mitigating risks for large-scale projects

7/28/2019 Mitigating Risks for Large-Scale Projects

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March 26, 2013 | Author

Confidential | Copyright L&T IES

Mitigating Risksfor

Large Scale ProjectsInvolvingMultinational Collaborations

Speaker :

Pankaj Shah


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March 26, 2013 | 2Confidential | Copyright L&T IES

Agenda

About L&T - IES

Modularization

Risk Management

MNC Engagement

Challenges, Risks & Mitigation Plans


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Preferred Engineering Partnersfor 15 of our Top 20 Global clients

153 Strategic relationships and 12JVs with global leaders

Asias Fabulous 50 Award Forbes 2008

Indias Best Managed

Company BT

Amongst Indias Top 5

companies in theprivate sector

#1 Integrated Engineering Service

Provider ESO Black Book 2008

Asias Leading Engineering

and Construction Company

IT &Technology

Services

HeavyEngineering

Electrical &Electronics

Machinery& Industrial

ProductsConstruction

E&CProjects

LARSEN & TOUBRO LIMITED

US$ 13.7 Billion Engineering & TechnologyConglomerate

Organizing 6 Business Groups

Has been in Business

over Seven (7) decades

About L&T - IES


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About L&T - IES

Engineering & ConstructionElectrical &

Electronics

Machinery &

Industrial Products

IT & Engineering

Services

Finance &

HR

Chairman and Managing Director

Heavy Engg.E&C ProjectsConstruction

Buildings and

factories sector

Transportation &

Infrastructure Sector

Hydel & Nuclear

Power Sector

Industrial Projects &

utilities Sector

Hydrocarbons &

power Sector

Power Transmission

& Distribution Sector

Hydrocarbon

sector

Power Sector

Cement & Mineral

Projects

Process plant

equipment

business units

Defense, Nuclear& Aerospace

equipment

Ship-Building

Electrical Standard

Products

Electrical Systems &

Equipment

Medical Equipment

&

Systems

Metering &

Protection systems

Control &

Automation

Petroleum

Dispensing

pumps & Systems

Industrial Machinery

for Paper, Steel, Bulk

Material

Industrial Valves

Rubber Processing

Machinery

Welding

Consumables

Industrial Products

Construction

equipment

Larsen & Toubro

Infotech Limited

- Manufacturing

- Banking & Securities- Insurance

- Communications

- Utilities

Integrated

Engineering Services

(IES)

Mechanical Design

Engg. Solutions

Embedded Systems

& Solutions

Process

Cluster


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Sourcing & Costing Engineering

Technical Publication

Engineering Process Outsourcing

Mechanical Engineering Electrical/Electronics Engineering

Engineering Analysis (FEA/CFD)

CAD Automation & Customization

Application Software Development

Software Testing & Test Automation

Manufacturing Engineering

Plant Engineering (Process,

Mechanical, Utility, Packaging,

CSA, PCIS)

Asset Information Management

Construction Engineering

L&T Integrated Engineering Services : a snap shot

Truck & Off HighwayIndustrial Products &

Machines

Aerospace & AutomotiveProcess Vertical CPG,

Chemical, Metal & Minerals,etc.

Consumer Electronics &

Medical Devices

INDUSTRY SEGMENTS

SERVICE OFFERINGS

Product Engineering Process Engineering Other Services


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Agenda

About L&T - IES

Modularization

Risk Management

MNC Engagement



7/21March 26, 2013 | 7Confidential | Copyright L&T IES

Project Type Implementation When

Off-Shore (Oil & Gas) Mandatory Always

On-Shore (Oil & Gas) Optional Cost Savings

Shorter Schedule

On-Shore (CPG)Preferred

Global Roll Out

Common Engineering Standards

Re-Application Advantage

Time to Market

Large Process Plants Optional

Cost

Quality

Time to Market

Imperatives of Modularization



Agenda

About L&T - IES

Modularization

Risk Management

MNC Engagement




Risk Management

IdentifyRisks

Evaluate,Categorize, and

PrioritizeRisks

Identify and

Analyze Risks

DevelopRisk

MitigationPlans

ImplementRisk

Mitigation

Plans

Mitigate Risks

Determine

RiskSourcesand

Categories

DefineRiskParameters

Prepare for Risk Management

Establish

a RiskManagement

Strategy

Budget/cost risk

Schedule Risk

Performance Risk

Severity DeterminationNegligible (1) to Catastrophic (4)

Risk ProbabilityFrequent (A) to Almost Impossible (F)



Strategies for Mitigation

Changing or lowering the requirements

while still meeting the users needs

Avoidance

Reduce

M

inimizetherisksby

insur

ance/forwardcoveretc.

Watching & periodically transfer the risk

To stake other holders

Transfer

A

cceptance

Acknowle

dgementofthe

riskbut

not

takinganyactio

n



Agenda

About L&T - IES

Modularization

Risk Management

MNC Engagement




TechnologySupplier

Supplier - 3

Supplier - 2

Supplier - 1

EU - 1

EU - 2 EU - 3

EU - 4

SkidManufacturer

Global Roll OutLeader

End Users (EU)

EngineeringService Provider

MNC Engagement Model



TechnologySupplier

Common Services

EngineeringService Provider

End User (EU)

Supplier - 1

Module 1Fabricator

Supplier - 2

Supplier - 3 Supplier - 1

Module 2Fabricator

Supplier - 2

Supplier - 3 Supplier - 1

Module 3Fabricator

Supplier - 2

Supplier - 3




Europe

NA

APAC

ASIA

End UserClient PMC DEC




Agenda

About L&T - IES

Modularization

Risk Management

MNC Engagement



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Concurrent

Engineering

Large Scale Projects

Involving Multi

National

Collaboration

Project

Management &

Procurement

Schedule & Cost

Control

Expectation

Management

Cultural Shocks/

Building Trust

Effective

Communication



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Concurrent Engineering

Potential&Feasibility Study

Job-siteLogistics Survey

Constructability

Studies

ModuleDesign Basis

Plot - Plan&

LayoutEngineering

Micro - LevelEngineeringDetailing

& Documentation

Fabrication

Plan

Module Handling&Shipping Plan

Job-site Erection&Installation PlanCivil &

Structural

Piping

Engineering

EquipmentDesign

Electrical &Instrum.

MODULAR

ENGINEERING



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Layout requirements & constraints

Vendor inputs and

constructability Study

Supplier Selection and Ordering

Vendor interface andmodule layout finalization

Early Manufacture and supply

of equipment to Module yard

Installation of equipment in module

Subsequent Module Assembly work

Installation

Typ ica l

P r o c u r e m e n t

C y c l e

Material

Requisition

and Offer Review

OrderPlacement

Supplier

Drawing

Review

Manufacturing

Inspection

DispatchLogistics

Need to finalize equipment specifications and design atearly stage of the project

Impact of equipment design change on module layout andconstructability

Impact of equipment delivery on schedule of moduleassembly, module supply and site installation

Critical Procurement Aspects

Criticality of Procurement in Modularization Projects

Eff ti C i ti A t M lti N ti l


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Effective Communication Amongst Multi-NationalCollaborators

Kick-Off

Meeting

PeriodicProject

ProgressMeetings

DCRs, NCRs As-built

Project

Review StageGates

Review at

FabricationStage

Testing Assly.Validation Project Close Out

Detail Engineering

Value-Chain EnhancingServices

LogisticsRe-visit

Engineering postorder placement

Specialized Engineering

Project Execution -Enabling

Weekly update/review meetings

Change management issues

Coordination with plant schedules

Identify plant representatives

Design review process

Design checking process

Communication flow

Conflict resolution

Resource management

Specific construction standards pertaining to a region

Stamp of authentication on construction drawings


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Logistics Related

Upto Site

InsidePlant

Route Survey

Selection ofMode ofTransportation

Road

Rail

Sea / InlandWater

Air

Alternativesolutions for

Transportation

Delivery of Equipmentin Single Piece/

Sections

Clubbing ofEquipment


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March 26 2013 | 21Confidential | Copyright L&T IES

mitigating risks for large-scale projects

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