CHAPTER IAim, objectives and feasibility of the dissertation
1. Introduction
The Kingdom of Saudi Arabia relies on two fossil sources to support its economy in
the long term: oil and gas. One of the most powerful organizations in this sector is
Saudi Aramco, which owns and runs a quite broad network of refineries and
distribution facilities. Saudi Aramco controls the oil reserves that exceed 266 billion
barrels per year (OPEC, 2014). Saudi Aramco plans to be the second world largest
exporter of refined oil. In order to achieve this target building new refineries will be
constructed to fulfill such growing demands in the field. It is important to clarify that
all of these projects will be sponsored by the Aramco project management department
(PMT), as professionals are responsible for the execution of different significant
stages of the process in order to deliver realistic and adequate outcomes. A major
phase will be explored that is the project close out or the termination phase, as it
refers to pre-commissioning, commissioning and start-up elements of exploring
certain aspects.
Basically there are different ways to close out or terminate a project as mentioned by
Meredith & Mantel (2009) following four types of termination:-
1. Extinction
2. Addition
3. Integration
4. Starvation
Closing out or termination a project by extinction means that project has been
successfully completed and achieved its goals: the new product has been developed
and handed over to the client; or the plant been built and accepted by its final end user
commissioned and it is running and producing its final product. Projects terminated
by this way might be successful or unsuccessful. Projects can be terminated by
institutionalizing it as a formal part of the organization that is defines what called
project termination by addition when an in-house project carried out by a project team
1
in the favor of the parent organization while the project termination by integration
method done when a successful project is completed by distributing goods, personnel,
equipment and functions between the existing elements of the parent organization. In
the other hand unsuccessful or obsolete projects can be terminated by starvation, or in
other terms cut down on resources or funds for its completion. Usually managements
go for project starvation when they don’t want to admit a project failure. Irrespective
of how successful is the project and on what method project was completed by
extinction, integration or addition there should be a plan to terminate it. Terminating
or closing out a project is not an easy job. It needs to have a plan, schedule and a
budget similar to any other phase in the project life cycle (Dvir, 2005).
In order to succeed and to have control in this phase a termination manager need to be
assigned his main responsibility is to complete the termination process effectively and
efficiently by ensuring that project is complete, delivered, accepted by the client and
final report prepared and submitted also ascertain any product support (e.g. spares,
services etc..) if necessary (Meredith & Mantel, 2009 p.565).
Even though several authors are supporting the use of a termination manager to
ensure the delivery of a successful project to its customer, and though project
termination process is an essential part in the total project, it is often overlooked by
project managers. (De, 2001p.1)
The necessity to focus on pre-commissioning, commissioning and handing over plants
to their end users during the termination process has been recognized by professionals
in the field, but such issues in regards of how the Aramco PMT department manages
this critical phase would be explored in the present research. Yet a significant gap
emerges in this context in the sense that a small number of researchers consider the
benefits of project commissioning as an integral part of the project life cycle (Dvir,
2005; Lager, 2012). The focus of this study is maintained in a direction to prove how
project commissioning can contribute to sustainability of the oil and gas industry in
Saudi Arabia. Therefore, the following aim has been outlined for the current research
project:
2
1.1 Aim
The primary aim of this research is to explore and assess persistent problems
associated with project commissioning; as such issues tend to occur while dealing
with customers. It is relevant to note that the occurrence of specific problems can be
linked with specific factors that should be examined in detail so as to understand the
way in which the entire oil and gas sector works under certain conditions. The most
important aspect behind the identified problem refers to proposing viable solutions to
maintain an effective and transparent process of closing out of projects. It should be
specified that closing out of project usually involves the following processes:
1. Obtaining an approval from clients, which would illustrate that the project's
objectives have been met;
2. Planning and installing deliverables by selecting a reasonable period;
3. Commissioning and start-up process;
4. Writing the final report for the project;
5. Conducting a post implementation audit to capture lessons learned at all
essential phases (Kendrick, 2009 p. 293; Wysocki, 2009 p. 459)
1.2 About the Aramco PMT process
With the above introduction of Saudi Aramco as a company, and to some
extent discussing of how important this company to the Saudi economy, it is time to
look at how Saudi Aramco structure and manages their projects. The intention of this
portion is not to go into every single detail of Aramco way, but provide the reader
with a high level overview. This is might be redundant for some readers, while I hope
it would be of use for others.
In a big organization there will always be a need to balance between giving
full authority and the necessary freedom to employees to do their jobs in an effective
and creative way, versus the senior executive management desire to have control over
the company budget and how and where capital investment is spent etc... Therefore in
order to have this balance achieved is to have limitations to what each position or
employee can undertake by himself by having a procedure and a system for specific
jobs and tasks. Such systems are unavoidable with companies of Aramco size and
especially of project with total expenditure in the range of several billions of US
dollars. For that reason a system been established to govern such process and that
3
process of Designing and construction of projects which is handled by the Aramco
project management team as stated by AL-Hajri (2003, pp.4-30) consists of seven
phases as follows and as shown in below Figure 1:-
1. Phase I - Study and development
2. Phase II - Preliminary Engineering
3. Phase III- Funding
4. Phase IV- Detailed Engineering
5. Phase V - Procurement
6. Phase VI- Construction
7. Phase VII-Start Up
Figure 1: The Phases of Design and construction of project. From (AL-Hajri, 2003 p.6)
Phase I - Study and development
Usually Aramco's projects in the Study and development phase through
several stages as shown in Figure 2, which will results in the following:-
Formulate the Business Plan.
Develop the Planning Brief.
Create the Capital Program and Budget Item (BI)
Prepare the Engineering study package.
Prepare the Design Basis Scoping Paper (DBSP)
4
Figure 2: Study and development Phase. From (AL-Hajri, 2003 p.7)
Phase II - Preliminary Engineering
The development of Preliminary Engineering comes second producing the
following as shown in Figure 3:-
Draft the Project Execution Plan (PEP)
Develop the Master Contracting Plan.
Create the Project Proposal (PP).
Develop a Detailed Expenditure Request (ER).
Develop a Contract for Detailed Engineering & Construction
5
FPD: Facilities Planning Department.PS&CD: Project Support and Controls Department.DBSP: Design Basis Scoping Paper.PMT: Project Management Team. From (AL-Hajri, 2003 p.7)
Figure 3: Preliminary Engineering Phase. (AL-Hajri, 2003 p.11)
Phase III- Funding
When the project proposal is approved comes The Funding in the third Phase
in Aramco project cycle process which will produce the following as shown in figure
4:-
Prepare the Expenditure request Estimate Summary.
The review by the Executive Management.
The review by the Management Committee.
The Approval of ER by the Executive Management.
6
Figure 4: Funding Phase. (AL-Hajri, 2003 p.15)
Phase IV- Detailed Engineering
After The Approval of ER by the Executive Management comes the Detailed
Engineering in the fourth Phase as shown in Figure 5, which will includes the
following:-
Develop the Design Drawing/ Specs.
Create the Material Procurement List.
Start Procuring Aramco Material / Direct Charge (DC).
Develop the construction Bid Packages.
The Main objective of the detailed engineering Phase is to develop the Project
drawings, specifications, initiate Material procurement and develop the construction
bid packages.
7
Figure 5: Detailed Engineering. (AL-Hajri, 2003 p.17)
Phase V - Procurement
In the fifth Phase Material Procurement starts and as shown in Figure 6, this
phase includes the following:-
Procurement of Long Lead Time Material and Equipment.
Procurement of Other Material and Equipment.
Procurement of Direct Charge Surplus Material and Equipment.
Procurement of Material which available in the Saudi Aramco System.
8
Figure 6: Procurement Phase. (AL-Hajri, 2003 p.22)
Phase VI- Construction
The sixth Phase is the construction Phase which includes the following as
shown in Figure 7:-
Contract Award (if it is a lump Sum Procure Build Contract).
Contractor Mobilization
Commence Construction.
Monitoring Construction Progress.
Pre-commissioning.
Mechanical Completion.
9
Figure 7: Construction Phase. (AL-Hajri, 2003 p.24)
The construction Phase starts when the contract is awarded to the construction
contractor. Consequently, contractor will mobilize his staff, manpower and
equipment, and arrange to set working offices, stores and living camps for his
manpower in order to support the project construction.
This phase involves a lot of monitoring, job follow up and progress reporting.
Loss prevention section, inspection department and the proponent (Proponent special
experienced staff from all departments such as operation and maintenance and they
act here as the customer or the final end user) will work with the project management
team in monitoring the project.
Acceptance Committee and its chairman are established and appointed by the
proponents at the beginning of the project construction no later than the 60% stage of
the actual completion of the construction Phase. At the beginning of the Acceptance
Committee formal meetings representatives of the Acceptance Committee members,
PMT, inspection Department, loss prevention and the proponent have to be
designated.
10
When the construction stage reaches 60% PMT will advise the proponent and
request a formal kick-off meeting of the Acceptance Committee to agree on the punch
list system and procedures to start its implementation.
When all the major components of the system have been installed and pre
commissioned and verified by the PMT that the system is ready for punch listing, then
PMT will request all Acceptance Committee representatives to submit their punch
listing items. Usually those punch listing items are submitted to PMT within one week
of that request.
Four weeks away from the scheduled Mechanical completion date, the PMT
will inform the acceptance committee that the facility is complete and ready for MC
inspection with the exception of the items on the Master construction punch list. By
the next Acceptance committee meeting, all the Acceptance committee members are
provided with a list of all outstanding items of the system punch list with the Yes/No
items including the originator's recommendations for each item.
1. Yes item: meaning that the Punched item may impact the safe commissioning,
start up, and operation of the facility.
2. No item: meaning that the Punched item will not impact the safe
commissioning, start up, and operation of the facility. (AL-Hajri, 2003 p.26)
In period of three working days after having the above notification, the
Acceptance committee Chairman plans, schedules and completes the MC inspection
which is usually a detailed review of the outstanding system punch items also the
inspection of the site condition are included.
Two days after the MC inspection completion, the Acceptance committee
Chairman will call for an Acceptance committee meeting, in that meeting Committee
members will submit any additional exception items related to unfinished work or
other proposed exception items resulted during the last MC inspection walk through.
The Acceptance committee Chairman in this meeting will review the members'
recommendations of the "Yes" and "No" items. Then it is the responsibility of the
PMT to prepare a consolidate exception item list for action. Disagreements regarding
critical safety items have to be resolved before signing the Mechanical Completion
Certificate.
11
After establishing the Mechanical Completion Certificate Exception item list,
Any deletion of any items from the Exception item list or changing a "Yes" item to
"No" item needs an approval from the Acceptance committee Chairman. The
Acceptance committee or their nominees reviews on a constant basis, the MC
Certificate Exception item list to make sure that all "Yes" items that would prevent
any safe operation of any facility in the project been completed and signed off.
PMT will inform the Acceptance committee Chairman, when all the assigned
"Yes" items been tackled and completed, accepted and signed off by the originators.
Within three working days of receiving this confirmation, the Acceptance committee
Chairman convenes for an Acceptance committee meeting to instruct the PMT to
route the form with the attachment to obtain the signature. After getting all the other
signatures the PMT will present the MC certificate to the Acceptance committee
Chairman to obtain the proponent's representative signature before distributing the
original approved MC Certificate.
The MC Certificate sign off indicates the custody acceptance of the facilities
by the proponent. After this handover of the facilities to the proponent, any routine
facility maintenance will be the proponent's responsibility. Remaining work By PMT
or the contractors in order to clear the remaining "No" items can only be
accomplished under the supervision of the proponent. After the Mechanical
completion, PMT is responsible to provide a certain agreed number of contractor's
manpower and vendors to assist in the commissioning and start-up Phase.
Those crews of manpower and vendors are released upon the completion of the start-
up of the facility (AL-Hajri, 2003 pp.24-27).
Phase VII-Start Up
The Start-up of the facility is the last phase of the project as shown in figure 8
and includes the following:-
Performance Acceptance.
Site Final Accept Tests.
System Handover.
Complete Exception Item lists.
Financial Close-out.
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ERC: Expenditure Request Closed
Figure 8: Start-Up Phase (AL-Hajri, 2003 p.28)
After the approval of the MC Certificate, the commissioning and start-up of
the refinery or the facility will begin. The commissioning and start-up process is the
responsibility of the proponent organization in addition to the assistance of the PMT.
The PMT and the proponent, in conjunction with each other are responsible for
developing the commissioning plans, while the proponent is responsible for the
development and the execution of the facility start-up and the performance test plans
and it governing process. The MC certificate acceptance signifies the commencement
of the commissioning, start-up and initial operation period which will prove that the
facility is performing in accordance with the approved project scope. The
performance period is sixty days after singing the MC Certificate. During this sixty
days the proponent will review the facility performance, in relation to the operating
conditions, in accordance with the approved project scope, also proponent will
prepare a list of performance related issues that requires a corrective action if the
facility is not up to the desired performance.
A Performance Acceptance Certificate (PAC) is developed by the Project
Management Team for each facility after the final MC Certificate for the facility has
been signed. The Agreed PAC deficiency Items will be the basis of the PAC
13
ERC: Expenditure Request Closed
deficiency Item list that will be attached to the PAC at the time of signing. After the
PAC is signed the facility will be put on stream.
The Fixed Assets and Work-in-Progress (FAWIP) at the last step of this
Phase the Accounting Department start the preparation for the closeout of all job
orders related to the facility, upon the acceptance of the MC Certificate. PMT team
will assist in the financial closeout of the project and maintains the project records and
files. At the end of this phase the Expenditure Request will be closed (AL-Hajri, 2003
pp.28-30).
1.3 Research questions
When certain processes are intended to close out, various success factors should be
considered, such as pre-commissioning, commissioning and handing over plants to
their end users. Although planning and certain preparations may not be initially
perceived as important parameters of closing out of projects, bringing the focus onto
these aspects can help researchers provide feasible solutions of sustainability. Thus, it
is expected to emphasize the schedule, along with discussing aspects of hand over
packages and risk mitigations plans. Commissioning and start-up procedures should
be identified by operation and maintenance teams; in addition, it is essential to
strengthen the establishment of end-user training and continuous support function in
advance of the implementation phase to avoid catastrophic failures after plants' start-
up (Wysocki, 2009 p. 644).
In order to provide a clear direction of the research process, the following research
questions have been identified for this study:
1. Will the participation of the final end users in the commissioning and start-up
process of the plant have a positive impact on the delivery of successful
project outcomes in the long term? Contribute to the customer benefits from
the project and to its overall success.
2. What are the precise effects of the engagement of an escort team representing
the final end users during the execution of the project from the initial phase till
the end? Contributes to the efficiency of the project and to the customer
benefits from its outcomes
14
3. Is the PMT support in handing over the project to its final end users associated
with positive effects on the entire start-up process? Positively contributes to
the customer benefits from the project.
4. How does the initial preparation on the behalf of end users affect the start-up
process in its different stages? Positively contributing to the overall success of
the project and the customer benefits from its outcomes.
1.4 Research Objectives
It has been identified that the close out and hand over phase is quite essential for a
smooth commissioning and start-up process for new oil refineries. Based on similar
assumptions, it is significant to note that the identification of the allocated processes
for the close out phase in Aramco is considered fundamental. This includes a solid
focus on the effectiveness of PMT procedures, which are completed with the purpose
to highlight, identify and evaluate problems encountered during the handover
processes. In this paper we will examine the relationship between preparing and
planning of project close out, commissioning and project success. That will help on
analyzing the relationship between the efforts been spent in preparing and planning
the project transferring phase to its final end user and how much success been
achieved in result of that based on previous different points of view.
1.4 Feasibility of the study
The researcher has ensured adequate preparation at all stages of the research project to
bring it into successful outcomes. The collection of important information and
primary data is considered an integral part of the research process. An appropriate
data collection tool, which was outlined for this study, refers to distribute a survey
among project managers, project engineers, involved contractors and operation and
maintenance experts in the respective organization. The researcher has extensively
focused on exploring and evaluating specific issues related to process flow and
relevant department procedures. The feasibility of the study indicates that the
researcher has demonstrated a serious responsibility to provide practical insights into
the identified problems in the oil and gas industry in Saudi Arabia. The emphasis is on
the improvement of the execution of certain phases in order to reduce cost and start-
up delay within the organization. In turn, this would lead to improved organizational
performance and an overall project success.
15
CHAPTER II
2. Literature review
In this chapter we look at the available literatures that are related to the
research subject. Babbar et al. (2000), indicates to the importance of this part to
dissertation by stating that "literature for graduate students can be of great value,
mainly as they assess the fit of various institutions for their training and research".
It has been identified in the literature that a substantial part of Aramco refinery's
projects are sponsored by the Aramco project management department, which is
responsible for the project delivery in a timely and transparent manner. Many projects
are executed through several phases as mentioned above in the binging of this chapter,
but for the purpose of the current study the researcher is mainly interested in
exploring the feasibility of the last phase, in particular the elements of close out and
start-up phase. Such a focus allows individuals to obtain a better understanding how
the effective pre-commissioning, commissioning, close out and handing over plants to
end users contributes project efficiency, customer benefits and project overall success.
1. Will the participation of the final end users in the commissioning and start-up
process of the plant have a positive impact on the delivery of successful
project outcomes in the long term? Contribute to the customer benefits from
the project and to its overall success.
2. What are the precise effects of the engagement of an escort team representing
the final end users during the execution of the project from the initial phase till
the end? Contributes to the efficiency of the project and to the customer
benefits from its outcomes
3. Is the PMT support in handing over the project to its final end users associated
with positive effects on the entire start-up process? Positively contributes to
the customer benefits from the project.
4. How does the initial preparation on the behalf of end users affect the start-up
process in its different stages? Positively contributing to the overall success of
the project and the customer benefits from its outcomes.
16
Aramco PMT team had pulled a lot of efforts to improve their process since
they started in 1977 when they started their first project which was gas collection and
distribution program to stop flaring and save that natural gas for the kingdom of Saudi
Arabia through a whole lot of improvement processes such as lessons learned, value
engineering, integrated and continues teams and effective contracting strategies.
Project quality has improved significantly and start up time has been reduced to one
month for most of the projects (Palmer and Mukherjee 2006). As indicated by Palmer
and Mukherjee (2006 p.7) that planning for startups is an extensive set of tools and
techniques used by all project stakeholders, PMT, operations, contractors, etc., to
enable a successful plant startup and stable long term operation. Yet there are certain
gaps in the literature considering that the mentioned issues have not been discussed in
depth. Buell (1967) stated in an early article that the reason for not having enough
information on this subject because it is hard to define precise guidelines for projects
termination. A possible explanation is that minor number of researchers perceives the
benefits to explore the respective phase of project commissioning and startup, even
though it represents a crucial component of the entire project life cycle (Dvir, 2005;
Lager, 2012). Therefore, the organization of the literature review is based on the
concepts of the discussed phase so as to bring the audience's attention to optimal ways
in which project success outcomes can be delivered over time. Essential arguments
have been presented as part of the research process.
Initially, the emphasis is on the transfer of specific projects to maximize their
delivery to the final users. As part of such exploration, researchers have been
committed to exploring the impact of planning and extensive preparations for
commissioning, which would bring out adequate project success. Researchers (Lager,
2012) (Palmer and Mukherjee 2006) have examined the relationships between the
stages of planning and preparing projects to hand over to the final users, which is
believed to increase the overall project success. Dvir (2005) mentioned that four
17
planning and preparation facets are considered throughout the process, such as
development of operational & maintenance requirements, customer participation in
the development process, developers' preparations for turning over the project to the
final users, and final user preparations for introduction into operational use, along
with other three measures of project success (project efficiency, customer benefits,
and overall success)" (Dvir, 2005 p. 257). The study described by Dvir (2005) was
based on data obtained from 110 different defense projects and it included two types
of analysis, which is regression and correlation between the two set of variables.
The conclusions of the research propose and recommend that the customer
participation in the development process and the final user preparation have a quite
solid impact on project success. Moreover, the aspect of customer participation in the
development process had demonstrated a good correlation with the overall dimensions
of project efficiency, whereas final user preparation had high correlation with
customer benefits (Dvir, 2005 p. 257). Even though customer involvement does not
represent a usual process in the development of refineries the Aramco PMT substitute
the customer by the proponent to act as the final end user, which interest the
researcher in exploring the specific outcomes regarding the final user preparation for
the commissioning and start-up process. In turn, this ensures adequate contribution to
expanding the feasibility of the respective industry so that appropriate conclusions can
be presented from the entire research.
2.1 Importance of Start-upsScholars in the field also have explored the importance of start-up when it
relates to new plants and process technology, which is implemented in various
process industries (Lager, 2012). The study of different organizational issues
contributes to a better understanding of the factors of arranging similar processes in a
proper manner. According to Lager (2012, p. 3), there has been an extensive
discussion of start-up process plants. However, the necessity to develop a new, more
vibrant conceptual framework has been outlined in research. This could have been
helpful in organizing start-ups as well as discussing various alternative structures for
start-up organizations. In this context, Lager (2012) suggested four types of
organizational models, as they were derived from a thorough review of the literature
in the field as well as through the researcher's own experience in start-ups.
18
Similarly to the conclusions made by Dvir (2005), Lager (2012) stated that,
"The frame work must be tested and validated in real-life start-up situations and in
further empirical research" (Lager, 2012 p. 3). Such a conclusion can be properly used
in the organizational context especially by firms in their process industries. Another
significant aspect that may be considered is that certain comparisons can be made
between the refineries' start-up organization model with one of the suggested models
to provoke and trigger discussion. In addition, this may contribute to guiding the
present research in a relevant direction, which in turn would reflect in a flexible,
smooth process of handing over projects to the final users in the industry sector. It has
been identified in the research literature that the commissioning and the start-up
process require substantial strategic planning, communication, teamwork, training, co-
operations and leadership. All of these aspects are subjected to exploration in the
present study, with the idea to bring out essential inferences that can present adequate
implications for practice in the industry.
In a study by Kirsila et al. (2007), the focus is on the importance of integration
as an emerging project management concept. As a result, the researchers have
explored the relevance of the entire commissioning process as part of extensive
industrial deliveries. Integration has been considered an appropriate solution to extend
the innovative capacities of products and services (Brady et al., 2006). System
sourcing has been identified as an essential element, which facilitates the integration
of particular goods and services in an industry (Davies and Hobday, 2005). The
notion of systems integration implies that engineers and technology specialists are
focused on the production of adequate products and services. In order to prove the
dimensions which were mentioned, Kirsila et al. (2007) conducted interviews in
project-based business units by selecting businesses in the manufacturing and
equipment supply industry. A significant finding indicated in this study is that
engineers in the commissioning phase tend to perceive commissioning as a problem-
solving process.
The relationship between project planning and project success was adequately
explored by Dvir et al. (2003). Three significant aspects have been discussed by the
researchers, such as definition of requirements, technical specifications and project
management processes. Thus, Dvir et al. (2003) have relied on information obtained
19
from defense research and development projects in the industry (Danese et al., 2004).
An important finding illustrated by the researchers is that project success emerges as
quite insensitive to the way management processes are applied in practice. Moreover,
it has been argued that project success is positively interrelated with the development
of various technical specifications (Galbraith, 2002).
Lipovetsky et al. (1997) also have discussed the implications of project
success and how it translates to the context of modern organizations. Internal
measures represented by technical and operational goals have become an integral part
of the notion to ensure optimal project success (Santos and Eisenhardt, 2005). The
implementation process itself has been pointed out as an essential aspect of projects.
The focus of the author in the research that differs from above mentioned
authors is maintained in a direction to prove how project Pre-commissioning,
commissioning and the process of starting up refineries owned or executed by Saudi
Aramco PMT, can contribute to sustainability of the oil and gas industry in Saudi
Arabia. Therefore, the primary aim of this research is to explore and assess persistent
problems associated with project closing out phase; as such issues tend to occur while
dealing with different stakeholders. It is relevant to note that the occurrence of
specific problems can be linked with specific factors that should be examined in detail
so as to understand the way in which the entire oil and gas sector in Saudi Arabia
works under certain conditions. The most important aspect behind the identified
problem refers to proposing viable solutions to maintain an effective and transparent
process of closing out of projects.
20
CHAPTER IIIResearch MethodologyThe research methodology chapter of the research study mirrors the research
techniques and methodologies that would be taken into consideration with the view to
gather ample and resourceful data by way of research questions. Similarly, the
research methodology chapter of this dissertation focuses upon on gathering facts
related to problems associated with project commissioning; as such issues tend to
occur while dealing with customers. It also throws light on the way in which the study
has been carried out. At every stage of the research ethical and moral aspects have
been properly considered.
Justification of Theoretical Approach
The researcher has ensured adequate preparation at all stages of the research project to
bring it into successful outcomes. The collection of important information and
primary data is considered an integral part of the research process. An appropriate
data collection tool, which was outlined for this study, refers to distribute a survey
among project managers, project engineers, involved contractors and operation and
maintenance experts in the respective organization. The researcher has extensively
focused on exploring and evaluating specific issues related to process flow and
relevant department procedures. The feasibility of the study indicates that the
researcher has demonstrated a serious responsibility to provide practical insights into
the identified problems in the oil and gas industry in Saudi Arabia. The emphasis is on
the improvement of the execution of certain phases in order to reduce cost and start-
up delay within the organization. In turn, this would lead to improved organizational
performance and an overall project success.
Research Purpose
It has been identified that the close out and hand over phase is quite essential for a
smooth commissioning and start-up process for new oil refineries. Based on similar
assumptions, it is significant to note that the identification of the allocated processes
for the close out phase in Aramco is considered fundamental. This includes a solid
focus on the effectiveness of PMT procedures, which are completed with the purpose
to highlight, identify and evaluate problems encountered during the handover
21
processes. In this paper we will examine the relationship between preparing and
planning of project close out, commissioning and project success. That will help on
analyzing the relationship between the efforts been spent in preparing and planning
the project transferring phase to its final end user and how much success been
achieved in result of that based on previous different points of view.
Research Paradigm
The literature review chapter above without any doubt ascertained that this study isn’t
about being distressed or predisposed regarding any approach. The research put
forward till now from the literature is inclined towards individuals’ interpretations and
meanings and for that reason the interpretive approach was employed, which lays
emphasis on collecting and scrutinizing quantitative facts, which could built up
insightful and significant findings. Nevertheless, Drake et. al. (1998) assert that the
level of the explanation moves around the degree to which it allows other humans to
decipher an occurrence as well as formulate connotation around those being analyzed.
As a result, the interpretive concept was used for this study. In addition, Orlikowski
and Baroudi (1991) add to it by stating that the interpretive approach assigns logic to
an event on the basis of meaning assigned to them by the individuals plus all the
stakeholders related with the event. Imperative approach concentrates on traditions,
principles and assessment structures. Further, Darke et. al. (1998), state that the
overall notion of interpretive approach sees individuals as social performers, around
whose views and perspectives the entire approach moves.
Going ahead, the research aims to scrutinize the actual world settings by probing the
data collecting from a number of sources including interviews, examination along
with textual data. Nonetheless, the study puts forward exceptional environment to
carry out case sourced research. Researcher will use a structured questionnaire survey
that will be filled at least by 30% of the key personal project managers, project
engineers and operation and maintenance experts representing the final end user in
which they can gather the necessary data to solve the research questions. The survey
will be done by sending self-completion questionnaires by E-mail. The questionnaires
will include both open end questions and closed ended questions. The closed-ended
questions will be measured by applying the Likert Scale in five point response scale
(Allen and Christopher, 2007). Furthermore in depth interview will be hold with key
personal in both involved parties in this research PMT and the final end user the
questions will be around what make a successful project close out and smooth hand
22
over to the final end user. Moreover, as Darke et al. (1998) mention that case study is
one of the highly adopted and effective research techniques since it helps in precisely
understanding the intricacies of links and connections amongst the concepts, it is
extremely appropriate for this study. The company chosen for this research is Saudi
Aramco. As a result, the case study presented excellent means for finding out
problems associated with project commissioning; as such issues tend to occur while
dealing with customers. Further, the paragraphs below mirror the epistemology and
the ontology notion associated with interpretative technique.
Epistemology
Epistemology is concerned with the nature of knowledge claims. From an interpretive
perspective, Archer (1998) identifies two positions that can be adopted; “‘non
positivism’ in which facts and values are intertwined and hard to disentangle, and
both are involved in scientific knowledge; and ‘normativism’ which takes the view
that scientific knowledge is ideological and inevitably conducive to particular sets of
social ends”(Walsham, 1995). This study adopted the latter in that knowledge is
viewed as subjective and based on experiences.
Ontology
Ontology is concerned with the nature of reality. From an interpretive perspective,
Archer (1998) also identifies two positions that can be adopted; “‘internal realism’
which views reality-for-us as an inter-subjective construction of the shared human
cognitive apparatus, and the ‘subjective idealism’ where each person is considered to
construct his or her own reality” (Walsham, 1995). This study considered both as
whilst reality is viewed as a product of one’s own mind (not as out-there), the nature
of the research questions involve notions of congruent/shared frames, inscriptions and
cultures, based upon interactions.
Case Study Approach
Yin (2009) defined a case study in a twofold definition. The first described the scope
of the case study: “a case study is an empirical inquiry that investigates a
contemporary phenomenon in depth and within its real context, especially when the
boundaries between phenomenon and contact are not clearly evident (Yin, 2009)”.
The second section described technical characteristics: “the case study inquiry copes
with technically distinctive situation in which there will be many more variables of
23
interest than data points, and as one result relies on multiple sources of evidence, with
data needing to converge in a triangulating fashion, and as another result benefits
from the prior development of theoretical propositions to guide data collection and
analysis (Yin, 2009)”.
Case Studies have featured prominently in works over the last 30 years, as they
appear to have provided significant contributions to theory development in multiple
management areas (Barratt et al., 2011). Case studies have also proven invaluable for
the “development of a nuanced view of reality including the view that human
behavior cannot be meaningfully understood as simply the rule-governed acts found
at the lowest levels of the learning process and in much theory (Flyvbjerg, 2006)".
They therefore allow for a better analysis of both social processes and relationship
complexities in organizations, by combining different data collection methods such as
interviews, questionnaires, observations and archives (McIvor, 2009). Barratt et al.
(2011) segmented case studies into two major fields, deductive and inductive.
Deductive case studies focus on theory testing, while rarely recommended by
researchers for this purpose, while the Inductive approach is commonly adopted
where the main objective is to build or develop theory.
Case-study Method Advantages
Case studies can be used for different purposes such as submitting descriptions,
testing theories or generating theories (Eisenhardt, 1989). They display three key
advantages: By supporting the development of novel theories, producing potentially
testable theory and ensuring the "emergent theory" is likely to be empirically valid
due to its proximity to research subject reality (Eisenhardt, 1989). Other advantages
include the ability to study the phenomena in reality, thus linking theoretical
conjecture with practical application (Meredith, 1998). A primary purpose of this
paper remains to better understand the problems associated with project
commissioning; as such issues tend to occur while dealing with customers
Case-study Method Drawbacks:
Researchers have primarily found it difficult to generalize the outcomes from case
study research (Yin, 2009). Case studies have often been charged with not promoting
generalization, and treated as 'samples' rather than a method to expand on theory (Yin,
2009). The biggest drawback exists in the inability to screen and test investigators
abilities impartiality and capability when conducting case study research (Yin, 2009).
Researchers also criticize the lack of precision demonstrated by investigators when
24
employing case studies (Yin, 2009). Instances of such behavior include the
investigator becoming sloppy, not adhering to regulations, and allowing preconceived
notions to influence results and conclusions (Yin, 2009). Eisenhardt (1989) felt case
studies introduced excessive depth to the outcome rather than providing an overall
simplified perspective. Past studies have been accused of being long and unreadable
when case study methodology is confused with ethnography or participant-
observation (Yin, 2009). In spite of such criticisms, case study research has proved
invaluable in understanding problems associated with project commissioning; as such
issues tend to occur while dealing with customers (Voss et. al., 2002).
Using Quantitative Approach
Barratt et al. (2011) felt case study methods required justification in the conducting of
exploratory research to explain a phenomenon. This involves asking "how" and
"why", while being mindful of the context and participants (Barratt et al., 2011). A
quantitative case study uses multiple interpretative techniques when describing and
translating the occurrences in the social environment, rather than looking solely at the
repetition of events. It supports a substantial diagnosis of the interpretation of the
social world mechanisms by its participants (Bryman and Bell, 2007). It is thus an
appropriate method when analyzing investigations where it is impossible or
inappropriate to collect and substantiate empirically quantitative data. Quantitative
studies thus places great emphasis on everyday interactions and practices rather than
artificial environments and hypothetical situations (Flick, 2006).
It increases the relevance of findings by leveraging the practical experiences of
managers (Barratt et al., 2011), and provides the "tools for researchers to study
complex phenomena within their contexts” (Baxter and Jack, 2008). Depending on
the researchers’ reflections when using multiple methods, this leverages the flexibility
of the researcher and research subject (Flick, 2006). The collection and analysis of
data in the following case study, will utilize a variation of both the deductive and
inductive quantitative approaches. Both techniques will be explained in greater detail,
further in the chapter. This study will thus aim to uncover the problems associated
with project commissioning; as such issues tend to occur while dealing with
customers.
Using Single Case Study
In the past, single case studies have often been criticized as they lack sufficient
opportunity for comparison and restrict discussion (Barratt et al., 2011). Eisenhardt
25
(1989) said the generalization of obtained results potentially proved difficult through
this method. Some researchers are led to conclusions based on a narrow avenue of
feedback far split from the reality affecting other entities in the market (Flyvbjerg,
2006). Yet case study approaches have proven valuable in the exploring and
developing new theory independent of what dictates policy for the majority of the
market (Scapens, 1990). Yin (2003) feels the primary purpose of case studies is to
answer questions of "why" and "how" when examining contextual conditions which
may have significance in the phenomena under study. Barratt et. al. (2011) found
single case studies allowed exploration of a phenomenon in greater detail, Voss et. al.
(2002) said they provided the chance to examine different contexts in the same case
and Yin (2009) stated they prove useful only when the phenomenon being explored
has limited research or empirical development.
The application of a single case study is appropriate here as there is insufficient
international research on strategic collaborative ventures and the barriers to achieving
such buyer-supplier relationships in mainland Asia, especially India. The use of
published data is therefore limited in the use of local journal articles, web pages, and
publications as they yield no substantial information. Thus, this single case study
offers great depth rather than exploring several units at a cursory level in a limited
time frame (Voss et. al., 2002). The exploration of research and evolution of both
Supply chain alignments through logistics networks in the Indian subcontinent are
severely restricted both theoretically and practically. While significantly attributed to
the country's developing transportation and information systems, there are multiple
other factors involved.
Data Collection
The research was carried out in two ways; collecting primary data through surveys
and using secondary sources. First of all, the primary data and information was
collected through survey technique. The key reason behind adopting the survey
method are the several benefits like easiness of administration, prompt delivery, low
cost, superior data quality as well as general expediency linked with this method of
data collection. The survey questionnaire was devised bearing in mind the research
aims and objectives and the facts gathered were analyzed accordingly. According to
Fontana and Frey (1998), the method of surveying is one amongst the highly effective
and powerful techniques to gather data and appreciate associate human beings. It is
basically a conception that is appropriate for nearly all methods. With respect to
26
interpretive case studies, surveys offer a researcher the chance to “access the
interpretations that the participants have regarding the actions and events which have
or are taking place, and the views and aspirations of themselves and other
participants” (Washam, 1995). Moreover, this aided in amassing useful data in highly
effective manner, enabling easy comparison plus understanding.
Researcher will use a structured questionnaire survey that will be filled at least by
30% of the key personal project managers, project engineers and operation and
maintenance experts representing the final end user in which they can gather the
necessary data to solve the research questions. The survey will be done by sending
self-completion questionnaires by E-mail. The questionnaires will include both open
end questions and closed ended questions. The closed-ended questions will be
measured by applying the Likert Scale in five point response scale (Allen and
Christopher, 2007). Furthermore in depth interview will be hold with key personal in
both involved parties in this research PMT and the final end user the questions will be
around what make a successful project close out and smooth hand over to the final
end user.
Apart from primary facts, the study also involved collecting huge amount of
secondary facts from a number of sources including newspapers, past researches,
textbooks, journals, online sources etc.
Using Survey Questionnaires
Questionnaires were used as the primary source of data collection. There are two main
types of questionnaires – fixed response and open-ended (Denscombe, 2003). Fixed
response questionnaires only permit the respondent to answer in a certain way, often
in the affirmative or negative (Denscombe, 2003). These may be considered ‘coded
answers’. Open-ended questions allow respondents to fill in answers as they please.
While such questions may also be standardized, it becomes harder for the investigator
to categorize, or code, all the answers (Denscombe, 2003). The responder may
diverge from the topic while quoting the involved benefits and hazards, often citing
that the response varies when dealing with different situations (Denscombe, 2003).
The use of questionnaires provided many advantages to both the investigator and
recipient.
27
Benefits to the Questionnaire Recipient:
1. It allowed them to evaluate and prepare subject material, thus not being caught
unaware in an interview.
2. Consult additional material and personnel relevant to the question based on
their position in the organization.
3. Provide detailed feedback unrestricted by time in an interview session.
4. Elaborate on descriptions and examples.
5. A comfortable question delivery method to deal with.
6. Clarify their doubts on the current situation and relationship status in
preparation for the upcoming discussion.
Benefits for the Investigator:
1. Supports quick data collection and avoids synchronizing time when collecting
feedback from a global audience.
2. It is a more standardized method of data collection, as questionnaires are more
objective compared to interviews (Denscombe, 2003).
3. It is cost effective and practical method of data collection.
4. Designed to reach a large audience in record time (Denscombe, 2003).
5. Less intrusive into the respondents life as it does not interrupt the respondents
life (Denscombe, 2003).
Drawbacks of Using Questionnaires:
The use of questionnaires is not without major disadvantages to flexibility,
misinterpretation of answers, the absence of relevant information and the divergence
of the source from the core question being posed (Denscombe, 2003). The following
list describes these disadvantages:
1. Inability to capture immediate changes in emotion/feelings or behavioral
changes when discussing sensitive information (Denscombe, 2003).
2. Participants may be forgetful or not consider the full context, thereby omitting
important information.
3. Too much data to analyze from open-ended questions.
28
4. Participants may misinterpret the real question being asked or deviate from the
matter entirely (Denscombe, 2003).
5. Inability to determine how truthful or forthcoming the respondent is.
6. Inability to change questions midway through the answering process due to a
lack in foresight of the investigator in framing the questions (Denscombe,
2003), hence less reactivity.
7. Potential for high variance in responses. Questions may be interpreted by
respondents in ways the researcher did not intend or foreseen.
8. Questionnaires can constrain or distort the way respondents answer and may
thus lack validity.
9. Respondents can be influenced to answer in certain ways by the researcher or
the questions (Denscombe, 2003).
To overcome these drawbacks and in order to introduce greater flexibility, a second
round of information gathering was scheduled by conducting indirect surveys.
Conducting Surveys
Surveys and discussions were held in an attempt to overcome the disadvantages
presented by the use of questionnaires as the sole source of data. Yin (2009) believed
the surveyor has two main tasks. Firstly, follow the line of inquiry in the case study.
Secondly, to ask the real question in an impartial way that also serves the needs of the
line of inquiry of the research. Interviews may be direct (involving on-site visits and
face-to-face conversations), or indirect (using WebEx/Skype conferences and
telephone conversations).
Like questionnaires, Interview questions may be fixed-response or open-ended. The
format may also be structured, semi-structured, or unstructured (Yin 2009). It depends
greatly on the amount of control the interviewer wishes to relinquish to the
interviewee, when directing the session (Yin 2009). Maylor & Blackmon (2005)
recommend the adoption of un-structured interviews for a case study research because
the method advocates using emerging data. The interviewee is directed to a general
area which he wants to discuss, and then allows the issues or information to emerge
29
from the conversation (Maylor & Blackmon, 2005). However, Yin (2009) suggested
that such conversations should be guided through a semi-structured discussion, rather
than being rigidly structured or completely unstructured. Semi-structured interviews
presented more chances for the subject to express his viewpoints than in a standard
interview or questionnaire (Flick, 2006). It also ensured a steady hand is directing the
discussion towards the successive questions and the ultimate research objectives.
The surveys were thus semi-structured discussions, permitting limited divergence and
based on the completed questionnaires submitted by the participants. A major reason
the interviews were kept semi-structured was because this researcher wanted to
explore both the preconceptions which shaped the literature review while providing
an avenue for the various emerging themes discussed by the participants. If
participants elected not to fill the forms, then a direct interview was conducted.
Ethical Considerations
Ethical considerations of surveys include honesty and confidentiality; the use of the
interviews must be explained and the confidentiality of the participants must be
ensured. In order to gain participant trust and therefore the most confident, honest
answers, they will need to be ensured that this research is purely as part a university
course and they will not be named or made public in any way. The topic being
researched is ethical in its self in the sense that it draws upon the very morality of
human beings and therefore should be treated as a sensitive subject. The
environmental ignorance of the so-called first world that for years only affected the
third world now is faced upon us all and it has therefore been argued that the risks of
modern life, in their consequences, have become “socially just” (Dryzek, 1997). The
realization that the earth is in fact a finite planet with limited resources to support
modern human life, that occurred around the same time that the earth was first
photographed from space (Dryzek, 1997), not only reinforces the concepts of frames
and inscriptions, but has also lead to what can be described as the ‘quest for safety’
being one of the most high profile political issues of our time.
All through the dissertation, it was ascertained that the research aim and surveys were
clear and fully understandable to the individuals participating in the survey.
Additionally, during surveying stage, no recordings were done without proper
30
approval of the interviewee. Moreover, it was ensured that all surveys are free from
any kind of political questions or personal questions related with the values and
traditions. Also, it was ensured that throughout the dissertation, the efforts and work
of others were suitably documented and acknowledged. Maylor and Blackmon (2005)
assert that it is extremely essential to correctly attribute the involvement of other
people in a specific research through referencing and in-text citations together with
concentrating on university specific plagiarism guiding regulations.
Limitations
It can be argued that “because the goal of interviews is understanding; it becomes
paramount for the researcher to establish rapport” (Fontana and Frey, in Denzin
1998). By seeing situations from the participants perspective, “rather than impose the
world of academia and preconceptions upon them” (Fontana and Frey, in Denzin
1998), respondents give much more insightful and ‘truthful’ responses to questions
and therefore the overall depth and insight of the data increases. However, the
interviewer must take care not to lose their objectivity, become ‘naive’ and thus lose
their academic role, becoming a spokesperson for the participant, rather than
producing any meaningful data.
Like every study this study also encountered a number of challenges at different
phases from devising the activity plan till the time of carrying out surveys.
Considering the nature of research topic, it was decided to choose a company research
and perform analysis based on both primary as well as secondary information than
solely on past studies along with texts, journals etc.
First of all, some issues were faced while arranging interviews. The main reason
behind this was the fact that the interview was conducted among managerial positions
so arranging surveys took time. Secondly, obtaining access to past research related to
the chosen topic was bit difficult. Owing to matter of privacy, access to all the
literature was attained only subsequent to carrying out initial formality. In addition,
issues were even experienced during research techniques finalization as a result of
short time of the research study.
Moving ahead, the continuing paragraphs would throw light on the alternative
approaches which could be considered for gathering information.
31
Alternative Considerations
Ethnographic research is one of the most in-depth research methods that offer a
researcher (or ethnographer) the opportunity to obtain a “deep understanding of the
people, the organization, and the broader context within which they work” (Myers,
1999). Whilst ethnography offers many benefits and has similarities with the case
study approach, it also differs in two particular ways; ethnographic research is done
over long periods of time and the amount of researcher involvement as the
ethnographer needs to “immerse themselves in the life of the people they study”
(Lewis 1985, in Myers 1999). The first difference is the main reason why
ethnography has not been chosen for this research as there is the timetable for the
whole research is less than a year and therefore rather constraining for an
ethnographic study; ethnographers not only need to spend a lot of time at the site
conducting the research, but the data gathered also takes a very long time to analyze
due to its very richness and even though that I'm working and participated in this case
commissioning and start-up I was busy doing my own job and I was not fully
dedicated to do my research but it was very beneficial for me to observe whatever was
suitable and helping me to identify issues that usually happens in such phase .
However, over a 3 year period during one’s doctoral studies, for example,
ethnography could be chosen as it offers great depth and understanding, and the
timescale in which to do it. The second difference is appealing in that the bulk of the
data would not be captured through surveys, but rather through observation
supplemented by interviews. The benefit of this is that an ethnographer “sees what
people are doing as well as what they say they are doing” (Myers, 1999) and therefore
gains a much deeper understanding of the area of research, including all the ‘everyday
life’ aspects of it that could be missed during surveys. Of course there are limitations
to this type of study too and it is often criticized of not having much breadth and
therefore findings being difficult to generalize or be developed into frameworks or
models. However, it can be argued that it is possible to generalize from ethnography,
in the same way that it is possible from case studies (Walsham 1995, Yin 1994).
Finally, whilst ethnography can offer a lot of depth, because of the nature of the
method it only offers the ethnographer the ability to research one organization.
Whereas the case study approach offers the ability for the researcher to conduct
research at a number of sites as there is no need to become ‘immersed’ in an
organization and so surveys can be done in a number of firms.
32
CHAPTER V (Results and Analysis) is exactly what it sounds like and, in some ways, is the 'crunch' - what you've managed to find out that's 'new' and how. This bit can take quite some time, due to the necessary analysis behind it. Results and Analysis (20%)
This is where you put the findings from your data. For high marks in the dissertation it is not sufficient simply to describe all the data you collected in your research, no matter how professionally presented. Detailed data tables and descriptions can be placed in an appendix unless it would be impossible for the reader to understand your message without referring to them. As is the case for the rest of your dissertation, your data analysis should offer a clear narrative to the reader, all the time bearing in mind how your findings help to answer your research question. Separate if you can your account of your findings from a discussion of those findings (one section is descriptive; the other, opinion). The discussion should contain your thoughtful perspective on what you have found, and in particular how what you have found relates to your question; does it answer the question? If not, why not? Conclusions and Recommendations for Further Research (15%)
Conclusions refer backwards; recommendations look forwards. This section is your opportunity to draw together all the threads of your work over the dissertation, referring of course to your dissertation aim(s). Summarize what you have found out from your literature review and your research. You may wish to refer briefly to literature which throws particular light on your conclusions, perhaps supporting them in some way. For high marks, the conclusions will also be ‘reflective’; that is, what you have personally gained from your dissertation; what you have seen as the limitations to what you did; and how you would do the work differently if you were to undertake it again. You may also include a ‘recommendations’ category. This may be relevant for example if your work has been of value to an organization and you wish to describe here the recommendations resulting from the research. However, the assessor will be looking for consistency between these recommendations and the conclusions in the previous section. You should also discuss how your findings and conclusions could be augmented by further research.
33
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