optimization of startup operations in large construction projects (international airports - saudi...

OPTIMIZATION OF STARTUP OPERATIONS IN LARGE

CONSTRUCTION PROJECTS(INTERNATIONAL AIRPORTS - SAUDI ARABIA)

THESIS DEFENSE

OMRAN ZAIN OMRANKING FAISAL UNIVERSITY

STUDY STRUCTURE OUTLINE

CONCLUSION AND RECOMMENDATIONS

PROGRAM GUIDLINES

FIELD STUDY- QUESTIONNAIRE

INTRODUCTION

FIELD STUDY- STUDY CASES

OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA) BY OMRAN ZAIN OMRAN

DEFINITION OF STARTUP PHASE

The stage by which the tools necessary for

the transition/shift from construction to

operation are provided.


OBJECTIVES OF THE STUDY

To carry out an in depth examination of the startup phase

of construction projects, specifically airports.

To study and analyze the role of the startup phase of

projects in relation to project cost, time, and efficiency.

To examine the startup procedures.

To come up with a comprehensive program or guidelines

that will help people involved in the construction industry.


GENERAL TYPES OF STARTUP

TURNKEYSTARTUP

PHASEDSTARTUP1 2

The choice of either type is dependent on number of factors on which a decision is made.

• Client’s resources

• Size of the project

• Complexity of the project

• Time constraints


The contractor would undertake the design and commission a complete installation until the time when the client would “turn the key” for full operation.

Large systems are handed over to the client systematically throughout the commissioning period. Individual units are tested and rendered operational.

Finish/ Cleanup

SEQUENCE OF STARTUP PHASE EXECUTION

Pre-commissioning Commissioning Initial Operation

System(s) testsunder load

Increase load to meatdesign load

Non-operatingchecks

First equipmentcompletion

Mechanicalcompletion

Constructioncompletion

Startup offacility

Projecttermination


AIRPORT STARTUP MILESTONES

AOT

DEDICATION

COMERCIALOPERATION

STARTSTART

87 %87 %

55 %55 %

80 %80 %

100 %100 %

AORPROCESSSTARTS

O&M CONTRACTS


STARTUP PREVAILING CONSTRAINTS AND REGULATIONS

TIME

MATERIALSAND PEOPLE

MONEY

LOCALREGULATIONS

1 2

43


Systems

AIRPORT OPERATIONAL READINESS(TRIAL OPERATION)

AIRPORT OPERATIONAL READINESS

(DD/ MM/ YYYY)

Operational Conditions

Procedures

Directions

Training

Construction

Evaluation of Facilities/ Procedures/ Training

STARTUP OF OPERATION


FIELD STUDY


REVIEW OF STUDY CASES

EXTENSIVE READING IN THE AREA

• Design/ distribute study questionnaire to practitioners.

• Tabulate and analyze the responses of practitioners.

• Interview practitioners in the local int’l airports .

• Review of study cases from local int’l airports:KAIA, KKIA and KFIA.

• Review of study cases from foreign int’l airports:Munich and Oslo airports.

• Analyze startup procedures implemented in study cases.

• Review of collected literature on startups of industrial projects.

•Review of the collected literature on startups of airport projects.

• Analyze collected literature on startups of airport and industrial projects.



-1-2-3-4-5 +1 +2 +3 +4 +50

Questionnaire Structure

Range of Disagreement(Negative Mean Score)

Range of Agreement(Positive Mean Score)

Neutral orNo Response



0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

PersonalExperience

Vendorstartup

information

On -jobtraining

Operationmanuals

Site visits. In-housetraining

Consultancy Seminars Journalarticles

Question sub-categories

Ra

tin

g A

ve

rag

e

Q.II: How would you rate the following means of learning about startup?

Question Sub-categories Rating Avg.Personal Experience 3.88Vendor startup information 1.68On -job training 3.24Operation manuals 2.92Site visits. 3.84In-house training 2.88Consultancy 2.08Seminars 0.92Journal articles 0.64


Q.IV: Rate each of the following terms as best describing this phase

Question sub-categories Rating Avg.Startup phase 3.56Commissioning phase 2.12Pre-operational phase 2.64Close-out phase -0.92

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

4

Startup phase Commissioning phase Pre-operational phase

Close-out phase


Ra

tin

g A

ve

rag

eFIELD STUDY- QUESTIONNAIRE


FIELD STUDY- QUESTIONNAIREQ.V: Rate each of the following sources of obtaining information about startup

Question Sub-categories Rating Avg.Site visits 3.68Personal interviews 2.64Case study 2.12Literature review 1.92Experience 4.32Questionnaires 0.88

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Site visits Personal interviews Case study Literature review Experience Questionnaires


Ra

tin

g A

ve

rag

e


FIELD STUDY- QUESTIONNAIREQ.VI: How early in the project should startup be discussed?

Question Sub-categories Rating Avg.Planning phase 1.76Design phase 1.4Construction phase (final phase) 3.72Construction phase (first phase) 2.28Feasibility phase -0.4Concept phase -0.84

-2

-1

0

1

2

3

4

Planning phase Design phase Construction phase(final phase)

Construction phase(first phase)

Feasibility phase Concept phase


Ra

tin

g A

ve

rag

e


FIELD STUDY- QUESTIONNAIREQ.VII: How early in the project should startup be introduced?

0

0.5

1

1.5

2

2.5

Planning phase Design phase Procurementphase

Constructionphase (first third

Constructionphase (second

third)

Constructionphase (final third)


Ra

tin

g A

ve

rag

e

Question Sub-categories Rating Avg.

Planning phase 1.6

Design phase 1.48

Procurement phase 1.6

Construction phase (first third 2.32

Construction phase (second third) 2.8

Construction phase (final third) 3.16


FIELD STUDY- QUESTIONNAIREQ.IX: What should be the composition of the startup team (you can select more than one)

Question Sub-categories PercentageOperations 96Engineering group 84Project Construction team 60Construction management group 72Contractors 72Consultant(s) 64Equipment manufacturers 36

0

20

40

60

80

100

120

Operations EngineeringGroup

ProjectConstruction

Team

ConstructionManagement

Group

Contractors Consultant(s) Equipmentmanufacturers


Pe

rce

nt


FIELD STUDY- QUESTIONNAIREQ.X: How early should the operations group get involved in the project?

Question Sub-categories Rating Avg.Design phase 1.92Planning phase 2.56Feasibility phase 0.96Procurement phase -0.08Construction (first third) 1.4Construction (second third) 2.36Construction (final third) 3.12Startup phase 2.88

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

Design phase Planningphase

Feasibilityphase

Procurementphase

Construction(first third)

Construction(second third)

Construction(final third)

Startup phase


Ra

tin

g A

ve

rag

e


FIELD STUDY- QUESTIONNAIREQ.XI: When should the operations group come on site physically?

Question Sub-categories Rating Avg.Construction phase(first third) 0.76Construction phase(second third) 1.92Construction phase(final third) 3.68Startup phase 2.88

0

0.5

1

1.5

2

2.5

3

3.5

4

Construction phase (first third)

Construction phase(second third)

Construction phase(final third)

Startup phase


Ra

tin

g A

ve

rag

e


FIELD STUDY- QUESTIONNAIREQXII: Who do you think are the key players involved in project startup?

Question Sub-categories Rating Avg.Owner as client (Operations) 4.44Engineering group 3.28Project construction team 2.32Construction management group 2.84Equipment manufacturers 0.56Contractors 2.12Consultant(s) 2.24

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Owner as client(Operations)

Engineeringgroup

Projectconstruction

team

Constructionmanagement

group

Equipmentmanufacturers

Contractors Consultant(s)


Ra

tin

g A

ve

rag

e


FIELD STUDY- QUESTIONNAIREQ.XIV: Based on your experience, does startup suffer from the following?

Question Sub-categories Rating AverageSchedule delays/overruns 4Cost overruns 2.88Project frustration/abandonment 1.56Substandard performance 1.2Accidents 0.56

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Schedule delays/overruns Cost overruns Project frustration/abandonment

Substandard performance

Accidents


Ra

tin

g A

ve

rag

e


FIELD STUDY- QUESTIONNAIREQ.XV: What are the key factors for effective startup?

Question Sub-categories Rating Average

Competent startup team 2.04

Effective communication 3.72

Proper coordination 2.88

A formal setup plan & schedule 4.24

Strong project leadership 4.64

Early involvement of operations group 3.8

Adequate human resources 3.8

Knowledge of complex technology 2.84

Safety consciousness 3.12

Contingency plans 3.28

Computerized systems 3.48

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Competent startup team

Effective communication

Proper coordination

A formal startup plan & Schedule

Strongleadership

OperationsInvolvement

AdequateHuman Resources

Knowledge of complex Tech.

Safety consciousness

Contingency plans

Computerized systems


Question Sub-categories Rating Average

Rat

ing

Ave

rag

e


FIELD STUDY- QUESTIONNAIREQXIV: What are the key factors that contribute to ineffective startup?

Question Sub-categories Rating AveragePoor planning & scheduling 4.48Poor coordination among players 4.56Weak commissioning team 4.2Weak project leadership 4.4Unclear responsibility matrix 4.08Friction between protect team 3.24Non-availability of suppliers 2.8Unclear contract wording 2.44

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Poor planning & scheduling

Poor coordinationamong players

Weakcommissioning team

Weak projectleadership

Unclearresponsibility matrix

Friction betweenprotect team

Non-availability ofsuppliers

Unclear contractwording


Ra

tin

g A

ve

rag

e


STUDY CASESSTUDY CASESKING ABDUL- AZIZ INTERNATIONAL AIRPORTKING ABDUL- AZIZ INTERNATIONAL AIRPORTOPERATIONAL READINESS FUNCTIONAL ANDOPERATIONAL READINESS FUNCTIONAL AND

ORGANIZATIONAL CHARTORGANIZATIONAL CHART

DIRECTOR,IAPDIRECTOR,IAP

OPERATIONALREADINESS COMMITTEE

OPERATIONALREADINESS COMMITTEE

TRANSITION TASK FORCE

TECH. COORDINATIONAND SUPPORT

COMMITTEE 80 TRANSITION SCHEDULINGGROUP

IAP/ CM TECHNICALCOORDINATION COMMITTEE

IAP, CM, KAIA CONTRACTORS, GOVT. AGENCIES, AIRLINES, TENANTS, ETC.

OPERATIONS COMMITTEE PROPERTIES COMMITTEEFACILITIES PLANNINGCOMMITTEE

SECURITY COMMITTEE

PROJECT ORGANIZATIONS WITH COORDINATION/ FEEDBACK FUNCTIONS

11


STUDY CASESSTUDY CASESKING KHALID INTERNATIONAL AIRPORTKING KHALID INTERNATIONAL AIRPORTOPERATIONAL READINESS FUNCTIONALOPERATIONAL READINESS FUNCTIONAL

AND ORGANIZATIONAL CHARTAND ORGANIZATIONAL CHART

AIRPORT DIRECTOR GENERAL

OPERATIONAL READINESS COMMITTEEKing Khalid International AirportInternational Airports Projects

Bechtel company & Outside Agencies

KKIA Departments Task Force Director

Planners Schedulers

Project Control GroupCoordinator

King Khalid International AirportStaff

Operations

Properties

Security Support

Facilities Engineering

Management

Maintenance & Utilities

Government Liaison

Project Control

22


STUDY CASESSTUDY CASESKING FAHD INTERNATIONAL AIRPORTKING FAHD INTERNATIONAL AIRPORTOPERATIONAL READINESS FUNCTIONALOPERATIONAL READINESS FUNCTIONAL

AND ORGANIZATIONAL CHARTAND ORGANIZATIONAL CHART

OPERATIONAL READINESS COMMITTEE

Executive Committee

Planners Schedulers

Project Control Group

CertificationTeamwork

Coordination w/ UsersTeamwork

DedicationTeamwork

Administration AffairsTeamwork

Equip. & MaterialsTeamwork

PropertiesTeamwork

OperationsTeamwork

EngineeringTeamwork

33

FacilitiesTeamwork


STUDY CASESSTUDY CASESMUNICH INTERNATIONAL AIRPORTMUNICH INTERNATIONAL AIRPORT

OPERATIONAL READINESS FUNCTIONALOPERATIONAL READINESS FUNCTIONALAND ORGANIZATIONAL CHARTAND ORGANIZATIONAL CHART

Management

Chief TechnicalPlanning

General ProjectManager

OperationalDirector

TechnicalDirector

Planning Execution Start-up

1 2 3 4 5 6 N

Functionalcore processes

Sub-functionalprocesses

Start-upFMG/ agiplan

44


DEVELOPMENT OF PROGRAM GUIDELINES

LITERATUREREVIEW

FIELD STUDY &STUDY CASES

PROGRAMGUIDELINES


PROGRAM GUIDELINES

SIMPLE

PRACTICLE

INEXPENSIVE

FLEXIBLE

1 2

43

CHARACTERISTICS


PROGRAM GUIDELINES

Emphasize on the vital functional areas involved in theperformance of the startup phase.

Define responsibilities and responsible teams toperform the work.

Organize work performed by these teams.

Provide hints on how to enhance the performance ofthe work done.

OBJECTIVES


PROGRAM GUIDELINES

General Guidelines

Planning & Management Guidelines

During & Post Construction Guidelines

Staffing & Training Guidelines

1

2

3

4

STRUCTURE


PROGRAM GUIDELINESG

ener

al

Gui

delin

es1

1. Upper management must give adequate attention to the startup phase.

2. Allocate the required resources for startup.

3. Carefully define and provide the required information for the implementation of activities in startup phase.

4. Plan in advance and enforce the applications of safety regulations and practices.

5. Give careful considerations and enough attention to contractual requirements.

6. Consider the facilities configuration when commissioning systems.

7. Take into consideration the Weather Factors and their impact on performance.


PROGRAM GUIDELINESPl

anni

ng &

Man

agem

ent G

uide

lines

21. Develop a detailed and well-organized plan for the startup phase.

2. It should be clear to all parties that successful startup is always a result of good planning.

3. Carefully define and provide required info. for planning of startup phase .

4. Take into consideration system’s operating requirements & standard practices

5. Make everybody aware of the challenges faced.

6. Do not under estimate challenges faced in the startup phase.

7. Start planning for startup as early as possible.

8. Make sure that the schedule is feasible, reliable, and flexible.

9. Formulate startup schedule to correlate to sys.commissioning sequence .

10. Ample time should be allowed for startup.


PROGRAM GUIDELINES3

Dur

ing

& P

ost

Con

stru

ctio

n G

uide

lines

1. Subsystems should be started up independently.

2. Discriminate between “now” and “later”.

3. Keep documentation current throughout the project’s life cycle and maintain strict version control.

4. Assure availability of permanent utilities when using permanent facilities for construction.

5. Ensure application of value engineering/ management throughout the project.


PROGRAM GUIDELINES4

Staf

fing

&Tr

aini

ng G

uide

lines

1. Ensure early involvement of Startup and operations personnel into the project.

2. Upper management should be careful in selecting the startup team.

3. Shift teams for startup should be taken into consideration.

4. Ensure that staff training programs are planned in advance.


CONCLUSION

It was strongly evident that there is a tangible shortage or lack of It was strongly evident that there is a tangible shortage or lack of information and research on airport projects startup phase locally. information and research on airport projects startup phase locally. This statement was found to be equally true on local and foreign This statement was found to be equally true on local and foreign airports.airports.

Despite some similarities, in concept, in structuring the startup Despite some similarities, in concept, in structuring the startup organizations, no specific and common guidelines on which airports’ organizations, no specific and common guidelines on which airports’ startup procedures were based on in these airports.startup procedures were based on in these airports.

Transition plans were given a significant weight, importance, and Transition plans were given a significant weight, importance, and handled as an integral part of the startup plan In the case of the handled as an integral part of the startup plan In the case of the studied foreign airports. In the case of the studied local airports it was studied foreign airports. In the case of the studied local airports it was treated with significantly less importance.treated with significantly less importance.

Munich International airport hired a German specialized consultant to Munich International airport hired a German specialized consultant to handle the transition stage. The consultant started to prepare the handle the transition stage. The consultant started to prepare the Munich move more than 1½ years prior to the opening. Beside the Munich move more than 1½ years prior to the opening. Beside the transition consultant, 14 different work groups were defined. These transition consultant, 14 different work groups were defined. These work groups had the objective to assure important premises for a work groups had the objective to assure important premises for a smooth transition.smooth transition.

1.1.

2.2.

3.3.

4.4.


CONCLUSION

In the case of local international airports, some regulations were found In the case of local international airports, some regulations were found to dominate the obstacles when planning for startup phase, especially to dominate the obstacles when planning for startup phase, especially when they are not taken into consideration. Such regulations or when they are not taken into consideration. Such regulations or obstacles were:obstacles were:

Implementation of the lowest bidder concept on the Implementation of the lowest bidder concept on the procurement process of materials and parts during startup procurement process of materials and parts during startup phase.phase.

Denial of the provision of Bulk Visas for the hiring of required Denial of the provision of Bulk Visas for the hiring of required foreign personnel for the completion of the startup phase. foreign personnel for the completion of the startup phase.

Denial of the importance in treating startup requirements as a Denial of the importance in treating startup requirements as a special case which needs to be expedited due to the nature of special case which needs to be expedited due to the nature of the startup phase.the startup phase.

Denial of the provision and hiring of specialized consultants in Denial of the provision and hiring of specialized consultants in temporary bases for required specific tasks during startup temporary bases for required specific tasks during startup phase.phase.

5.5.


CONCLUSIONIf no action is taken in response to the increased task uncertainty of a If no action is taken in response to the increased task uncertainty of a startup, additional resources must be provided. The cost of extending the startup, additional resources must be provided. The cost of extending the time allotted for the startup may be the easiest cost to bear. But, it would time allotted for the startup may be the easiest cost to bear. But, it would be less costly to add people and to spend money in ways that would be less costly to add people and to spend money in ways that would reduce the startup time. Some of the ways in which this is done are to:reduce the startup time. Some of the ways in which this is done are to:

Add human resources: Additional technical personnel are made Add human resources: Additional technical personnel are made available, and extra maintenance people may be kept on as well. available, and extra maintenance people may be kept on as well.

Add material resources: Extra spare parts may be kept on hand, Add material resources: Extra spare parts may be kept on hand, along with complete units of critical pieces of equipment.along with complete units of critical pieces of equipment.

Add money: Budgetary restrictions and controls may be relaxed: Add money: Budgetary restrictions and controls may be relaxed: procurement procedures may be streamlined and simplified so that procurement procedures may be streamlined and simplified so that operating and technical personnel may quickly order and obtain operating and technical personnel may quickly order and obtain critically needed materials.critically needed materials.

If all else fails, the startup will simply take longer to complete, schedules If all else fails, the startup will simply take longer to complete, schedules will not be met. Time is the resource of last resort, and the one that will not be met. Time is the resource of last resort, and the one that requires the least planning and creativity to make available.requires the least planning and creativity to make available.

6.6.


CONCLUSION

In the case of local international airports, the utilization of experienced In the case of local international airports, the utilization of experienced personnel within the organization, from other in-Kingdom airports, is personnel within the organization, from other in-Kingdom airports, is not a common practice.not a common practice.

Delays, postponement and slippage in the startup schedules result in Delays, postponement and slippage in the startup schedules result in shortening the lifetime or even voiding the contractor warrantees shortening the lifetime or even voiding the contractor warrantees provided as part of their contractual requirements and deliverables.provided as part of their contractual requirements and deliverables.8.8.

7.7.


RECOMENDATIONS

1.1.

2.2.

3.3.

4.4.

5.5.

Explore in depth and further study the startup phase procedures and Explore in depth and further study the startup phase procedures and operations of other public projects in the Kingdom of Saudi Arabia.operations of other public projects in the Kingdom of Saudi Arabia.

Documentation for startup phase guidelines and procedures to be Documentation for startup phase guidelines and procedures to be formatted and saved in proper format i.e. hard copies, electronic formatted and saved in proper format i.e. hard copies, electronic copies, etc. and make them accessible to planners and professionals copies, etc. and make them accessible to planners and professionals for reference.for reference.

Develop training courses and workshop sessions on startup phase Develop training courses and workshop sessions on startup phase planning, practices, challenges, etc. for planners and professionals planning, practices, challenges, etc. for planners and professionals in order to enhance perception and decision making capabilities in in order to enhance perception and decision making capabilities in this field.this field.

Allocate funds to local universities to adapt researches and studies Allocate funds to local universities to adapt researches and studies on startup operations and practices in the Kingdom of Saudi Arabia.on startup operations and practices in the Kingdom of Saudi Arabia.

Develop checklists on startup phase planning and procedures for the Develop checklists on startup phase planning and procedures for the use of the government and private sectors projects in the Kingdom use of the government and private sectors projects in the Kingdom of Saudi Arabia.of Saudi Arabia.


OPTIMIZATION OF STARTUP OPERATIONS IN LARGE OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTSCONSTRUCTION PROJECTS

(INTERNATIONAL AIRPORTS - SAUDI ARABIA)(INTERNATIONAL AIRPORTS - SAUDI ARABIA)

THANK YOUTHANK YOU

optimization of startup operations in large construction projects (international airports - saudi...

Documents

omran zain omran slide

startup procedures

startup phase of projects

startup prevailing constraints

construction industry

large systems

study questionnaire

project complexity