Mitigating Risks for Large Scale Projects Involving Multinational Collaborations
Speaker : Pankaj Shah
March 26, 2013 | Author Confidential | Copyright L&T IES
Agenda
About L&T - IES Modularization Risk Management MNC Engagement Challenges, Risks & Mitigation Plans
Confidential | Copyright L&T IES
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About L&T - IES
Has been in Business over Seven (7) decades
#1 Integrated Engineering Service Provider ESO Black Book 2008 Asias Fabulous 50 Award Forbes 2008 Asias Leading Engineering and Construction Company
Heavy Engineering IT & Technology Services
LARSEN & TOUBRO LIMITED
US$ 13.7 Billion Engineering & Technology Conglomerate
Organizing 6 Business Groups
E&C Projects
Amongst Indias Top 5 companies in the private sector
Electrical & Electronics
Indias Best Managed Company BT Preferred Engineering Partners for 15 of our Top 20 Global clients 153 Strategic relationships and 12 JVs with global leaders Confidential | Copyright L&T IES
Machinery & Industrial Products
Construction
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About L&T - IES
Chairman and Managing Director
Electrical & Electronics Heavy Engg.
Process plant equipment business units Defense, Nuclear & Aerospace equipment Ship-Building Industrial Projects & utilities Sector Hydrocarbons & power Sector Power Transmission & Distribution Sector Electrical Standard Products Electrical Systems & Equipment Medical Equipment & Systems Metering & Protection systems Control & Automation Petroleum Dispensing pumps & Systems Industrial Machinery for Paper, Steel, Bulk Material Industrial Valves Larsen & Toubro Infotech Limited - Manufacturing - Banking & Securities - Insurance - Communications - Utilities
Engineering & Construction
Machinery & Industrial Products
IT & Engineering Services Finance & HR
Construction
Buildings and factories sector Transportation & Infrastructure Sector Hydel & Nuclear Power Sector
E&C Projects
Hydrocarbon sector Power Sector Cement & Mineral Projects
Rubber Processing Machinery
Welding Consumables Industrial Products Construction equipment
Integrated Engineering Services (IES) Mechanical Design Engg. Solutions Embedded Systems & Solutions
Process Cluster
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L&T Integrated Engineering Services : a snap shot
INDUSTRY SEGMENTS
Process Vertical CPG, Chemical, Metal & Minerals, etc.
Industrial Products & Machines
Aerospace & Automotive
Truck & Off Highway
Consumer Electronics & Medical Devices
SERVICE OFFERINGS Process Engineering Other Services
Product Engineering
Mechanical Engineering Electrical/Electronics Engineering Engineering Analysis (FEA/CFD) CAD Automation & Customization Application Software Development Software Testing & Test Automation
Manufacturing Engineering Plant Engineering (Process, Mechanical, Utility, Packaging, CSA, PCIS)
Sourcing & Costing Engineering Technical Publication Engineering Process Outsourcing
Asset Information Management Construction Engineering
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Agenda
About L&T - IES Modularization Risk Management MNC Engagement Challenges, Risks & Mitigation Plans
Confidential | Copyright L&T IES
March 26, 2013 | 6
Imperatives of Modularization
Project Type
Off-Shore (Oil & Gas) On-Shore (Oil & Gas)
Implementation
Mandatory Optional Preferred
When
Always Cost Savings Shorter Schedule Global Roll Out Common Engineering Standards Re-Application Advantage Time to Market Cost Quality Time to Market
On-Shore (CPG)
Large Process Plants
Optional
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Agenda
About L&T - IES Modularization Risk Management MNC Engagement Challenges, Risks & Mitigation Plans
Confidential | Copyright L&T IES
March 26, 2013 | 8
Risk Management
Prepare for Risk Management Determine Risk Sources and Categories Establish a Risk Management Strategy Identify and Analyze Risks
Define Risk Parameters
Identify Risks
Budget/cost risk Schedule Risk Performance Risk
Mitigate Risks Implement Risk Mitigation Plans Evaluate, Categorize, and Prioritize Risks
Develop Risk Mitigation Plans
Severity Determination Negligible (1) to Catastrophic (4)
Risk Probability Frequent (A) to Almost Impossible (F)
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Strategies for Mitigation
Changing or lowering the requirements while still meeting the users needs Minimize the risks by insurance/ forward cover etc.
Acknowledgement of the risk but not taking any action
Avoidance Acceptance Reduce
Transfer
Watching & periodically transfer the risk To stake other holders
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Agenda
About L&T - IES Modularization Risk Management MNC Engagement Challenges, Risks & Mitigation Plans
Confidential | Copyright L&T IES
March 26, 2013 | 11
MNC Engagement Model
Supplier - 1 Supplier - 2
Technology Supplier
Engineering Service Provider
Supplier - 3
Skid Manufacturer
End Users (EU)
EU - 1 Global Roll Out Leader EU - 3
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EU - 4
EU - 2
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MNC Engagement Model
Common Services
Supplier - 2 Supplier - 1 Supplier - 3 Supplier - 1 Supplier - 2 Supplier - 3 Supplier - 1 Supplier - 2 Supplier - 3
Module 1 Fabricator
Module 2 Fabricator
Module 3 Fabricator
Technology Supplier
Engineering Service Provider
End User (EU)
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MNC Engagement Model
Client
Europe
End User
PMC
DEC
NA
APAC
ASIA
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Agenda
About L&T - IES Modularization Risk Management MNC Engagement Challenges, Risks & Mitigation Plans
Confidential | Copyright L&T IES
March 26, 2013 | 15
Challenges, Risks & Mitigation Plans
Concurrent Engineering
Project Management & Procurement Schedule & Cost Control
Large Scale Projects Involving Multi National Collaboration
Effective Communication
Expectation Management Cultural Shocks/ Building Trust
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Challenges, Risks & Mitigation Plans
Concurrent Engineering
Potential & Feasibility Study Civil & Structural Piping Engineering Job-site Erection & Installation Plan
Job-site Logistics Survey
MODULAR ENGINEERING
Module Handling & Shipping Plan
Constructability Studies
Equipment Design
Electrical & Instrum. Plot - Plan & Layout Engineering
Fabrication Plan
Module Design Basis
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Micro - Level Engineering Detailing & Documentation
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Criticality of Procurement in Modularization Projects
Order Placement Material Requisition and Offer Review
Supplier Drawing Review Manufacturing
Layout requirements & constraints Vendor inputs and constructability Study Supplier Selection and Ordering
Inspection
Ty p i c a l Procurement Cycle
Installation Logistics Dispatch
Vendor interface and module layout finalization Early Manufacture and supply of equipment to Module yard Installation of equipment in module
Need to finalize equipment specifications and design at early stage of the project Impact of equipment design change on module layout and constructability Impact of equipment delivery on schedule of module assembly, module supply and site installation
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Subsequent Module Assembly work
Critical Procurement Aspects
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Effective Communication Amongst Multi-National Collaborators
Project Execution -Enabling
Specific construction standards pertaining to a region Value-Chain Enhancing Stamp of authentication on construction drawings Services
Detail Engineering
Periodic Project Progress Meetings
DCRs, NCRs
As-built
Kick-Off Meeting
Project Review Stage Gates
Review at Fabrication Stage
Testing Assly. Validation
Project Close Out
Specialized Engineering
Weekly update/review meetings Change management issues Coordination with plant schedules Identify plant representatives Design review process Design checking process Communication flow Conflict resolution Resource management
Re-visit Engineering post order placement
Logistics
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Logistics Related
Upto Site
Route Survey
Inside Plant Road Rail
Selection of Mode of Transportation
Sea / Inland Water
Air
Alternative solutions for Transportation
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Delivery of Equipment in Single Piece/ Sections
Clubbing of Equipment
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