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© 2014 - IFP Training Engineering Management Training Engineering Management training GPA’s Leiden conference Knowledge session May 16th, 2014 Having trouble downloading? Go to: http://goo.gl/kIfGP0

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Slides of Hervé Baron's Engineering Management Training delivered as part of GPA conference on May 16th, 2014 in Leiden

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Engineering Management Training

Engineering Management training

GPA’s Leiden conference

Knowledge session

May 16th, 2014

Having trouble downloading?

Go to:

http://goo.gl/kIfGP0

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Training Agenda

� The Engineering work process• Getting started: Process design• Plant design• Engineering development phases• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Training Agenda

� The Engineering work process• Getting started: Process design• Plant design• Engineering development phases• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Process Design

Processs scheme selection

Oil + gas + water Gas

Oil

Water

Tanker

Gas re-

injection in

reservoir

Well

HP Separator

LP Separator

Imagine we have to do the process

design of a simple oil production

system…

What would be the bases of design?

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Process Design

Processs scheme selection

Oil + gas + water Gas

Oil

Water

Tanker

Gas re-

injection in

reservoir

Well

HP Separator

LP Separator

P

T

Q

xi

Pg

Vapour

pressure

spec

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Process Design

Processs scheme selection

Oil + gas + water

Oil

Water

Well

HP Separator

LP Separator

How would we optimize the process

scheme?

Tanker

Gas

Gas re-

injection in

reservoirP

T

Q

xi

Pg

Vapour

pressure

spec

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Process Design

Processs scheme selection

OilWell

HP Separator

LP Separator

P1

P2T

Oil + gas + water

Oil

Water

Gas

Tanker

Gas re-

injection in

reservoirP

T

Q

xi

Pg

Vapour

pressure

spec

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Process Design

Processs scheme selection

HP Separator

LP Separator

Vapour

pressure

specP

Q

Q

W

WP

T

Q

xi

P

T

Q

xi

P1

P2T

Pg

P

T

Q

xi

What would be the output of the

Process scheme design?

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Process Flow Diagram + Heat & Mass Balance

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Process Design / Sizing of Equipment

Tanker

HP Separator

LP Separator

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Process Design

Equipment sizing

Sets the gas

cross section

Sets the liquid volume

Vessel size

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Process Design

Equipment sizing

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Process Design / Specification of Equipment

Tanker

HP Separator

LP Separator

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Process Design / Specification of Equipment

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Training Agenda

� The Engineering work process• Getting started: Process design• Plant design• Engineering development phases• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Plant Design

PFD,

HMB

Process Design

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Process Design

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Process Design Utility consumption

Utility Units Design

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Plant Layout

Process Design Utility consumption

Utility Units Design

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Plant Design

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Unit Plot Plan

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Fluids composition

& conditions

Material selection and

specifications

Process Design

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Material Selection Diagram

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Fluids composition

& conditions

Material selection and

specifications

Process Design

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Equipment Mechanical Design

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Equipment Mechanical Data Sheet

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Fluids composition

& conditions

Material selection and

specifications

Equipment design by

vendors

Process Design

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Equipment General Arrangement

Process

Data Sheet

Waste

Heat

Boiler

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Fluids composition

& conditions

Material selection and

specifications

Equipment design by

vendors

Civil design

Process Design

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Civil Foundation Drawings

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Fluids composition

& conditions

Material selection and

specifications

Civil design

Process Design

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Piping & Instrumentation Diagram

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Fluids composition

& conditions

Material selection and

specifications

Civil design

Process Design

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3D modelling

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Piping isometric drawing

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Process Design

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Strucutral steel design

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Strucutral steel design drawings

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Process Design

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Instrumentation design

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Instrumentation list

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Electrical power

generation & distribution

Process Design

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Electrical design

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Electrical design

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Electrical design

Turbogenerator

Switchgear

Transformer

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Electrical power

generation & distribution

Process Design

Do you want to

know more?

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Your reference

A unique synthesis

200 pages, 250 illustrations

3000 copies sold to date

Browse the book on-line at:http://www.readoz.com/publication/read?i=1025356#page1

Order with a 25% discount voucher at:https://www.dropbox.com/s/845htatxm7cqz8a/Special%20offer%20Leiden.pdf

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Training Agenda

� The Engineering work process• Getting started: Process design• Plant design• Engineering development phases• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Electrical power

generation & distribution

Process Design

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EngineeringDocuments for Purchase:bill of quantity & specification

Documents for Construction:Drawings & specifications

Documents submitted to

client

Client

Approval/Comments

FEED

Vendors

Documents submission Comments

Detailed Engineering

Client specs & stds

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Process Units

Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Electrical power

generation & distribution

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Process Units

Design

Plant Layout

P&IDs

Fluids composition

& conditions

Material selection and

specifications

Equipment mechanical

design

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Front End

Engineering

Design (FEED)

+/- 10% CAPEX estimate

Documents submitted to

client

Client

Approval/Comments

Functional requirements

FEED

Engineering documents for EPC call for tender

Material Requisitions for LLI

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Training Agenda

� The Engineering work process• Getting started: Process design• Plant design• Engineering development phases• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Interface with vendors

Process simulations

Equipment

selection &

purchase

Foundation

drawings

Process data

sheet

Vendor data

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Electrical power

generation & distribution

Process Design

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Plant Design

PFD,

HMB

Process

Equipment

sizing

Utility consumption

Utility Units Design

Process Units

Design

Plant Layout

Equipment mechanical

design

Equipment design by

vendors

P&IDs

Piping Routing

Instrumentation &

Control design

Fluids composition

& conditions

Material selection and

specifications

Civil design

Structural steel

design

Electrical power

generation & distribution

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Interface with vendors

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Interface with vendors

Vendor

Instrumentation &

Control

Electrical

Layout

Civil

PipingProcess

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Vendor data necessary for design development

VendorInstrumentation &

Control

Electrical

Layout

Civil

P&ID

Functional analysis

C&E

Terminals dwgs

Power consumption

General Arrangement

Foundation drawing and loads,

including auxiliaries!

Piping

Purchaser Mechanical

connection list and

dwg

Process

Utility consumption

Battery limit conditions

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Plot Plan development with vendor information

Example #1 – Combustion air blower

FEED EPC - IFD EPC - IFC

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Plot Plan development with vendor information

Example #2 – incinerator package

FEED stage EPC Stage

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Training Agenda

� The Engineering work process• Engineering development phases• Getting started: Process design• Plant design• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequences for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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From sequential to concurrent Project execution

ENGINEERING

PROCUREMENT

CONSTRUCTION

Bill of

materials

Drawings

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ENGINEERING

PROCUREMENT

CONSTRUCTION

From sequential to concurrent Project execution

ENGINEERING PROCUREMENT CONSTRUCTION

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Training Agenda

� The Engineering work process• Engineering development phases• Getting started: Process design• Plant design• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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ENGINEERING

PROCUREMENT

From sequential to concurrent Project execution

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Piping installation work process

Unit Plot Plan Line diagram

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Piping installation work process

Piping LayoutLine diagram

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Piping installation work process

Piping Layout 3D model

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Piping installation work process

3D model Isometric drawing

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Piping installation work process

Plot PlanLine

Diagram

Piping

Layout3D model

Isometric

drawing

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Piping Material Management

Above ground Piping

Plot PlanLine

Diagram

Piping

Layout3D model

Isometric

drawing

1st PORFQ Final

qties

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Management of MTOs

Piping MaterialMaterial has to be ordered long time before

� Engineering is finalized� Construction drawings are available

e.g. First lot of Piping materials must be ordered month 9, constructiondrawings (isometric) will start being issued month 13

How to deal with this?

� Perform several MTOs:

o 1st MTO: issued for Inquiry, to get the Unit prices

o 2nd MTO: issued for Order

o 3rd and subsequent MTOs: olrder balance between final and

previously ordered quantities

� Order partial quantities initally, e.g., 70% of qties taken off to prime fabwhile avoiding ordering too much

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ENGINEERING

CONSTRUCTION

From sequential to concurrent Project execution

QUANTITIES TO ERECT

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From sequential to concurrent Project execution

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From sequential to concurrent Project execution

Engineering shall perform regular MTOs to provide Constructionregular up-dates of total quantities to be installed for allcommodities:

� m3 of concrete,

� tons of steel,

� meter or ton of UG piping,

� ton of AG piping,

� number of Electrical consumers,

� km of electrical cables,

� km of instrumentation cables.

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Training Agenda

� The Engineering work process• Engineering development phases• Getting started: Process design• Plant design• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequences for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Piping activities

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Piping activities

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36PLANT START-UPPIPING PRE-FABRICATION & INSTALLATION X X X X X X X X X XPIPING MATERIAL & DRAWINGS AT SITEPIPING MATERIAL MANUFACTURING & SHIPPING X X X X X XPURCHASE OF PIPING MATERIALTECHNICAL & COMMERCIAL CLARIFICATIONS X XCALL FOR TENDER FOR PIPING MATERIALPREPARE PIPING MATERIAL TAKE-OFF XPIPING ROUTING STUDIES X X XPIPING & INSTRUMENTATION DIAGRAMS (PIDs)

PROJECT SCHEDULEMONTH

1

1

23

3

4

5

2 4 5

5

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Critical path of an Oil & Gas Project

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Critical path of an Oil & Gas Project

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Critical path of an Oil & Gas Project

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Critical path of an Oil & Gas Project

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Training Agenda

� The Engineering work process• Engineering development phases• Getting started: Process design• Plant design• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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Typical level 1 On-Shore EPC Project Engineering schedule

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Engineering progress measurement

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Engineering progress measurement

Key Engineering Milestones for an EPC

• P&ID 1st issue

• LLI PO

• HAZOP

• 1st model review

• 1st Piping PO

• Control valves, PSVs PO

• Plot Plan IFC

• IFC P&IDs

• 50% ISOs

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Engineering progress measurement

Key Engineering Milestones for an EPC

• P&ID 1st issue

• LLI PO

• HAZOP

• 1st model review

• 1st Piping PO

• Control valves, PSVs PO

• Plot Plan IFC

• IFC P&IDs

• 50% ISOs

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Engineering progress measurement

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Engineering progress measurement

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Training Agenda

� The Engineering work process• Engineering development phases• Getting started: Process design• Plant design• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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The “Ideal” Project Control dashboard

Milestone status

Milestone Planned Forecast Actual

LLI PO PLaced

50% Eqt PO

1st steel PO

1st Piping PO

IFC P&IDs

IFC Plot Plan

50% Isometrics

Quantities follow-up

Commodity Initial Forecast

Concrete (m3)

Steel (tons)

Piping (tons)

Elec cables (km)

Concrete workfront curve

cumulative m3 of IFC dwgs

Steel structure workfront curve

cumulative tons of IFC dwgs

Piping workfront curve

Cumulative tons of IFC isos

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Training Agenda

� The Engineering work process• Engineering development phases• Getting started: Process design• Plant design• Interface with Vendors

� Project execution• From sequential to concurrent E/P/C• Consequence for Engineering: Bill of materials and quantities management

� What Engineering must do to meet the Project schedule

� How to control Engineering activities• The different progress measures• The ideal Control dashboard• The look-ahead

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The look ahead

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Beyond this presentation

Did you enjoy this short introduction?

Then join:

IFP Training 3 day Engineering Management Training

Nov 17th-19th, Paris

All details and how to enroll at:

http://www.ifptraining.com/course/engineering-management-1.html