EPCC Hydrocarbon Downstream L&T 09.01.2014

By : L&T Hydrocarbon - HMD

Execution of LSTK / EPCC Projects

Hydrocarbon Mid & Downstream


EPCC / LSTK Project -

• Is a unique endeavour

• Is designed to achieve a agreed objective/s

• Requires a variety of resources

• Needs to be completed within specified time &

cost

2


Project Management -

• An art & science of converting vision into reality

• Application of knowledge, skills, tools & techniques

• Involves stages - Initiating , Planning, Executing,

Controlling and Closing

3

Owner

PROJECT STAKE-HOLDERS

Licensor

PMC

EPCC / LSTK Contractor

Vendors / Subcontractors

Service ProvidersHydrocarbon Mid & Downstream

5

CUSTOMER EXPECTATIONS TODAY:

• Concept to Commissioning

• Facilitate & Suggest

• No hassles & worries of monitoring

• No running around vendors

• No multiple disputes & legal battles

• No sleepless nights

Hydrocarbon Mid & Downstream6

LSTK Concept – Advantages to OWNER

Reduced Organizational Resources

OptimumCompletionTime

ComprehensiveGuarantees

Coordinated Design & Engg.

CommittedCost

SinglePointResponsibility

Minimal Risk


7


LSTK – A Global Trend

LSTK is a global trend, because of:

• Single point responsibility

• Comprehensive guarantees for performance

• Minimal risk exposure to Owner

• Use of core competency of Contractor

• Coordinated efforts, lesser site modifications

• Better involvement of Owner in Key functions

• Minimum organization resources by Owner

8

Process Licensor

Owner

PMC

Project Management Team

EPCC Contractor

Vendors(1,2,…,n)

ConstructionSub-contractors

(1,2,…,n)

Throughout AllPhases of the

Project

LSTK MODEL

Project Definition Phase EPC Implementation Phase


PMC

EPCC

EPCC

PROJECT PHASES

Technology Selection

Process Package Dev.

Tender Preparation

Detailed Engineering

Procurement

Construction

Commissioning

FEED Package

Performance Run

Owner

PMC

Co

ntr

olled

By

Resp

on

sib

ilit

y

Licensor

Licensor


10

Pre-order Stage


PROPOSAL PREPARATION

• Understanding Customer Requirements

• Study of Engg. Specifications / Clarifications from PMC

• Basic System Configuration & Design

• Parametric Comparison & Value Engineering

• Project Cost Estimation

• Study of GCC / SCC

• Assessment of Risks & Deviations

• Learnings from Past Projects

• Technical Proposal Preparation

• Preparation of Execution Plan & Project Schedule Preparation


Execution Phase


PROJECT COMPLETION MILESTONES

Typical project with 36 months PAC

36 Months

Zero Date

0 36

Bid Validity

Bid Closing Date

Initial Acceptance

FinalAcceptance

48

Mechanical Completion RFSU

Warranty Period *12 Months

12 Months

120 Days

Commissining PGTRZero Date Initial

AcceptanceFinalAcceptance

Mechanical Completion RFSU


Commg. PGTR

30

Bid

Validity

Zero Date Provisional Acceptance

FinalAcceptance

RFSU


PGTR

Hydrocarbon Mid & Downstream 15

Blue Print

Plant

PROJECT MANAGEMENT



Project Management Philosophy

17


Project Task Force

Project Manager

Project EnggManager

Planning Engineer

Project Control Manager

HSE Manager

Res. Constn. Manager

Document Controller

Project Procur. Manager

Dy. Project Mgr E&I

Procurement Team (PPC)

Commissioning

Manager

QA & I Manager

DyPEM

Engg

Team

Support Team:

IT & EALPS:

Contract Manager

Qty Controller

Construction Team(HCP)

Cost Control

Dy. Project MgrPiping & Packages

Executive Sponsor

18

EXECUTION STRATEGY

• Establishing work centres

• Strict adherence to specifications, codes/standards, local

bye-laws and regulations

• Early ordering of LLEs

• Global sourcing

• Construction driven Engineering & Procurement

• Adherence to Highest HSE and Quality Standards

• Close interaction with Owner/PMC to resolve issues

• Effective Interface with other agencies / contractors

• On-time delivery of a safe and trouble free plant



HSE Management System Framework


Strategic HSE Objectives

Organisational Culture

Legislation and Standards

Systems & Procedures

Occupational Injury or Illness

Performance Data & Analysis

Risks to People & Environment

Training & Motivation

Contractors Engagement

21


HSE Implementation

22


Overview of Quality Management


Accreditation

ISO 9001 OHSAS 18001 ISO 14001ISO 27001


QA-QC Interface in Project Execution

PLANNING & MONITORING

• Project Network (L3 & L4 levels)

• Monitoring of Intermediate Milestones

• Engineering

• Procurement

• Construction

• Pre-commissioning and Commissioning

• Detailed schedule for

• Critical Manufacturing

• Packages

• Heavy erection

• Systems/Sub-systems for PC/Commissioning

• Recovery Plans


PROJECT STAGES


Micro Planning on Primavera

PROJECT PLANNING

15-Nov-0215-Dec-0215-Jan-0315-Feb-0315-Mar-0315-Apr-0315-May-0315-Jun-0315-Jul-0315-Aug-0315-Sep-0315-Oct-0315-Nov-0315-Dec-0315-Jan-0415-Feb-0415-Mar-0415-Apr-0415

Month Act 0.00 0.17 0.72 1.59 2.60 4.28 3.55 4.47 3.48 2.99 3.43 6.17

Cum Orig Sch. 0.00 0.02 1.39 3.78 7.18 11.25 16.19 21.79 27.49 33.37 39.60 46.01 52.59 59.99 67.47 74.60 81.64 87.90

Cum Org Est Fronts 0.63 2.36 4.48 8.52 14.60 21.57 28.05 36.09 43.46 53.52 59.74 67.49 74.61 81.69 87.92 93.32 96.91 98.50

Cum Targets 20.33 25.01 30.29 37.47 40.48 48.20 55.82 63.28 70.73 77.89

Cum Projected Fronts 30.09 36.71 43.54 48.30 54.20 62.87 70.71

Cum Actual Fronts 0.00 0.44 4.85 7.46 13.32 14.44 19.66 22.61 30.09 35.37 37.23 44.60

Cum. Act. 0.00 0.17 0.89 2.48 5.08 9.37 12.92 17.38 20.87 23.86 27.29 33.46

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

110.00

MonthMonth Act Cum Orig Sch.

``

Cum Target

Cum Orig Fronts

Cum Actuals


DETAILED ENGINEERING

• Design Basis Report

• Time Schedule for Detailed Engineering

• Early Release of Specifications for procurement of LLEs

• Perform Design/HSE Reviews (HAZOP / 3D Model)

• Conduct Engineering Studies (HAZID / SIL / SAFOP)

• Generation of Accurate & Matching Bill of Material

• Release of Construction Drawings (AFC), as scheduled

• Co-ordination with Owner and PMC for Reviews / Approvals

• System Integration

• Field Engineering & Commissioning Support

• As-built Documentation



Design Reviews

31


Engineering Audit Process

32


Constructability Reviews

33


Value Engineering

Identify and prioritize area where value engineering possible

Work shop with all task force members to decide timeline, implementation feasibility & expected benefits for VE ideas

Track implementation of the VE ideas and measure actual VE benefits

Disciplines/Task Force Members are encouraged to come up with VE ideas, in addition to the databases

Identification and prioritization of opportunities where quantity / specification could be optimized leveraging engineering competencies without compromising the basic technical requirement

Work shop is conducted at 2 phasesDuring the Proposal Stage.

At the start of Project Execution

34

Integrated Engineering Through 3D Modeling

PDS 3D MODEL

ELECTRICAL MODELING

PROCESS2D

ENVIRONMENT

EQUIPMENTMODELING

INSTRUMENT MODELING

CIVIL AND STRUCTURAL MODELING

PIPING MODELING

FIRE FIGHTINGMODELING


PDS – MODEL (TYPICAL REFINERY UNIT)



Knowledge Management

37

Supply Chain Management




39


• Ordering as per Engineering Specifications

• Matching Deliveries as per Project Schedule

• Ordering as per schedule & within budget

• Expediting through network / agencies

• Addressing Quality Requirements

• Inspection Co-ordination

• Supplier Relations

• Timely Deliveries at Site

• Vendor support during pre-commg and commg

• Spares Management


Global Sourcing

• Sourcing of materials, Equipment and services from qualified &

approved vendors

• Evaluation of vendors based on

Past Experience

Price Competitiveness Quality Delivery Reliability After-Sales-Service

• Indigenous/Global sourcing

• Through State-of-the-Art SAP system

41Hydrocarbon Mid & Downstream


Global Sourcing for ongoing Job

INDIA – 64%Packages, Static, Piping,

Rotary, Structural,

Instruments, Electrical

USA – 5%Static, Packages,

Instruments, Piping

Others – 1.2%

South Korea – 9%Static, Packages, Piping

EUROPE – 6.6%(France, Germany, Italy,

Spain, UK, Belgium,

Netherlands, Sweden)

Piping, Static, Instruments,

Electrical, Rotary, Packages

Japan – 14%Rotary

Malaysia– 0.1 %Static

Singapore – 0.1%Instruments

42

Ordering Cycle

Issue of

MR

Approval

of MR

Issue

of

TBE

Approval

of TBE

Enquiry

Floating

Offers

Receipt

Technical

Query

Issue Award

Recomendation

Approval of

Award

Recomendation

Issue of P.O

Issue of PR

43


Logistics Management

Preparation of Project Specific Logistic Plan comprising the following:

• Route survey report

• Port of import in country of project.

• Recommended mode of Transport for Materials & Equipment

• Shipment Execution & Monitoring

• Receipt date at site based on the committed dispatch date.

• Selection of Freight Forwarder based on Geographic Location

• Schedule for contract award for LSP / Freight Forwarders

• Progress reporting Freight Forwarder

• Format for overall Progress Report and frequency of updation

L&T has a dedicated Logistics Management Centre & a team of Logistics Specialists

44

CONSTRUCTION

• Establish Site Infrastructure at early stage

• Construction Management

• Progress Monitoring & Control

• Generation of sequential & parallel work-fronts

• Full utilization of SAP, e-Alps, easy-TRACK, MOSS, Spool-gen & Punch-Mon systems

• Resource mobilization & Effective Utilisation

• Parallel working

• Strict HSE Compliance

• Adherence to Quality Standards

• Compliance with Statutory Regulations



Site Infrastructure

• The mobilization phase involves meticulous planning and

establishment of infrastructure to handle the quantum of work

and the challenges. The following is generally planned:

o Project Office with VC facility and hot linked to design and PMT office.

o Site establishments like Consumable Store, Piping storage yard, Labour-

colony with all amenities and hygiene facilities etc.

o Rebar service center, Batching Plants, Carpentry Work shop and P&M

Work shop

o Worker Canteen and Workers Rest Shed at site.

46


CONSTRUCTION EXECUTION

• Early start-up of Soil Investigation

• Participation in constructability study

• Focus on completion of UG works very early

• Prefabrication of Critical Piping away from site

• Continuous monitoring of 100% matching front

• Aligning pre-fabrication of piping with erection fronts

• Hanging platform beneath Pipe-racks for ease of AG

piping erection / other E&I works

• Strict monitoring of RT works to avoid any pile up

• Define hydro-test loops & Process systems in advance

47

REACTOR – ERECTION AT SITE



COMMISSIONING

• Pre-commissioning with objective of “first time right” start-up

• Established work practices

• High emphasis on HSE during pre-commg and commg

• Thorough audit of construction prior to pre-commissioning

• Pre Start-up safety audits

• Inputs to models review, HAZOP studies, P&IDs review, SIL studies etc.

• Accessibility, Operability, Maintainability studies during model reviews

• On time support from vendors

• Leverage from database of learnings from previous projects

• Team of highly experienced Managers, Engineers & Operators

• Project specific training for Engineers

• Provide training to Client’s O&M teams

• Seamless alignment with Client’s O&M teams during commissioning

49


KEY SUCCESS FACTORS

• Customer Delight : On time Completion

• Right person at right place in right time

• Prompt Decision-making

• Optimum Engineering Solutions

• Continuous tracking and monitoring

• Timely Deliveries

• Adherence to Highest Quality Standards

• Implement best HSE Practices for accident Free

Execution

• Risk Management

• IT enablers50

Smooth Execution of a Project requires complete commitment of

OWNER PMC

EPCCLICENSOR


Thank You


DISCLAIMER

THE CONTENTS OF THIS

PRESENTATION BEING DYNAMIC ,

IS SUBJECT TO CHANGE AND

ACCORDINGLY ADEQUATE CARE

MUST BE EXERCISED WHILE

MAKING ANY INFERENCE BASED

ON SAME.

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EPCC Hydrocarbon Downstream L&T 09.01.2014

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