Farjad HasanProject Controls & Risk Manager| Bin Quraya Company Ltd.Saudi Arabia
Can someone tell me how will an engineering project proceed in a petro chemical company? I would like to know the stages and outline of WBS. Also share some of your experience if faced a situation:
1. When your 60% detailed engineering was done but HAZOP was not done.
2. When your engineering contractor was not sharing the progress measurement method for engineering progress.
3. When you had FEED on different older versions standards but you had to do detailed engineering on the latest version of standards, did you re-do the FEED in that case?? Saving Changes...
Answering these question requires a lot of information. It has to do with the situation, your role in the project, status quo, etc. General responses may mislead you since there are a lot of effective factors.
The nature of an engineering project is a little bit different in most of the cases. however, it follows the general rules and procedure of project management. To develop a WBS, you need to gather a lot of technical information. If I were in your shoes, I would definitely try to plan the project from the scratch and tick the completed tasks. It may ensure us that everything is on track and considered. Saving Changes...
RAJESH K LProject Manager, PMP| Bharat Electronics, Bengaluru, IndiaBengaluru, Karnataka, India
the more detailed WBS, will result in better estimate and finallly results in shared responsbility Saving Changes...
KEYULKUMAR DAVEPMP, Six sigma Black belt| ThailandBanchang, Rayong Province, Thailand
Engineering project in petrochemical or manufacturing industry WBS start with all the requirements for the project then decompose function wise it will be much more easier. But controlling is difficult as there are multiple procurement need to be managed. Each one is unique in nature. Saving Changes...
WBS start with all the requirements for the project Saving Changes...
Emilio Reyes-HernandezOwner| ER Projects & Engineering ConsultingNaples, Fl, United States
Three very simple questions, with no easy responses.
I will try to sketch ways to confront these issues in a very general manner. A detailed response would take more than the time and room available in here.
1. When your 60% detailed engineering was done but HAZOP was not done.
- Depending on the size/capacity and complexity(type) of the
specific unit(s) and potential risks of overpressure, fire and
explosion the unit as well, the options might range from a What-if
Analysis, HazId or the need of a full HazOp evaluation. Upon the
requirements, a complete review and revision of the might be
Detail Engineering could be necessary, as a worst case scenario.
Before getting into the 60% detail engineering completion you will
need to have the Issued for Hazop (IFH) documents ready, the
Hazop review performed and the recommendations and
modifications resulting from the Hazop in place.
2. When your engineering contractor was not sharing the progress measurement method for engineering progress.
In my opinion, the Key Progress Indicators(KPI) ought to be
clearly defined in the project documents produced as early as
possible. Ideally, the grounds and general scope of the KPI's
should be in place right after the Project Charter has been
completed and the project Scope of Work (SOW) is prepared, as
part of it.
The DBM most have a definition of the KPI's, at least a preliminary
one to be clearly established in the Design Specification stage
documents. If it was not done in due time, you need to consider
discussing this issue with the EPC company and negotiate with
them, based on the contracts terms; to have it formulated and
agreed upon as a critical priority task to be resolved.
3. When you had FEED on different older versions standards but you had to do detailed engineering on the latest version of standards, did you re-do the FEED in that case??
Unless there was a clear agreement with the client on when all
changes to the standards during the contracting phase,
specifications and other changes to the project will be "frozen",
you might be obliged by contract to implement to those changes
either by revisiting and re-doing the FEED parts no in compliance
with those changes in the standards.
An easier way to resolve this kind of situation would be possible
through Management of Change (MOC) procedures, either
established at or before the beginning of the project work or at the
need for it comes up.
In all these cases and many other instances during the project life a good project planning should be performed talking into account potential scenarios that might at some point during the project execution. become critical
In any case, having a well qualified Project Engineer/Engineering manager as part of the project team as early in the project life as possible would prevent the kind of problems you are referring to, ad many more.
Hope it helps. Otherwise do not hesitate to contact me back, either through this platform or through the contact information shown in my LI profile. Saving Changes...
Vijay SuryavanshiProject Manager - Engineering| RECARO Aircraft SeatingPlantation, Fl, United States
Hi Farjad,
While there is Engineering management involved, it looks like you have outsourced your Engineering work to a contractor. The rules of procurement becomes important then. And I like Emilo answers to each one of your question. These are answered from procurement point of view.
While you outsource the work it is important to give statement of work or scope of work, highlight all milestones, do the project in a phased manner (if you are using waterfall approach) and list deliverables in each phase and you follow a projectized phase approach and work in collaboration with supplier or vendor.
And to me it looks like HAZOP analysis was a part of work that contractor has missed ? Did you mention this in the scope of work. It is always easy to detailed engineering than an analysis (Hazard or Impact analysis or even a system analysis. Requires special skills and no wonder the contractor left it out).
Again for procurement there are different types of contract that are used.
Fixed Price Incentive Fee (FPIF) Although the price is fixed, the seller is offered a performance-based incentive. The incentive can be dependent upon one or more project metrics such as performance, cost, or time.
Fixed Price Award Fee (FPAF) If the performance of the seller exceeds expectations, an additional amount (i.e., 10% of the total price) will be paid to the seller.
Fixed Price Economic Price Adjustment (FPEPA) The fixed price can be re-determined depending on the market pricing rate.
You rating the supplier based on the KPIs is important and make sure the supplier syncs and works with your phases or milestones of the project that you follow internally.
Hope this gives you an idea.
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1 reply by Latha Thamma reddi
Apr 20, 2023 3:26 PM
Latha Thamma reddi
...
Very well explained Vijay, Really appreciated
Saving Changes...
Latha Thamma reddiSr Product and Portfolio Management (Automation Innovation)| DXC TechnologyMckinney, Tx, United States
Apr 11, 2023 4:33 PM
Replying to Vijay Suryavanshi
...
Hi Farjad,
While there is Engineering management involved, it looks like you have outsourced your Engineering work to a contractor. The rules of procurement becomes important then. And I like Emilo answers to each one of your question. These are answered from procurement point of view.
While you outsource the work it is important to give statement of work or scope of work, highlight all milestones, do the project in a phased manner (if you are using waterfall approach) and list deliverables in each phase and you follow a projectized phase approach and work in collaboration with supplier or vendor.
And to me it looks like HAZOP analysis was a part of work that contractor has missed ? Did you mention this in the scope of work. It is always easy to detailed engineering than an analysis (Hazard or Impact analysis or even a system analysis. Requires special skills and no wonder the contractor left it out).
Again for procurement there are different types of contract that are used.
Fixed Price Incentive Fee (FPIF) Although the price is fixed, the seller is offered a performance-based incentive. The incentive can be dependent upon one or more project metrics such as performance, cost, or time.
Fixed Price Award Fee (FPAF) If the performance of the seller exceeds expectations, an additional amount (i.e., 10% of the total price) will be paid to the seller.
Fixed Price Economic Price Adjustment (FPEPA) The fixed price can be re-determined depending on the market pricing rate.
You rating the supplier based on the KPIs is important and make sure the supplier syncs and works with your phases or milestones of the project that you follow internally.
Hope this gives you an idea.
Very well explained Vijay, Really appreciated Saving Changes...
