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Program & Batch: PGDM 2013-2015

Term: Term V

Course Name: Project Management

Name of the faculty: Dr. V.K. Gupta

Topic/ Title : Installation of Boiler in a gas based power plant

Original

or Revised Write-up:

Original

Section AGroup Number: 1

Contact No. and emailof Group Coordinator:

7840083956ft13krishnakumargupta@imt.ac.in

Group Members: Sl. Roll No. Name1 1301-100 Krishna Kumar Gupta2 1301-399 Sachin Jaiswal3 1301-108 MVS Srikanth4 1301-317 Ankur Sharma5 1301-332 Debanjan Sarkar6 1301-018 Amit Kumar Swain7 1301-438 Vineet P. Maniar

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Table of ContentsIntroduction .............................................................................................................................. 3

Aim of the project .................................................................................................................... 3

Project Scope ............................................................................................................................ 3

Work Breakdown Structure (WBS) ....................................................................................... 4

Project Schedule ....................................................................................................................... 5

Gantt chart ............................................................................................................................... 6

Network diagram ..................................................................................................................... 7

Quality Assurance & Control ................................................................................................. 8

Communications planning ...................................................................................................... 9

Organization Structure ......................................................................................................... 12

Health, Safety and Environment (HSE) ............................................................................... 14

Risk Identification .................................................................................................................. 15

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IntroductionA Boiler is used to produce steam which further drive the steam turbine which in turn

produce power. The input to boiler is water and heat.

Aim of the projectOverall scope includes engineering, procurement, construction and commissioning of238MW gas based power plant for Naphtha cracker unit of IOC Ltd at Panipat, Haryana. The

power plant consists of following:

- 5x 25MW gas turbines- 5 x 95tph Heat recovery steam generator- 2 x 405tph boiler- 3 x 38.8MW steam turbine

1 no of boiler has been taken for study for this project.

Project ScopeObjective

The scope of this project is to design, engineer, manufacture, inspect, test and supply ofBoiler complete with all the accessories. The project should be completed within 16 monthsat a cost not to exceed XYZ.

Technical requirements

The boiler should meet the following technical specifications

Description Unit Max RateFlow TPH 406.5Pressure Bar 131Temperature Degree centigrade 529

The following latest edition codes, standards should be used in the entire process of the boiler

Design, Constructing, Inspection andTesting

IBR

Materials IBR/ASMEPerformance testing ASME PTC 4.1

The boiler shall be completed in all respect and any items not covered in the specifications but essential for proper installation of the boiler shall be included by the manufacturer. Allthe applicable safety codes and national codes as per latest IBR guide lines shall be followed

by manufacturer while designing, manufacturer and installation of the boiler. Noise levelshall be restricted to 88 DBA at 1 mtr from the outer surface of the boiler.

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Milestones

Following are the major milestones of the project

1. Release of GA2. Release of civil and structural Drawing3. Release of Mechanical and Piping drawing4. Release of Instrument and Electrical drawing5. Completion of procurement6. Completion of civil activity at site7. Completion of structure work at site8. Completion of Hydro test at site9. Completion of instrument and electrical work10. Commissioning of boiler11. Completion of performance run

Work Breakdown Structure (WBS)

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Project Schedule

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Gantt chart

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Network diagram

Critical Path:

Order - Release of Boiler Piling Layout - Release of Boiler GA - Preparation of Technical Specification - Piling for Boiler - BoilerFoundation Erection Hydro test - Burner Commissioning - Ready for Steam generation

In activity IDs: 1 2 3 4 5 6 7 8 12 18

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Quality Assurance & ControlTo ensure the required quality for the boiler QAP (Quality Assurance plan) was prepared.Separate QAP was prepared for each and every equipment (Fan, Motor, Pump etc.) and parts(Pipe, Tube, Instrument etc.). QAP has all the details about the different manufacturing stages

of that part. For each stage checks are required as per ASME (American Society andMechanical Engineers) and IBR (Indian Boiler Regulation). In the QAP these checks arementioned in front of every manufacturing activity. These checks was performed by vendor,and witnessed by client, customer, TPIA, and consultant as per agreed during award ofcontract. Only after due clearance given by the respective agency the material move for next

production stage.

Following agencies has involved in witnessing the quality of the material at vendor place -

1. Customer In this case customer was Larsen & Toubro ltd. In the QAP it was clearlymentioned that at which stage inspection by customer is required. Vendor raises the

inspection call to customer for inspection, once the material become ready forinspection as per QAP. Quality engineer from customer visit the vendor place andwitness the test as per requirement of QAP. If the performance of the test is as per therequirement the material is allowed to go for next stage of production.

2. Third Party inspection Agency (TPIA) To ensure the proper quality client insistfor third party inspection. As third party being the neutral agency ends all the doubtsfor customer being favourable towards the vendor for early dispatching of the materialto the site. This TPIA has appointed jointly by client and customer. Customer raisedthe inspection call after getting the same from vendor and subsequently engineer from

TPIA visit the vendor place and witness the test.

3. Client/consultant sometimes in case of critical equipment client send his quality person to the vendor place to witness the test.

All the above mentioned quality checks requirement at different stage ofmanufacturing at vendor place is clearly mentioned in the QAP. Only after dueclearance given by involved agency the material move to next stage of production. If,and defect has found during inspection a defect report has prepared and submit tocustomer for further action.

Quality at Site

To ensure the quality at site separate QAP for all the erection activities has prepared as perrequirements of ASME codes and IBR. After that these QAP was approved by the clientappointed consultant. These QAP was rigorously followed during the erection at the site.Consultant/client witness all the test as per QAP. Only after satisfactory performance erectionactivity moves to next stage.

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Communications planningThe entire process involves sizeable communication between various stakeholders viz.client, vendors, and consultant as well as between various departments involved. To ensure asmooth communication process between all stakeholders and that the project is not hampered

in case an employee involved with the project, the following channels are used:1. Centralized system t -bits for communication:

- The company has a centralized system called t - bits which is used for allcommunication purposes. All concerned parties have to compulsorily register on thissystem as the future payments will be linked to the ID that will be created onregistration.

- All vendors, client, consultant as well as the departments involved in the project willhave to register and get an ID.

- There is no cap on the number of IDs that can be created for a single party but the payment will also be relative to the IDs created. For example, if a vendor decides toregister under 10 different identities the payment to that vendor would be dividedamong those 10 different IDs.

- The t-bits system does not have restrictions on the number of IDs that can be created per party.

- The ID creation has to be done as soon as the parties start working on the project.- Once the ID has been created, all communication between the parties will have the

parties ID and each communication mail will have a reference number. - Also all the communication has to pass through the t-bits system and not anywhere

else.- The reference number thus created will help to locate the file for future reference.- By having such a system in place, no document related to the project like blue prints,

pipe drawings and so on is lost and it also helps to quickly locate the files in the servereven by people who were not initially associated with the project.

- The t-bits system ensures transparency and prevents data loss by storing all the datarelated to the project on a single server under a single file related to the project.

2. Storage of data- All communication regarding the project including documents, drawings and other

material is stored for future reference as explained earlier.- For this purpose, the data is stored on a central server.- The server has a partition to store the information related to the entire project.- Each project has a space named after it with all the data related to it. For example

boiler installation project at site X would be named as Boiler_X. - But since this server contains many sensitive data as well, there are varying levels of

access to the server.- For example, an engineer would only have access to the drawings and not to the

purchase orders while the head of the company would have access to everything fromthe drawings to the costing of the project. In short access for lower level employees islimited related to only their work.

- Storing the data on the centralized server serves two purposes:

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i. It helps create a database which can be accessed later and in no time.ii. The data can be accessed from anywhere across the globe. This helps to solve

problems quickly and take critical decisions by the higher authority in case theneed be. For example if the project requires urgent approval based on someinput by the consultant, the higher management sitting in the corporateheadquarters can see the communication and the justification and decideaccordingly.

3. Use of SAP:- For the purpose of procurement from vendors, purchase orders have to be released as

a confirmation to the vendor.- This is done with the use of SAP software- In SAP the purchase manager or the procurement manager has the right to raise the

purchase order in which the vendors name, ID and other details will be mentioned.- As soon as the PO is raised the finance department will get an intimation to block the

requisite amount for payment to the vendor based on the credit terms.- In case of foreign vendors, this is useful as payments are made through Letters of

Credit (LCs) and LC can be opened only on the basis of PO which acts as a surety ofthe order being placed.

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The entire communication process can be explained via a flow chart as below:

T-bitssystem

Client Vendor Consultant Department

Unique ID

Unique ID Unique ID

Unique ID

Communication(with reference

no.)

Server

Stored on

Accessible for reference

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Organization StructureLarsen & Toubro ltd has following capability centres for execution of various projects.

1. Engineering capability centre - This capability centre has following separate teamsI. Civil engineering

II. Structure engineeringIII. Piping engineeringIV. Rotary EquipmentV. Control and Instrument engineering

VI. Electrical engineeringVII. Project management

This department takes care of engineering activities of all the projects. Separate

manpower has been transferred into the project as per the requirement from all the divisions.They exclusively work only on that project until completion of that project. Every departmenthas one head who monitor the progress of all the project work pertaining to their department.

2. Quality capability centre This department takes care quality related aspects of allthe projects from bidding stage to handing over the project to customer. This centre

prepare all the quality related documents like QAP, Test procedure, NDT etc.

3. Procurement Capability Centre This department involves in procuring thematerial for the projects. They first invite bids from different vendors as per thetechnical specifications and later forward them to engineering department. Once the

bid meet all the technical requirements, vendor has been asked for submitting thecommercial bid. After that negotiation with vendor happens and purchase Order (PO)has been released to vendor.

4. Execution Capability Centre The primarily work of this department is at site. Thusdepartment takes care all the erection work at site from scratch to handling over the

plant to customer. Once the project has been awarded, this department become activeand start civil work as and when drawing got released from engineering department.Subsequently this department send manpower to site as per release of drawing andreceipt of material at site.

5. Commissioning Capability Centre This capability centre does all thecommissioning related work. First they made commissioning procedure for all therequirement and then get them approved from client/consultant. This centre send themanpower to site after erection activity gets over. A handing over protocol has beensigned by commissioning team with erection team. This protocol formerly announcethat erection of that particular equipment has been completed and is ready forcommissioning.

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6. Contract Capability Centre This centre prepares the billing break up in consultantwith client/consultant. They raise the monthly invoices to client as per the billing

break up. This invoice consist of 2 types of bills 1) For site erection 2) for materialwhich has receipt at site.

7. Planning Capability Centre This department does planning and scheduling of allthe projects in consultation with all the other department. As every project beingunique in certain aspect hence, different planning and scheduling is required for every

project.

Larsen & Toubro ltd followed Matrix arrangement for execution of projects. Once the projecthas been awarded a separate task force has been formed for that project. A separate cost codehas also been created for all the finance activity of that project. For every project a projectdirector and project manager has been appointed. From all the above mentioned capabilitycentres manpower has been shifted to that task force as per the requirement of that project.This manpower reports to the head of their respective capability centre but at the same timealso report to the project manager and project director of that project. The head of thecapability centres are equally responsible with the task force for completion of the projectwith in time. Project Director has all the power to take the decisions of the project. When andhow much manpower is required is decides by project director. He can ask for any number ofmanpower for that project from respective capability centre. Also when to release themanpower is decided by project director only.

Below is the organization structure for this project:

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Health, Safety and Environment (HSE)HSE department is responsible for all the safety related activities at site. Their primarilyresponsibility is to ensure proper safety environment at site. At site plenty of activitieshappens simultaneously which involves manpower, cranes, earthmovers and other equipmenthence, it becomes very necessary to follow proper safety norm to prevent any loss ofmanpower or injury.

Following are the main safety precautions followed at site.

1. Safety shoes (specially made for site work) has to be wear compulsorily by all theengineers and worker while working or roaming at site

2. Safety Helmet has to be wear during work or roaming inside the construction area3. Safety glasses during storm wind4. Safety belt while working on height5. Safety meeting among workers were organized on regular basis in different groups to

make workers educate about safety6. To encourage workers to follow safety norms awards has been given to them for

following safety norms7. For working at height and inside the furnace safety permit has to be taken from HSE

before start of the work8. Strict penalty to be imposed on the contractor for violating the safety norms.9. Safety slogans and posters were put all around the site to make workers aware about

safety10. Different kind of permit i.e. welding, NDT test etc. has to be taken from HSE

department before commencement of the work.

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- Such events cannot be forecasted beforehand and the only solution is to sort outthe matter at the earliest.

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3. Truck Operators Strike - This is another strike that can cause huge delay.- This is because around 60% of the project weightage is that of materials. Hence

the materials should reach the site on time.- But events like a nationwide strike of truck drivers leads to a delay.

4. Unavailability of resources - There are certain resources which need to be made available by clients.- But unforeseen circumstances at the clients end will lead to a delay in the project.

This cannot be predicted beforehand.

5. Accident- Accidents like collision, fire, and injury to the workers present on site can also

delay the project.

6. Financial Risk - There are various instances when the cost of the project shoots up drastically.

This is known as cost overruns.- Cost overruns may be due to inflation or if the material is imported, then currency

fluctuations.- The second case can be taken care of by hedging your payments in case the local

currency is expected to depreciate.