115511 shell global solution - flawless project delivery program
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Shell Global Solution
Flawless Project Delivery Program
Wolfgang PROBST, Shell Global Solutions - Malaysia
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Agenda
1.) Introduction of the Presenter
2.) What is Flawless –What are Flaws ?
3.) Consequences – What can go wrong ?
4.) Typical Flaws
5.) When to do What - Front-End-Loading?6.) Plant Performance –Typical vs. Flawless
7.) Implementation Sequence
8.) How to start –The 11 Q’s
9.) Flawlist Methodology
10.) Generic Flawless Delivery Road Map
11.)Elements of Q-Assurance Plan
12.)Q-Captains Action
13.) Generic Q-Captain Road Map
14.) Flawless Delivery Q-Assurance Tool
15.) Conclusion
16.) Where it went right
17.) Sakhalin Energy –as an example
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Introduction of Presenter
Introduction of the Presenter:
Wolfgang PROBST
Shell Global Solutions (Malaysia ) Snd.Bhd. – Kuala Lumpur
Operations and Asset Management Consultant
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What is Flawless ? – What are Flaws ?
All projects have “flaws” (Organisation, People, Assets)
Most flaws present themselves in Start-Up Phase (on critical path)
Many flaws are similar and repeats of other projects
The effect of flaws results in• Culmination of delays
• Increased risk for failures with high severity impact
• loss of production, HSE, business, reputation
DevelopMitigation
Recoverymeasures
Barriers
AssessRisk
IdentifyFlaws
DevelopMitigation
Recoverymeasures
Barriers
AssessRisk
IdentifyFlaws
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Consequences – What can go wrong:
Avoiding problems:
Chemicals complex, cleanliness problems – rework and production losses >$30 million
Chemicals complex, prototype effluent water handling – repairs($3 million), production loss >$20 million and additional operating costs (> $2 million per
month) Refinery, start-up delays caused by instrumentation problems – production losses >>$60
million
Refinery, inadequate cleaning followed by wrongpreservation – rework and production losses(delay) worth >$100 million
Improving on performance:
In addition: Structuring the work-processes: time-saving typically more than one month, worth>30 million US$
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Typical Flaws:
Leaking flanges/valves, gasket failures, wrong or no gaskets, misaligned flanges,cross contamination of liquids,
Blocked fine bores…filters, burner tips, instrument tappings catalyst beds,
Non functional systems, equipment, instrumentation, components
Poor or in-operability of systems, equipment….many alarms, trips etc
Incidents with HSE consequences
Non recognition ofnew technology, new equipment, new components
Non recognition ofcomplex systems requiring significant organisational input etc
Lack of sequenced testing of components, equipment systems, units
Inexperienced organisation or inexperience on new unit/system/equipment
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When to do What ….. Front-End-Loading:
More than50%of flaws originate from the development phases.
Resolution clearly requires back integration of these flaws into
early project phases….lessons learned. Clearly if these flaws remain until last project phases then
significant delay and cost will be the result.
45%
Det Eng/Proc/ConstrEPC
40%
PSPS
10%
Comm/SUCSU
5%
Scout/BOD/BDP
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When to do What ….. Front-End-Loading:
100% 100%
OIP/FPD focus needed in
the project phases with
highest influence and
impact
OIP/FPD focus needed in
the project phases with
highest influence and
impact
Scouting BOD/BDP BDEP/PS EPC CSU
Progress
Cost of changes
Influence
over cost
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When to do What ….. Front-End-Loading:
Good project definition and execution
Good project definition and poor project execution
Poor project definition and good project execution
Poor project definition and poor project execution
A
B
C
D
A
B
C
D
Poor definition
Good definition
Poor execution
Good execution
Poor execution
Good execution
FRONT-END DEVELOPMENT
V a
l u e
VALUESCOUTING REALISATION95% costs5% costs
BOD/BDP EPCSCOUTING CSUBDEP/PS
B
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Plant Performance – Typical vs. Flawless
Reputation
HSE
$$$
Reputation
HSE
$$$
P l a n t P e r f o r m a n c e
CSU - first year(s) of operation
Flawless Project Delivery and Operation
Typical Plant
Performance
Curve over time
“Target date for production”
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Implementation Sequence:
Scouting(Identify / Assess)
1. Introduce Flawless in owner org.
FED1(Select)
FED 2/3 (EarlyDefine - Define)
Detailed Eng.(Execute)
Procurement
(Execute)
Construction(Execute)
Commissioning &SU (Operate)
2. Roll out Flawless in owner & FEED contr org.
3. Roll out Flawless in owner & FEED contr org.
4. Roll out Flawless in E&P Organisation
5. Roll out Flawless in Procurement
6. Roll out Flawless in Construction
7. Execute Flawless in Commissioning & SU
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How to start …… The 11 Q’s
K P I
Tightness
Cleanliness
Integrity
Operability & Maint
HSE in transition
Novelty
Complexity
Testing
Competency&Experience
Coinciding Events
S t r u c t u r e
R & R
C o m p .
I n f o
D a t a
A s s e t R e l a t e d
S c h e d u l e , P r o j e c t m a n a g e m e n t
Business Controls
Information & Data
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Generic Flawless Delivery Road Map:
Agree Operations,
Maintenance and
CSU philosophy’s
Set /Agree
Performance
Expectations
Identify risks
& Flaws
Organise
Mitigation or
Back-up
Track
Implementation
on measures
taken
Correct
and
Improve
Apply
Practices
Worth
replicating
Key Performance Area’s
KPI’s, “Cook-book”.
Generic Flaws listingNovelty/Complexity workshops
Mitigation Plans, Q-cases
Best Practices (e.g.
Systemisation),
Lead indicators
Health checks,
Measurement Tools.
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Elements of the Q Assurance Plan:
Strategypolicy & objectives
Organise
Set standards
Prepare
Control
Monitor
preparations
Executeplans
Monitor
execution
Final review
Correct
Improvenext project
Flawless Start-up policy
Operations Implementation Planning
Key success areas 11 Q’s
Project objectives and targets
Key Quality Area - KPI
Organisational structure
Clear R&R Competence, Experience, Training
Documentation and its control
Task breakdown (procedures/work instructions)
Job aids, checklists, critical tools and information
QA/QC controls and measurement points Test protocols
Test and inspection points (number of tests
and inspections per item, sample size..)
Test and inspection criteria (for both performing
the activity/task and acceptance/rejection of)
Allowed rejection rates
Rejection rate for up scaling of action
T y p i c a l c o n t r o l s
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Q-captains action:Q Roadmap
Project KPIs
FPD -area
Flaw database per Q-Area
FPD per Q-area
Actions for Q-captain-
FPD LIs per Q-Area
FPD KPIs per Q-Area
Top-Down: KPIs translated into Q-Area LIs with action plan to keephealthy
Bottom-Up: Detailed flaws to be
mitigated
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Conclusion:
Each project phase can produce flaws
If these flaws are not identified within the project phase in which they occurthen they get passed onto the next project phase….they may or may not becaptured in the next phase
If flaws remain until the CSU project phase then schedule delays andadditional rectification costs will be incurred. In many cases these will besignificant
Delays = lost revenue = not recoverable for project economics
The best method of identifying these flaws is from past projectsand lessonslearned i.e. backward integration into the project phases
Clearly a structured process is needed to assist in identifying and mitigating
against these flaws.
Q Roadmap
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Results – Where it went right:
PER+, Shell Pernis, refinery expansion (Hydrocracker, Gasification, Powerplant)
Shell Chemicals, Styrene Monomer and Propylene Oxide manufacturing,Moerdijk (Netherlands) and Singapore
Shell Chemicals, Nanhai project (China) – new petrochemical complex
Malampaya – Shell project, Philippines, onshore gas plant
Athabasca Oil Sands, Canada – extension of the Refinery to process
PDO (Oman), Harweel and Qarn Alam, Gas processing facil ities
Sakhalin Energy Russia( OPF, BS2, LNG, Pipelines, All offshore Installations )
LNG projects (Oman, Nigeria, Australia, Russia)
Sabic (Saudi Arabia): United (Jubail), Yansab(Yanbu), Saudi Kayan (Jubail), Ar
Razi (Jubail), all petrochemicals
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Sakhalin Energy – As an Example
Why has it been such a success:
1.) Competent Assessment
2.) Management Commitment
3.) Sponsors Funding
4.) Superiors Support
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Sakhalin Energy – As an Example
SEIC OPF “ Flawless” Team:
Superiors: Wim Stel / David DeJong ( Site Manager )
Sponsors: Karl Johnson ( Dty.Commissioning Manager ) + Wolfgang Probst ( Dty Site Manager )
Execution: SEIC OPF Commissioning Team + Commissioning Management
Assessment: Peter van Brussel / Marco Houterman –Shell Global Solutions Malaysia
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The End: