EDA-01

Process Detailed Design

1-03-EDA-02

Structural Detailed Design

1-03-EDA-03

Mechanical Detailed Design

1-03-EDA-04

Piping Detailed Design

1-03-EDA-05

Electrical Detailed Design

1-03-EDA-06

Instrument Detailed Design

1-03-EDA-07

Safety & Risk Detailed Design

1-03-EDB BROWNFIEL D MODS / TIE-IN DESIGN

1-03-EDB-01

Brownfield - Process Detailed Design

1-03-EDB-02

Brownfield - Structural Detailed Design

1-03-EDB-03

Brownfield - Mech. Detailed Design

1-03-EDB-04

Brownfield - Piping Detailed Design

1-03-EDB-05

Brownfield - Electrical Detailed Design

1-03-EDB-06

Brownfield - Instr. Detailed Design

1-03-EDB-07

Brownfield - S & R Detailed Design

Page 11


3.4

Purchase Order for the Compressor Turbine Package on October 17, 2010.

PROCUREMENT

The critical long-lead item for the project is the Compressor Turbine package with a delivery time of 57 weeks, and 8 weeks transport to site. (total Estimated Time Arrival lead time 65 weeks). Due to this long delivery lead time, CROC have placed the

All other equipment have lead times of 12 months or less. Another critical element for delivery is the Primary Structural Steel, as this date drives the start date for the fabrication of steel structures for the Module.

Early Purchase Order award for structural steel will be critical to meeting the Module Load-Out date of 10 June 2012.

“ The future

The main driver for the offshore Tie-in works (Hot Work) is the ETA for the Double Block & Bleed valves (34 weeks).

widely

is here. It’s only not distributed yet” ~/~ William Gibson

WBS Code

Preliminary Material / Equipment List

Delivery Time to Site (weeks)

Comments

Common for All 6 - 05 - PBA

PK 601 - Piping Bulks

18 - 28

6 - 05 - PBB

PK 602 - Manual Valves (Ball)

30

6 - 05 - PBC

PK 603 - Manual Valves (Gate/Globe/Check)

30

6 - 05 - PBH

PK 608 - E & I Equipment & Bulks

6 - 05 - POB

PK 801 - Misc.Safety equipment & Others

16

6 - 05 - PSB

PK 402 - Secondary Steel

20

12 - 28

Brow nfi eld Mods / Tie-ins /HUC 6 - 05 - PBD

PK 604 - Double Block & Bleed Valves

34

6 - 05 - PEC

PK 503 - Condensate Pumps

32

Module Fabrication 6 - 05 - PBE

PK 605 - Actuated Valves

32

6 - 05 - PBF

PK 606 - Control Valves

32

6 - 05 - PBG

PK 607 - Pressure Safety Valves

32

6 - 05 - PCA

PK 701 - LV Switchgear

26

6 - 05 - PEA

PK 501 - Suction Scrubbers

42

6 - 05 - PEB

PK 502 - Air Coolers

32

6 - 05 - PED

PK 504 - Compressor Turbine Package

65

6 - 05 - PSA

PK 401 - Primary Steel

30

Page 12

(Awarded on 17 Oct 10 by CROC)


3.5 PURCHASE ORDER AWARD LEAD TIMES

The following PO Award leadtimes should be taken into consideration for each Purchase Order:

01 Released For Quotation (RFQ)

Milestone

02 Bids Received

Milestone (6 wks after RFQ)

03 Technical / Commercial Bid Evaluations


04 PO Recommendation to CROC

Milestone (following T/CBE)

05 PO Award

Milestone (2 wks after PO Recommendation)

06 Vendor Data Incorporation

Activity (6 wks after PO Award, 6 wks duration)

07 ETA Equipment-Item / Bulk Materials

Milestone ( “lead-time”- weeks after PO Award)

3.6 FABRICATION & INSTALLATION DURATIONS

To better understand the schedule requirements for Module fabrication & installation, the following calculation-basis can be assumed: Modul e (2,500T) Fabrication

Installation

Fabrication & Construction Note (1

8 - 10 mths

Load-out & Sea-fastening

2 wk

Transport Note (2

2 wk

Installation

1 wk Note (3

HU&C

7 wks Note (4

Notes: (1. Fabrication & construction of topside facilities is largely dependant on the type of equipment being installed, the proportion of exotic piping materials, and the overall weight of the facility. The duration above is based on historical data for the respective module weights. In addition, these durations include Onshore PreCommissioning prior to load-out & installation.

(2. Transport of the module will only require 3 - 7 days coming from a yard within South East Asia, (Batam, Singapore, Thailand or Johor Baru) however for schedule purposes, assume maximum 2 weeks

(4. The short duration for O ffshore Hook-up & Commissioning of the Module is based on the assumption that much of the commissioning of equipment can be performed onshore prior to load-out.

(3. Successful Heavy Lift installation of the Module could be achieved within a day. However, heavy-lift installation requires calm weather conditions, hence the 1 week contingency allowance.

Page 13


3.7 FABRICATION / INSTALLATION / HUC ACTIVITIES

For the purpose of this exercise, the EPC schedule should contain the following Construction activities:

MODULE FABRICATION

Ac ti vi ty ID

Descri pti on

Structural

2-06-MFD-20

Pre-Fab / Erection Primary Steel

2-06-MFD-22

Pre-Fab / Erection Secondary Steel

2-06-MFD-24

Pre-fabrication

2-06-MFD-26

Piping Erection

Mechanical

2-06-MFD-28

Mechanical Equipment Installation

E&I

2-06-MFD-30

Electrical Equipment Installation

2-06-MFD-32

E & I cabling & Wiring

Pre-Commissioning

2-07-MFD-20

Onshore Pre-Commissioning

Load Out

2-08-MFD-22

Load Out & Seafastening

Piping

BROWN FIELD MODIFICATIONS Ac ti vi ty ID

Descri pti on

Pre-Shutdown

4-06-BFM-20

Tie-in Pre-Works – Onshore Piping Pre-Fabrication

4-12-BFM-20

Tie-in Pre-Works – Offshore Scaffolding

4-12-BFM-22

Tie-in works

4-12-BFM-24

Major Hot Works – Pipe Support

4-13-BFM-20

Major Hot Works – Hard Point Footing Pads

4-13-BFM-22

Major Hot Works – Guides & Bumpers

4-13-BFM-24

Module Pre-Works – Structural Modifications

4-13-BFM-26

Module Pre-Works – Piping erection

4-13-BFM-28

Module Pre-Works – E&I Cabling & Wiring

TRANSPORT & INSTALLATION

Ac ti vi ty ID

Descri pti on

Transportation

3-09-IND-20

Module Transportation

Heavy Lift Shutdown

3-09-IND-22

Lift & Install Condensate Export Pump

3-09-IND-24

Lift & Install Compression Module

HOOK-UP & COMMISSIONING

Ac ti vi ty ID

Descri pti on

HUC

4-15-HUC-20

HUC – Compression Module

4-15-HUC-22

HUC – Condensate Export Pump

4-15-HUC-24

Commissioning / Start-Up works

Maintenance Shutdown

Post-Shutdown

Start-Up Shutdown

Page 14


3.8

EPCM MILESTONES

In addition, the EPC schedule should contain the follo wing Key Milestones : GENERAL

MODULE FABRICATION

BROWN FIELD MODIFICATIONS

TRANSPORT & INSTALLATION

HOOK-UP & COMMISSIONING

Acti vity ID

Milestone Descriptio n

1-17-GEN-10

Start FEED

1-17-GEN-12

Completion FEED

1-17-GEN-14

Start Module Fabrication

1-17-GEN-16

Start Brownfield /Tie-in Works

1-17-GEN-18

Start Maintenance Shutdown (2 wks)

1-17-GEN-20

Module Load Out

1-17-GEN-22

Start Heavy Lift Shutdown (1 wk)

1-17-GEN-24

Start Start-Up Shutdown (1 wk)

1-17-GEN-26

Start-Up / Hand-over

1-17-GEN-28

Project Completion

Acti vity ID


2-17-MFD-10

Start Module Fabrication Works

2-17-MFD-12

Mechanical Completion Date

2-17-MFD-14

Module Load-Out

Act ivi ty ID

Milest one Descri pti on

4-17-BFM-10

Start Brownfield /Tie-in Works

4-17-BFM-12

Start Maintenance Shutdown

4-17-BFM-14

Completion Maintenance Shutdown

4-17-BFM-16

Completion Module Installation Pre-Works

Acti vity ID


3-17-IND-10

Start Heavy Lift Shutdown

3-17-IND-12

Completion Heavy Lift Shutdown

Act ivi ty ID

Milest one Descri pti on

4-17-HUC-10

Start Up Shutdown

4-17-HUC-12

Completion Start-Up Shutdown

Page 15


4.0 TRAINING EXERCISES

4.1 P6 SET-UP & FIRST PASS EPC SCHEDULE

EPC-Driven scheduli ng approach Planner should utilize the methods for Execution-Phase scheduling as described in Module 1

Introduction to Project Controls, chapters 7.0 Schedule Development & 8.0 Schedule Control This Schedule method is an interactive schedule process that involves all Project Phase Owners (Engineering, Procurement and Construction), as

opposed to the traditional “Single Phase - Driven” schedule technique, where the outcome usually supports the ob jectives of one stakeholder only (e.g Construction-driven schedule), and could result in inefficient work-processes in other phases.

Preparatory works Ensure the project settings are as follows: Refer P6 Trainin g Manual for any assistance on how to set-up and create project in P6 •

Project Name

: TRN

•

Project Title

: Tatanka Gas Development

•

Planned Start

: 12 Sep 2010

•

Data Date

: 12 Sep 2010

•

Calendar

: 7 days work week

WBS Structure:

should be 1.

Set up WBS Coding structure, to support a Lay-out format as shown on pages 17-18

The bars and milestone should be labelled with the Activity Name, label position “right”.

Lay-out setting: Format bars/milestones - Check the Remaining bars and Milestone. Other option-boxes remain un-ticked. Select green colour for remaining bar with no end-points and purple for milestone. Row

Group and Sort: •

Check Show Group Totals

•

Check Shrink vertical grouping bands

•

Group by: WBS (with Indent checked to All levels)

•

Show: Name/Description

Timescale format : •

Check Two Lines

•

Timescale Start: PS -2W;

•

Show Primary Dates

•

Type: Calendar

•

Date Interval: Year/Month

Save Lay-out as “EPC Schedule Lay-out” and available to “Project”

“ Who says nothing is impossible? Some have been doi ng nothing for years” ~/~ Au th or Unknown

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Page 17


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4.2

PROCUREMENT SCHEDULE

Set up a “first-pass” Procurement – Equipment & Materials schedule by prioritizing the activities on longest delivery-time. Assume 1st RFQ-issue(s) 6 weeks after EPCM kick-off. Include delivery-times in the

4.3

CONSTRUCTION SCHEDULE

Construction (Fabrication / Installatio n / HUC) schedule Set up a “first-pass” Construction/Fabrication schedule based on the “Preliminary” Procurement schedule. Key considerations for Module Fabrication Schedule: 1) First Cut of Steel (Start Steel

Activity descriptions between brackets. e.g RFQ – Suction Scrubber (42 wk). Based on the assumption that most of the bid evaluation will be done by the same team, ensure that Bid Evaluation periods are realistically distributed to avoid work-peaks and/or overlaps.

Prefab/Erection) - 3 months before ETA 1st Equipment item 2) Start Mechanical Installation at ETA 1st Major Equipment item 3) Start Piping Erection 3 wks after 1st Equipment installation

The “First cut of steel” is planned 3 months before ETA of the first major (Mechanical) equipmentitem. To meet that date, we should establish the required ETA date for Primary Steel, and work back from this date to determine whether it is necessary to include Primary Steel as a long lead item during the FEED-phase.

5) Start E & I Equipment installation:: ETA 1st E & I Equipment 6) E&I Cabling & Wiring 3 wks after start Piping erection 7) Start Onshore Precommissioning 4 wks after ETA Compressor Package 8) Start Load-out after Mechanical Completion of Module

4) Start Piping Pre-fabrication minimum 7 wks before Start Piping Erection

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Key Consideration for BrownField/Tie-in work s: 1) Start Tie-in spool fabrication: ETA Piping Bulks 2) Start Maintenance Shutdown 2 wks after ETA Double Block & Bleed valves 3) Start Module Installation PreWorks after Maintenance Shutdown To ensure that the Procurement schedule supports the Construction schedule, we should establish whether the earlier scheduled Procurement ETA dates are feasible or whether there is a need to pull some of the procured items into the FEEDphase as a long lead it em. After this review, the ETA dates in the schedule can be considered Preliminary ROS (Required On Site) dates, and should be passed on to Procurement to firm up their detail Procurement

4.4 CONTRACT PLAN

Plan /Schedule. Procurement can now prioritize their procurement activities to support these Construction ROS dates, as well as their Expediting Plan to support the Engineeringschedule (Vendor Data), and Construction schedule (ROS Equipment & Materials) The “real” ROS dates will drop out of the Detailed Construction/Fabrication schedule.

4.5 ENGINEERING SCHEDULE

Contracts Schedule Once the Construction schedule is fixed, the Contracts Schedule can be developed. Key considerations for this schedule can be found in section 2.0 Contract Strategy, sections 2.1 - 2.7.

Page 20

Detail Engi neering Schedule Based on the Procurement and Construction schedule the Detail Engineering schedule can be developed. Key driver here is to issue AFC

This schedule will be developed by the contractors after contract award, and will contain Construction Work-package and Job Card details. By right, the ROS dates derived from the detailed schedule should be either equal or later than the ROS dates shown in this schedule. (if the latter, the project schedule will develop some Float).

drawing & documents to support the Procurement schedule (RFQ’s and Bid Evaluations) and the Construction schedule (AFC deliverables). A list of Control Accounts can be found in section 3.3.


5 . 0 S C H ED U L E B A S I S M E M O R A N D U M

“All

5.0 DOCUMENTING THE SCHEDULE

generalizations are false, including this one.” ~/~ Woody Allen

Documenting the basis for the development of the Schedule is a widely accepted best practices in the Industry (AACEI Recommended Practice No. 38R-06). Within WorleyParsons, the schedule development process is considered as important as the schedule itself ; understanding how and when the schedule was developed, the information made available at the time of development, and the parties involved in the development provides a great deal of information to the stakeholders of the project. The Schedule Basis Memorandum (SBM) is a document that defines the basis for the development of the project schedule and is a key deliverable in every Schedule Package issued by WorleyParsons. By capturing the “why, how, who, when and what” during the development of the schedule, the SBM provides valuable historical information in terms of: •

trols personnel. The SBM also substantiates confidence and the degree of completeness of the project schedule. It is worth noting that the SBM will not address the technical qualities of the schedule (open ends, use of constraints, etc.) or compliance to sound scheduling practices; quality, validity and “feasibility” of the schedule are determined by other reviewprocesses, such as a Schedule Quality Assessment and Schedule Validation Process. Simplified, the objective of the SBM is to explain why the schedule completion date is what it is. Typically, the Schedule Basis Memorandum document defines the following: • Project Description, Schedule Process & Set-Up details • Overview Key Strategy • Key Project Dates • Planning Basis

• Scheduling Threats • Issues and Concerns • Risks and Opportunities • Assumptions • Exclusions • Exceptions •

•

Baseline Changes/ Reconciliation Schedule Reserve

The Schedule Basis Memorandum should be updated with every re-baseline. A checklist may be attached to indicate the available project information and the degree of completeness (Schedule Input Checklist and Maturity Index)). The Maturity Level Index identified in the table provides the user with the ability to confirm and record the completeness, and therefore, the usefulness of each deliverable. All items are taken from the AACE Recommended Practice No. 18R-97.

• Critical Path

Identifying key elements, issues and special considerations (assumptions, exclusions, risks/ opportunities, etc.) to support reconciliation and analysis.

•

A baseline and Terms of Reference (TOR) for future acceleration & recovery scenarios, change management, and Cold Eyes schedule reviews

•

Assisting personnel who are transitioning into the project, specifically new Project Con-

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Table 1 - The Sc hedule Input Checklist and Maturity Matrix (source AACEI Recommended Practice 18R-97) MATURITY

IDENTIFY

EVAL UATE

DEFINE

EXECUTE

Class 4

Class 3

Class 2

Class 1

Project Scope Description

General

Preliminary

Defined

Defined

WPMP Project Phase Scope Definition

Defined

Defined

Defined

Defined

Conceptual Study

Defined

-

-

-

Preliminary

Defined

-

-

Engineering Design Specification

-

Preliminary

Defined

-

Project Execution Plan

-

Preliminary

Defined

Defined

General

Approximate

Specific

Specific

-

Preliminary

Defined

Defined

Assumed

Preliminary

Defined

Defined

CAPEX Estimate

Class 1

Class 2

Class 3

Class 4

Funding Strategy

General

Preliminary

Defined

Defined

Work Breakdown Structure (WBS)

-

Preliminary

Defined

Defined

Organization Breakdown Structure (OBS)

-

Preliminary

Defined

Defined

Assumed

Assumed

Preliminary

Defined

Procurement Strategy

-

Assumed

Preliminary

Defined

Fabrication / Modularization Plan

-

Preliminary

Defined

Defined

Project Org Chart / Division of Responsibilities

-

Preliminary

Defined

Defined

General

Preliminary

Defined

Defined

Housing / Accommodation Plan

-

Preliminary

Defined

Defined

Logistics Plan

-

Preliminary

Defined

Defined

General

Preliminary

Defined

Defined

-

Preliminary

Defined

Defined

Started

Preliminary

Complete

Complete

Plot Plans

-

Preliminary

Complete

Complete

Process Flow Diagrams (PFDs)

-

Preliminary

Complete

Complete

Utility Flow Diagrams (UFDs)

-

Started

Complete

Complete

Piping & Instrument Diagrams (P&IDs)

-

Started

Complete

Complete

Process Equipment List

-

Preliminary

Complete

Complete

Utility Equipment List

-

Preliminary

Complete

Complete

Electrical One Line Diagrams

-

Started

Complete

Complete

Specifications & Datasheets

-

Started

Complete

Complete

General Equipment Arrangement Drawings

-

Started

Complete

Complete

Schedule Classification General Informatio n

Design Basis Memorandum

Plant Location Integrated Project Plan Plant Production/Facility Capacity

Contracting Strategy

Communications Plan

Risk Management Plan Quality Plan Engineering Deliverables Block Flow Diagrams

Maturity Level Index A Deliverable not suitable for use B Deliverable Incomplete to the degree of satisfaction as defined by Classification Table C Deliverable Complete to the degree of satisfaction as defined by Classification Table

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The following provides a further understanding of the requirements of the Schedule Basis Memorandum. 5.1 PROJECT DESCRIPTION, SCHEDULE PROCESS, SET-UP DETAILS

This section sets the scene of the SBM document; it contains a brief description of the project as well as the process and personnel involved in the development of the project schedule. Typically this section also contains a reference to: •

•

System set-up and Application Software Calendars

Also, this section refers to the Schedule Input Checklist and Maturity Matrix to indicate the available information (and the degree of completeness). This Checklist provides an understanding of the information used for the development of the schedule and is usually attached as a supporting document. For a complete listing of required deliverables refer to page XXX Checklist  Where is the physical loca-

tion of the Schedule files on the LAN network

“ As I said befor e, I never repeat my self.” ~/~ Guus Hiddink

 Which calendars have been

applied? 5 day Standard Workweek; 7 day Workweek; Winter breaks; Monsoon breaks; Middle East standard work week etc…?  Is there a Work Breakdown

Structure (WBS) that is assigned to all portions of the scope of work?  Has the Schedule Input

Checklist and Maturity Matrix been developed?  Were there any updates/

changes taken into consideration in the Transition time-frame (period between Completion of FEED and Commencement Execute Phase)? 5.2 OVERVIEW KEY STRATEGIES

This section outlines what the project scope of work includes, as well as what it excludes. Also, the Work Breakdown Structure, the Organizational Breakdown Structure and the Division of Responsibility should be clearly identified to each and every portion of the scope of work. This will eliminate omissions to the project scope and minimize redundancy and overlap of existing personnel, contractors, etc. The execution strategy should described and identified:

Briefly describe the type of work (new project, addition or expansion, revamp, relocation). Briefly describe the execution strategy, specifically whether the schedule is considered Fast-Track (engineering incomplete at the start of construction plus aggressive execution) or contains Shut-downs of existing facilities (planned shut-down, non standard workweek, high overtime). Briefly describe the contracting strategy (Multiple EPC contracts, Trade based contract strategy, Facility based contract strategy?) Identify the average and peak resource demand for the pro ject, as well as the average and peak performance progress that the project can attain. Checklist  Is there a supporting docu-

ment that describes the scope of work in complete detail?  Does the Scope of Work

Document clearly state what is included?

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 Does the Scope of Work

Document clearly state what is not included?  Is there a Division of Re-

sponsibility (DOR) or Organizational Breakdown Structure (OBS) that clearly and concisely identifies the responsibility for each and every portion of the scope of work?  Has a drawings list been

completed? Have the specifications used been developed?  Has the estimate been pro-

vided? Was the estimate approved?  Is there an execution strat-

 Does the Execution Strat-

egy describe the contracting strategy (Multiple EPC contracts, Trade based contracts, Facility contracts?)  Does the Execution Strat-

egy describe the Procurement Strategy (Identified Procurement Packages)  Does the execution strategy

identify the cash flow profile (availability of funds) for the project?  Does the execution strategy

identify the average and peak resource demand for the project, as well as the average and peak performance progress that the pro ject can attain?

egy?  Has a WBS been developed  Does the Execution Strat-

egy describe the type of work (new project, addition or expansion,

that supports the execution of the project?  Does the schedule support

the execution of the project?  revamp, relocation)? 5.3 KEY PROJECT DATES

Does the Execution Strategy describe specifically whether the project is considered one of the following:  Standard execution

(standard workweek, spot overtime, non-shutdown)  An aggressive execution

approach (non-standard workweek, high overtime)  Fast-Track Approach

(engineering incomplete at the start of construction plus aggressive execution)  Shut-down (planned shut-

down, non standard workweek, high overtime)

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This section describes the Key Milestone Dates, such as the Project Start and Completion

Dates, Regulatory / Environmental Key Dates, and Key Interface Dates. If the schedule is prepared as a re-baseline, then a Key Project Dates Report identifying any significant variances between any previously “approved” schedules. Also, this section should identify the statutory holidays to be acknowledged, turn-around / shut-down dates, Christmas Breaks, Winter/Monsoon Productivity Loss Dates, and Summer Extended Workweek dates. Checklist  Are the Key Milestone

Dates, such as the Project Start and Completion Dates, Regulatory/ Environmental Key Dates, and Key Interface Dates identified?  Are the statutory holidays,

turn-around / shut-down dates, Christmas Breaks, Winter/Monsoon Productivity Loss Dates, and Summer Extended Workweek dates identified?

“ Better to understand a little than to misunderstand a lot.” ~/~ Louis Van Gaal


5.4 PLANNING BASIS

This section describes the methods and sources used for determining the project schedule, including: •

•

•

•

•

•

•

“ Change is inevitable, except fr om

•

•

~/~ Jay Leno

The construction accessibility, lay down and staging areas and temporary facilities. This will assist the pro ject team in determining the prioritization or postponement of modules and installation of equipment to allow construction equipment and resources to be used more efficiently and effectively. Identify basis for any contractor schedules Identify Resource Planning Methodology Activity Identification, Duration Estimating Identify source and methodology for determining logic and sequencing Identify labor productivity adjustments, including congestion assessment, extended work hours, winter/ monsoon work

•

•

Identify basis for start-up and sequencing requirements, Identify owner requirements (regulatory, environmental, quality / inspection requirements)

Checklist  Does the Planning Basis

identify the Resource Planning Methodology?  Does the Planning Basis

identify how the Activity Identification, and Duration Estimating was completed?  Does the Planning Basis

identify the funding source and cash release profiles?  Does the Planning Basis

a vending machine.”

Brief description of the high level Engineering, Procurement, Construction and Commissioning sequencing of the project and “area” paths for routing materials, equipment and people while on the construction premises.

•

Identify construction equipment utilization plan Document all production rates Identify equipment, modular, fabrication and bulk delivery

identify source and methodology for determining logic and sequencing?  Does the Planning Basis

identify labor productivity adjustments, including congestion assessment, ex-

tended work hours, winter work?  Does the Planning Basis

identify construction equipment utilization plan?  Does the Planning Basis

document all production rates (estimated unit rates)?  Does the Planning Basis

identify equipment, modular, fabrication and bulk delivery methodologies / strategies?  Does the Planning Basis

identify the basis for any contractor schedules?  Does the Planning Basis

identify the basis for start-up and sequencing requirements?  Does the Planning Basis

identify owner requirements (regulatory, environmental, quality / inspection requirements)?  Does the Planning Basis

identify the Quality Plan?

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 Does the Path of Construc-


the discretion of the project team, however, the SBM should provide enough detail so that all involved can focus on the areas that could potentially delay the outcome of the project.

tion describe the “area” paths of construction (routing of people and equipment while on the construction premises)?

The Critical Path described here need not be a detailed CPM of the schedule, but rather a high level description.

tion describe the high level construction sequencing of the project?


tion describe the construction accessibility, lay down and staging areas and temporary facilities? 5.5 CRITICAL PATH

The purpose of completing this portion of the document is to inform the project team as well as others of the critical path(s) of the project. Note, depending on the required level of detail, the complexity of the project, and the geographical size of the project, there may be more than one critical path. The amount of detail required to describe the critical path is at

A detailed CPM schedule and near critical activities list should be attached to the Schedule Basis Memorandum.

project from moving forward. Examples of schedule threats are internal craft availability, funding, etc. Schedule threats should be considered events that the company can control (internal to their organization). External threats such as extreme weather conditions, strikes, etc. are considered external conditions and should be identified on the Risk Log. Checklist

Checklist  Has a summary statement

of the critical path(s) been provided.  Has a Critical Path Sched-

ule been provided?  Has a Near Critical Activities

 Are there any Schedule

Threats described that may restrain the project from moving forward. (Examples of schedule threats are internal craft availability, funding, etc.) 5.7 ISSUES & CONCERNS

List been provided?  Is there enough detail in the

schedule to properly identify the Critical Path 5.6 SCHEDULING THREATS

This section lists sources of threats that may restrain the

A number of issues and concerns will surface during the development of the schedule. The purpose of this section is to identify any issues or concerns that could not be resolved prior to the approval of the schedule, or the turnover of the schedule to the implementation team, etc. An Issues and Concern Log identifying open as well as closed items should be provided to the project team for review. Checklist  Has an Issues and Concern

Log been generated?  Does the Issues and Con-

cerns Log identify all open and closed items?

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•

The project will not incur any overtime, all project funding is available at project start, etc.

Checklist  Have all the assumptions

(assumptions made while developing the schedule) been identified and communicated to the team? 5.10 EXCLUSIONS

Describe items that have not been included and therefore not supported during the development of the schedule. Some examples are: • Specialty contractors / resources •

5.8 RISKS & OPPORTUNITIES

This section is to provide an understanding of the critical risks that may occur during the execution of the project. The items presented here should indicate the magnitude (impact) and the probability of occurrence. A Risk Assessment should be completed and all risks should be identified on the Risk Event Log.

“Exceptions always out number rules.” ~/~ Al ber t Einstein

Please note, any risk events that have a high probability (80%+) of occurring (and a medium to low impact to the project) should be managed as if the event will happen and therefore, the management team should apply the appropriate schedule reserves and buffers necessary for controlling the activities and the overall pro ject.

Shared construction equipment

Checklist  Has a Risk and Opportuni-

ties Log been generated?  Has the probability and

magnitude been identified for all the risks?

Checklist  Has all exclusions been

described? This includes all items that have not been included and therefore not supported during the development of the schedule.

5.9 ASSUMPTIONS 5.11 EXCEPTIONS

Briefly describe the assumptions used while developing the schedule. Assumptions identify the parameters and conditions used for determining the outcome (project start to completion dates) of the project schedule. Some examples of assumptions are: •

•

Fabrication shops will complete the required work as per our priorities and timing; The required craft is available:

This section should identify any significant deviations from the standard operating practice for developing schedules, including the process, reviews and acceptance of the project schedule. Any deliverables identified on the Schedule Input Checklist (see attachment) that were not provided or did not meet the degree of completeness necessary for the proper development of the schedule should be identified as an exception.

Page 27


Checklist

ery plan or a reconciliation effort has been completed?

 Was the schedule built fol-

lowing the standard operating practices?  Have all significant devia-

tions from the standard operating practice for developing schedules been identified? 5.12 BASELINE CHANGES / RECONCILIATION

This section should be completed if and when a more detailed schedule has been developed, or the baseline has changed. Provide a high level understanding as to why the schedule has changed from its original or re-baselined schedule. If there has been a change to the schedule and a recovery plan or a reconciliation effort has been completed, describe the events pertaining to the mitigation of the contributing factors to the delay or acceleration. Checklist  Does the current schedule

replace another schedule?  Has the schedule changes

been identified and communicated to the team?  Has the events pertaining to

the mitigation of the contributing factors to the delay or acceleration been communicated to the team?  Has a change to the sched-

ule identified, and a recov-

Page 28

 Has a Schedule Risk Analy-

sis Report been submitted as part of the SBM?

5.13 SCHEDULE RESERVE

Conclusion Based on the completed risk assessment and the understanding of the expected completion dates, the project team can then determine the required schedule reserve for the successful completion of the pro ject. There are two ways of applying schedule reserve in order to ensure the team achieves their desired outcome (probability of success based on their confidence level and risk avoidance culture). 1. Quantitative Assessment: Determine the optimistic, pessimistic and most likely durations for the activities in order to calculate the expected durations. This process identifies what the project team should expect in regards to activity durations. 2. Qualitative Assessment: Based on the magnitude and probability of each risk event identified on the Risk Event Log, add the appropriate amount of specific schedule reserve for each risk event that may impact the project. As an attachment to the Schedule Basis Memorandum, provide a table or schedule identifying what activity or event has schedule reserve, and the amount being applied. Checklist  Has a Schedule Risk Analy-

sis been completed?

The Schedule Basis Memorandum is a document used to provide an understanding of how the schedule was developed, the information and pro ject definition provided for the development, and the team members involved in the process. The Schedule Basis Memorandum increases the awareness of the development of the schedule for executing the pro ject to successful completion. This awareness provides an increased level of confidence, as well as an increased state of preparedness and readiness. The use of a Schedule Basis Memorandum provides the project team with the opportunity for improving the planning and scheduling process.

“Doesn't expecting the unexpected make the unexpected become the expected?” ~/~ Karl Marx

Worley Parsons PCDP - Module 02 - EPC Schedule Development

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