TQM Study in Royal Commission

of Jubail CEM 515

Purpose of the royal commission

Is to develop, construct and maintain the infrastructure of Jubail-2:

Earth Work, Concrete channels & bridges roads Substations 230/34.5 kV & 115/34.5 kV (SEC) Telecom (STC) pipelines: - Seawater cooling (Marafiq) - Water in/out (Marafiq) - Industrial gas Methane/ Ethane (ARAMCO) - Industrial waste (Marafiq)

Sea water cooling pipeline

Problem statement Lack of Coordination between Royal

Commission and Marafiq for the final acceptance of construction works of Jubail-2 Projects

Effects Delay on close-out date of the

project Excessive submittal review work Punch list items not in the scope of

contract Unfamiliarity with construction

problems Rework of finished work Specifications correspondence

between entities Reject of work already paid/accepted

Pareto

Note: Based on feedback from RC staff involved in the project

Pareto Chart

0

5

10

15

20

25

30

35

Delay

Excess ive subm ittals

Unclear scope

Unfam iliar with cons truction

Rework

Specs correspondance

Reject work

As-planned

Award

Initial Acceptance

Close-out

Project Timeline

Final acceptance

App

rova

l of

proj

ect

Area of concern

As-built

Award

Initial Acceptance

Close-out

Project Timeline Commissioning

Delay

Final acceptance

App

rova

l of

proj

ect

RC flow chartStart

Plan the project

Prepare budget

Start design

Marafiq involvement

Start construction

Handle-over to Marafiq IAMarafiq involvement

Close-out

End

YES

NO

Area where problem is noticed

Problem discussion

START

Contractor complete Milestone &ready for Initial Acceptance (I/A)

FCS &his group

determine if milestoneis complete and

contractor requestis ok

Contractor send letter request for I/A

If the above is acceptedFCS prepare I/A inspection package

A

RC Acceptance teamwill designate team for inspection

RC Acceptance teamwill issue I/A Deficiency List

for the complete scopeFCS will review items and

issue letter to Contractor to completeall I/A deficiencies

When I/A Deficiency completedto the satisfaction of FCS,

a request for re-inspection of thecompleted items is sent

The RC acceptance team will issuethe Initial Acceptance Exception List

(Exception for remaining deficiencies)

A

FCS will recommendInitial Acceptance Certificate

with the exceptions to RC

Contractor to complete allexception items during the

warranty periodIf all I/A exception items are

satisfactory completed and the oneyear warranty finish, the FCS/Contract Administrator will

recommend and issueFinal Acceptance Certificate

to RC approvalAll performance bond and release

of financial issues will be done uponissuance of Final Acceptance

Certificate

INITIAL ACCEPTANCE FLOWCHART

END

Yes

No

RC Acceptance team will contactinvolved future Owner Utility Co.

MARAFIQ

SCECO

POWER& TELECOM

ROADS

Process mapping

Marafiq

RC Construction

RC Engineering

RC IA Team

Contractor

Plan

Review

Review

Design

A/E Design

Review

Award

Construct

Supervise Inspect

Inspect

Inspect

Inspect

Review

Accept

Accept

Initial acceptance requirements

AS-BUILT O&M Manuals Spare parts Encroachment Permit

Warranty Performance bond – cant be 3rd party beneficiary

Change orders Claims

Close-out requirements Technical submittals-who should review

them QC documentation Spare parts O&M Manuals As-built drawings Testing and commissioning-wittiness Final quantities Change orders and claims In-House inspection

Force field analysis

• Contractor wants to finish work

• Finance department stress to close-out the project

• Jubail-2 schedule time

• Upper management monthly reviews

• Staff accomplishment records

• Reputation of the Royal commission

• Old procedures JMP-1975

• NO custodian contractual liabilities

• specification correspondence

• Motivation of staff

• Overload on Marafiq

• Mutual scope clarification

• Warranty/Bond expiry

Cause and effect diagram

Lack of coordination between RC and Marafiq

Contractor procedure RC procedure Marafiq procedure

Contractor people RC people Marafiq people

No tracking system

New staff

No technology involved

No mutual procedureUn familiar to RC

No Motivation

OverloadLack of knowledge

Contractual obligation s

When to review submittals

No Mutual procedure

No quality check

No reporting system

New staff

No Motivation

OverloadLack of knowledge

No Motivation

Lack of knowledge

Not familiar with procedures

Solution Review IA procedure and requirements Involve custodian in analysis design and

all construction phases Recruit more people Assign a contractual obligation to

custodian in order to meet demands Establish Mutual procedure Online mutual courses with Mutual

procedure Motivate people