power generation business management project management

Power Generation Business Management

Project Management

April.2019

Hacettepe University

Who we are?

Tugba Kalem

BS; 2002 ODTU, Metallurgical and Materials

Engineering

MS; 2004 ISU, Materials Science and Engineering

2005-2010 TEI

2010 MAN

2011 - …

Power Generation Services – Certified Project

Manager

Siemens Gas and PowerApril 2019

Sena Ünver Korkmaz

2001-05 BİLKENT, Business Information

Management

2006 - …

Commercial Project Manager

Agenda

What is Project and History 10 min

Project Management Basics 10 min

Bandırma II Combine Cycle Power Plant Project 25 min

Create a Project (Exercise Step-1) 30 min

Break 15 min

Project Management Processes 50 min

Follow-Up / Evaluate a Project (Exercise Step-2) 20 min

Wrap-Up 5 min

Questions / Speak-Up 15 min

April 2019 Siemens Gas and Power

What is Project?

Siemens Gas and Power

A project is a temporary endeavor undertaken to create a unique product or service.

Projectum: to throw something forwards!.. (in Latin)

Planned from beginning to end

Bounded by time, resources, & required results

Defined outcome and deliverables

Deadline

Budget limits, number of people, supplies, and capital

Saqqara Pyramid: the oldest complete stone building project known in history, in Egypt,

2620 BC.

April 2019

Project Management

What’s that?

Contract Order Stakeholder Team

Customer Subcontractor Owner Cost Calculation

Supplier Risk Oppurtunity Claim

Negotiation Schedule Milestones Delay

Penalty Warranty PAC Bonds

FAC Satisfaction Complaint Budget

Project Management, then, is the application of knowledge, skills, tools, and

techniques to project activities to meet the project requirements.

The purpose of project management is to foresee or predict as many dangers and

problems as possible; and to plan, organize and control activities so that the

project is completed as successfully as possible in spite of all the risks.

Project Management is the discipline of initiating, planning, executing, controlling,

and closing the work of a team to achieve specific goals and meet specific success

criteria.


The Project Management Institute (PMI) is a global nonprofit professional

organization for project management

Key Words of Project Management

Important Projects in the History

Apollo 11,

Florida, USA

(1960-1969, 25B$)

Yavuz Sultan Selim Bridge

Istanbul, Turkey

(2013-2016, 8,5B TL)

Int. Space Station

(100B$, Nov 2000)

Avrasya Tunnel

Istanbul, Turkey

(2011-2016, 1.2B$

Channel Tunnel

Between UK & France

1988-1994, 6,5B€)

The Great Wall of China

China

5th-16th century, 360B€

Güneydoğu Anadolu Pr.

Turkey

(1989-2013, 28B $)

Marmaray

Istanbul, Turkey

(2004-2013, 3B$)


Siemens Energy Projects in Turkey

Dinar WPP - 115MW

Güriş Holding A.Ş

50 wind turbines – in top 10 WPP

Ambarlı CCPP – 1350MW (1988)

EÜAŞ

The biggest natural gas power plant

in Turkey in 1980s

Bandırma II CCPP – 600MW (2016)

Enerjisa

One of the most efficient natural gas

power plant in Turkey (>60%)

Silahtarağa CFPP – 13MW (1913-83)

Ottoman Empire

The first fossil fuel power plant in

Ottoman Empire

Sugözü CFPP – 1320MW (2003)

Oyak

The first import coal fired power plant

in Turkey


Project Stakeholders

Within the team

• Project manager

• Team members (Commercial PM, time scheduler, quality mng, etc.)

Within the organization

• Internal customers (Other departments, etc)

• Project sponsor (Business Unit Manager, etc)

• Senior managers (CEO, CFO, etc)

• Functional managers (Line Manager, Group Manager, etc)

Outside the organization

• External customers (Owner of the project, etc)

• Collaborating organizations (Authorities, non governmental org,etc.)

• Affected organizations (Public, Local Residents, Competitors, etc)

• Vendors (Subcontractors, etc)


Stakeholders Analysis

Types of Project Organizations


Project Organization


Project Objectives

Specific

• Well defined

• Clear to anyone that has a basic knowledge of the project

Measurable

• Know if the goal is obtainable and how far away completion is

• Know when it has been achieved

Agreed Upon

• Agreement with all the stakeholders what the goals should be

Realistic

• Within the availability of resources, knowledge and time

Time-Based

• Enough time to achieve the goal



Project Objectives

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=&url=https://www.kerrysiggins.com/blog/a-goal-without-a-plan-is-just-a-wish-how-to-make-a-big-thinking-goal-happen&psig=AOvVaw1TvHIHM7ZOASsdym8nskeG&ust=1555415109447070

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=&url=https://www.kerrysiggins.com/blog/a-goal-without-a-plan-is-just-a-wish-how-to-make-a-big-thinking-goal-happen&psig=AOvVaw1TvHIHM7ZOASsdym8nskeG&ust=1555415109447070

Bandırma II Combined Cycle Power Plant Project


Technical Brief

Combined Cycle Power Plant Single Shaft Configuration


Technical Brief

Comparison SGT5-8000H vs. Porsche and Airbus A380

400 MW Power

= 1,300 Porsche 911 Turbo

= 10 Airbus A380 Jet engines

445 t mass

= 250 Porsche 911 Turbo

= 1 fueled Airbus A380

Energy supply

For a town with 2.4 million people

or for 727,000 househoulds

1,500º CFiring temperature

Melting point of iron:

1,535º C

10,000 gCentrifugal force on

a turbine blade

on a jet pilot: 7 g


Project OrganizationStakeholders

Owner

Üretim A.Ş.

Contractor

Open Consortium:

SAG, SAGÖ and STR

Germany

Consortium Lead

AustriaSanayi ve Ticaret A.Ş.


Project OrganizatonSiemens Overall Project Organization

~20 People~50 People

~ 5 People

~60 People from 28

different countries

TOTAL: ~140 People

+ ~40-50 Designer SPEL (India) + 1300 workers, 51 subcontractors

3,7million manhourSiemens Gas and PowerApril 2019

Scope of Supply

SAG & SAGÖ Scopes Siemens A.Ş., Turkey

Scope of Supply:

Power train (GT, ST, generator incl. aux.)

HRSG

Water steam cycle incl. pumps

Air Cooled Condenser (Blades, gear boxes etc..)

Electrical equipment (transformers, IPB, swg etc.)

I&C equipment

BoP systems & equipment

Scope of Supply:

CIVIL

Earth Works

Main Civil Works

Steel Structure

Design&Construct – Workshop & Gatehouse

400kV HV Switchyard Civil Works and Control Building

Landscaping

Road Works

Rain Water Corridor Works

MECHANICAL

Site Erected Tanks

HRSG Erection

Turboset – Mechanical BoP Erection

Cranes

Air Cooled Condenser, Fin Fan Cooler

Auxiliary Boiler & Erection

Water Treatment Plant

Fire Fighting System

Fuel Gas System

Piping, Insulation, Heattracing

Elevator Erection, Chemical Cleaining, Painting

Scope of Services:

Project management (lead)

Engineering

Time scheduling, contract management

Supply management (offshore)

Logistics

Scope of Services:

Project Management

Engineering HV switchyard

Consultant Services (ATEX, CEMS, Natural Gas System, etc)

Site management (incl. EHS)

Erection works, incl. TFAs

Commissioning, incl. TFAs

Warranty Engineer (2yrs.)

ELECTRICAL

400kV HV Switchyard Electrical Works

Communication & Security System

Lighting and Small Power System

Electrical and I&C BoP Erection


Project Key Figures 1/2

>23.000m3 Concrete

~1900 concrete trucks

9.200 tons Steel

Structure

~1.2x Eiffel Tower

>2.000.000 m3 Earthworks

~100.000 load trucks

400 km Cables

~ from İstanbul-Ankara


https://www.google.com.tr/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwifspCx8InRAhVeNVAKHUHBCsQQjRwIBw&url=https://commons.wikimedia.org/wiki/File:Eiffel_blue.PNG&psig=AFQjCNGcILeQ7Y6f6LCjeU3feoF0s-jYoQ&ust=1482567418453852

https://www.google.com.tr/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwifspCx8InRAhVeNVAKHUHBCsQQjRwIBw&url=https://commons.wikimedia.org/wiki/File:Eiffel_blue.PNG&psig=AFQjCNGcILeQ7Y6f6LCjeU3feoF0s-jYoQ&ust=1482567418453852

Project Key Figures 2/2

61 Onshore Contracts

49 Different Suppliers

More than 1.500 Purchase Orders

More than 10.000 invoices

1200 deliveries from

16 different countries

10.681 letters to subcontractors

1600 official letters to customer

3’7 million manhours

9700 punch items

5000 worker files


Main Challenges

Delay in works Additional supervisors and manpower

Payment Problems

of Subcontractor

Shorten payment term

De-scoping

Subcontractor’s

Bankruptcy

2nd subcontractor as back-up

Continue with back-up to minimize impact to project


Project History – 2014


Project History – 2015


Site View


Long Term Service Agreement

Sugözü CFPP – 1320MW


Unit 10 Unit 20

Turbine Geno Turbine Geno

2010 Module II Module V

2011 Module II Module V

2013 Module I Module V

2014

Module I

Module IIIa

Module IVa

Module VIII

Module V

2015

Module IIIa

Module IVa

Module IX

2017 Module IIIb Module VI

2018 Module IIIb Module VI

2019 Module IVb

Modules

I Minor HP+IP+LP1+LP2

II Major LP2 Minor HP+IP+LP1

IIIa Major LP1

IIIb Major IP Minor HP+LP2

IVa Major LP2

IVb Major HP Minor IP+LP1

V Minor Geno

VI Major Geno

VII Yearly Check

VIII Site Mng +Infrastr 2014

IX Site Mng +Infrastr 2015

Customer:ISKEN Enerji Üretim ve Tic

LTSA: From Jan 2009 to Jan 2020

Open consortium of STR and SAG

Scope: Maintenance Services for 2 Steam Turbines and 2 Generators

Site Infrastructure, Field Service Personnel – Onshore (STR)

Parts, Rental Tools, Engineering – Offshore (SAG)


Delay in works Good preparation for the scope

Preparation for emergency cases

Main Challenges

Claim

Management

The Claims and Change Management Process was established:

Training of the core project team (Site Management, Commercial Site Manager, PM Turkey, PM Siemens

AG) took place prior to the outage

Claims and Change Management Process presented and agreed with customer prior to outage

Commercial Site Manager was at site to track and separate all the working hours

All additional working hours have been signed off by the customer during the outage

Pro-active sale of additional scope prior to outage

Full customer acceptance during the invoicing process of the LTP-Scope, Change Order Scope and Claims

High customer satisfaction

Create a Project (Exercise Step-1)

Project: Planning of 2019 Summer Holiday

(Time-Cost-Quality, ‘SMART’, Location etc...)


Project Management Steps and Processes

Initiating

•Project purpose and objectives

•Draft Scope and Schedule

•Terms and Conditions

•Budget Estimate

•Selection of Project Manager

•Create Project Charter

Planning

•Final Scope

•Select Team Members

•Plan Deliverables

•Baseline Schedule (Activities&WBS)

•Baseline Budget

•Quality Plan

•Risk, Issues, Opportunities

•Roles and Responsibilities,Communication

•Design

•Production of Deliverables

•Time & Cost & Quality Mngm.

•Controlling & Monitoring

•Risk & Issue Mngm.

•Change Control

•Reporting

•Communication

•Project Handover

•Contract Close out including Financial Closure

•Celebrate!

•Team Feedback

•Customer Feedback

•Lessons Learned for Further Projects and Improvement

Execution,

ControllingClosure


A Guide to the Project Management

Body of Knowledge (PMBOK® Guide) is

PMI's flagship publication and is a

fundamental resource for effective

project management in any industry.

Onion Syndrome

Project Management ProcessesPM@Siemens

Initiating Planning Executing&Controlling Closing

Project

Opening&

Clarification

Detailed

Planning

Purchase/

ManufactureDispatch

Construction/

InstallationCommission Acceptance

Project

Closure

Project Execution @ SIEMENS


A Guide to the Project Management

Body of Knowledge (PMBOK® Guide) is

PMI's flagship publication and is a

fundamental resource for effective

project management in any industry.

Project Management Topics



Contract Management


“A well-negotiated contract utilizing Siemens expertise – as well as a committed project team actively working with the contract – will lead to customer satisfaction and is a major defense against Nonconformance Costs (NCCs).“

• Contract Reading Workshop

• Know your contract

• Define risks and

opportunities

• Contracts are designed for bad

days

• Know your responsibilities

• Know your customer’s

responsibilities

• Terms & Conditions

• Commencement of Works

• Advance Payment

• Payment Security


Procurement and Logistics Management


“Excellent project procurement and logistics has a fundamental impact on a project’s success. That’s why it is imperative to carefully judge the capabilities of the suppliers and establish a target-oriented collaboration“

Purchasing Conditions

• Scope

• Incoterms

• Payment Terms

• Price

FINANCIAL KPI’s

WBS

STRUCTURE

SALES

MARGIN

COSTSALES PRICE

= REVENUE

MONTHLY

FORECASTORDER

ENTRY

CALCULATION

CLAIMCASH

FLOWWARRANTY

COST

IMPROVEMENT Non- Conformance

Cost (NCC)

RISK &

OPPORTUNITY

Risk&Opportunity ManagementWhat is “Risk”?

Risk is the likelihood an event will occur

and cause a consequence/deviation in

the project; Risk may interfere with

successful completion of the project; has

a negative impact on project costs.

Opportunity has positive impact to the

project results if it can be realized.

Project risk management is a

comprehensive approach for identifying,

evaluating and responding to those risks

that could affect the achievement of targets

of the project.


Risk&Opportunities

Risk management is an ongoing process which consists of the following elements:

Identify and document risks

Define expected probability and potential

impact

Define/plan measures

Implement measures

Manage and monitor the risks and defined

actions regularly


Risk Analysis

FINANCIAL KPI’s

Key Project Deliverables

Defined project management topics and key project deliverables

* Bid strategy

* Bid Work Breakdown Structure

* Bid time schedule

* Bid project description

Contract Management Plan* Change log / register

* Claim log / register

Requirement and Deliverable Management Plan

* Project Work Breakdown Structure

* Division of Responsibilities

* Requirement collection (including break down and structure)

* Requirement traceability matrix

* (service projects) Service Concept

Resource Management Plan

* Project Organizational Chart

* Resource plan

* Project Target Agreement

Time Management Plan * Project Time Schedule

Cost Management Plan

* Offer calculation

* Order Entry Calculation

* Ongoing Calculation

Siemens

Project

Management

Plan

Quality Management Plan

* Non conformance log

* Test plan

* Design freeze agreement

* Quality Plan

* Milestone / Quality Gate Documentation

Risk and Opportunity Management Plan * Risk and opportunity register

Procurement and Logistics Management Plan

* Supply chain / logistics concept

* List of Suppliers

* Procurement Plan

Communication and Collaboration Management Plan* Stakeholder register

* Communication matrix

* Document list

* Configuration list

Environment Health and Safety Management Plan* Environment protection, Health management and Safety plan

* Site procedures

Learnings in Project Management Plan * Lessons Learned

Controlling and Updating Management Plan

* Project Overview

Project overview

and

bid deliverables

Documentation Management Plan

Procedures

Key project deliverables

We want to mention...

Agile Project ManagementControl of projects and processes in a dynamic and flexible manner.

Characteristics of agile PM are:

- People and communication are more important than processes and tools

- Efficient software is more important than extensive documentation

- Close collaboration with the customer is more important than extensive contract negotiations

- Immediate reaction to necessary changes is better than adhering strictly to a plan

Bar Chart/Gantt Chart A graphic display of schedule-related information. In the

typical bar chart, activities or other project elements are

listed down the left side of the chart, dates are shown across

the top, and activity durations are shown as date-placed

horizontal bars. Also known as Gantt Chart. This bar chart

shows that activities 1 and 2 define the critical path (no

buffer). Activities 3 and 4 are not connected to the other

activities. Activity 3 is needed for activity 4 and both are

required for the project result.

Critical Path The series of activities that determines the duration of a project. In a deterministic model, the critical path is usually

defined as those activities with float (=buffer) less than or equal to a specified value, often zero. It is the longest path

through the project. Critical resources are the bottleneck resources used on the critical path.

Follow-Up / (Exercise Step-2)

Project: Planning of 2019 Summer Holiday

(Risks, Opportunities, Stakeholders etc...)


Project Management International Organizations

(IPMA, PMI , PM@Siemens)

IPMA (International Project Management Association)

http://www.ipma.world

PMI (Project Management Institution)

http://www.pmi.org

PM@Siemens

Siemens participates on corporate level in a dialog with both IPMA and PMI to improve

cooperation, to address Siemens points of interest for future development of project

management and to find ways of cooperation to bring the Siemens-internal project

manager certification closer to the approaches of the external institutions.


http://www.ipma.world/

http://www.pmi.org/

PM Career Path in Siemens

Project

Practitioner

Project

Manager Small

Projects

Project

Manager

C Projects

Project

Manager B/C

Projects

Project

Manager A/B/C

Projects

Experience in

Project team or

in Managing

Small Projects

Experiences in

Managing

Small Projects

Experiences in

Managing C

Projects

Experiences in

Managing B

Projects

Project

Manager Small

Projects

Project

Manager

Senior Project

Manager

Project Director

~ 1-2 years ~ 1-2 years ~ 3 years ~ 6 years

Certified Certified Certified


The Review Board will expect your presentation to cover as a minimum:-

Outline of contract, customer, project goals and objectives and major challenges

Risks and issues and how they were overcome

Your approach to change and claim management

Your approach to leadership and structure of the project team

Key financial and other Key Performance Indicators

Your approach to project governance

Your project planning approach

Key stakeholders and how they were identified

PM Career Path in Siemens

Project Management

Wrap-Up

Open Job Position@Siemens

What do I need to qualify for this job?

* Bachelor’s Degree in Engineering Field

* Minimum 2 years of experience in Project Management

* Basic level of knowledge in Autocad or similar software

* Advanced level of knowledge in MS Office Applications

* Knowledge in Project Management tools and processes

* Knowledge on compliance, negotiation and communication

methods, change& claim management, risk& opportunity

management, Health & Safety Regulations will be an asset

* Excellent command of English (German will be an asset)

What skills make the best project managers so good?

1.Communication: listening, persuading, negotiating

2.Organizational: planning, goal-setting, analyzing

3.Team building: empathy, motivation, team spirit

4.Leadership: sets example, energetic, vision, delegates,

positive attitude

5.Coping: flexibility, creativity, patience, persistence

6.Technical: experience, project knowledge

Key Words of Project Management

Contract Order Stakeholder Team Customer Subcontractor Owner Cost Calc.

Supplier Risk Oppurtunity Claim Negotiation Schedule Milestones Delay

Penalty Warranty PAC Bonds FAC Satisfaction Complaint Budget


Last but not least...

A Project Manager shall:

Make sure that the project has been properly

initiated before passing to the execution phase.

Actively monitor and control his/her project through

till closure.

Make sure that project has sufficient number of

resources and competencies.

Ensure that project team is committed on the

project targets and communicating each other.

Control and monitor risks and issues regularly with

the project team.

Manage expectations of the Stakeholders; inform

them regularly and transparently.


“Project Managers are the most creative

professionals in the world;

we have to figure out everything that could go

wrong, before it does.”

*Fredrik Haren

Author and speaker on Business

Creativity,

Author of “The Idea Book”


References&Sources

PM@Siemens Guide

PM@Siemens

Siemens Turkey NC Management Principles Manual

Project Management Body of Knowledge, fifth edition – PMI

Management and Organizational Behaivor – Jayantee (Mukherjee) Saha

Brief History of Project Management – Young Hoon Kwak

The Story of Managing Project – Quorum Books, 2003

www.newgensoft.com

alwinco.co.za

www.datasciencespa.com

www.sumit4all.com

www.techlearning.com

www.wikipedia.com

www.projectsmart.co.uk/

www.umsl.edu

http://www.enerjiatlasi.com/

https://consultantpert.wordpress.com/2015/12/21/avoid-these-seven-basic-mistakes-while-

handling-projects/


http://www.sumit4all.com/







http://www.newgensoft.com/

http://alwinco.co.za/case-studies/security-risk-assesment-methodology/


http://www.datasciencespa.com/


http://www.techlearning.com/


http://www.wikipedia.com/

https://www.projectsmart.co.uk/

http://www.projectsmart.co.uk/

http://www.umsl.edu/~sauterv/analysis/488_f02_papers/ProjMgmt.html

http://www.umsl.edu/



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