Execution of LSTK / EPCC Projects
Hydrocarbon Mid & Downstream
By :
L&T Hydrocarbon - HMD
EPCC / LSTK Project -
Is a unique endeavour
Is designed to achieve a agreed objective/s
Requires a variety of resources
Needs to be completed within specified time &
cost
Hydrocarbon Mid & Downstream
Project Management An art & science of converting vision into reality
Application of knowledge, skills, tools & techniques
Involves stages - Initiating , Planning, Executing,
Controlling and Closing
Hydrocarbon Mid & Downstream
PROJECT STAKE-HOLDERS
Owner
Licensor
PMC
EPCC / LSTK Contractor
Vendors / Subcontractors
Service Providers
Hydrocarbon Mid & Downstream
CUSTOMER EXPECTATIONS TODAY:
Concept to Commissioning
Facilitate & Suggest
No hassles & worries of monitoring
No running around vendors
No multiple disputes & legal battles
No sleepless nights
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LSTK Concept Advantages to OWNER
Comprehensive
Guarantees
Optimum
Completion
Time
Reduced
Organizational
Resources
Minimal
Risk
Committed
Cost
Single
Point
Responsibility
Coordinated
Design & Engg.
7
Hydrocarbon Mid & Downstream
LSTK A Global Trend
LSTK is a global trend, because of:
Single point responsibility
Comprehensive guarantees for performance
Minimal risk exposure to Owner
Use of core competency of Contractor
Coordinated efforts, lesser site modifications
Better involvement of Owner in Key functions
Minimum organization resources by Owner
Hydrocarbon Mid & Downstream
LSTK MODEL
Project Management Team
Owner
Throughout All
Phases of the
Project
PMC
Project Definition Phase
Process Licensor
EPC Implementation Phase
EPCC Contractor
Vendors
(1,2,,n)
Hydrocarbon Mid & Downstream
Construction
Sub-contractors
(1,2,,n)
9
PROJECT PHASES
Responsibility
EPCC
PMC
Technology Selection
Process Package Dev.
Tender Preparation
Owner
FEED Package
Detailed Engineering
EPCC
Procurement
Construction
Controlled By
Licensor
PMC
Commissioning
Licensor
Performance Run
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Pre-order Stage
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11
PROPOSAL PREPARATION
Understanding Customer Requirements
Study of Engg. Specifications / Clarifications from PMC
Basic System Configuration & Design
Parametric Comparison & Value Engineering
Project Cost Estimation
Study of GCC / SCC
Assessment of Risks & Deviations
Learnings from Past Projects
Technical Proposal Preparation
Preparation of Execution Plan & Project Schedule
Preparation
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Execution Phase
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PROJECT COMPLETION MILESTONES
Bid Closing
Date
Zero
Date
Zero Date
Mechanical
Completion
48
36
30
Commiss
Commg.
ining
RFSU
RFSU
PGTR
PGTR
Provisional
Final
Initial
Final
Acceptance
Acceptance
Acceptance
Acceptance
36 Months
120 Days
12 Months
Bid
Bid Validity
Validity
Warranty
Warranty
Period
Period **
12
12 Months
Months
Typical project with 36 months PAC
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PROJECT MANAGEMENT
Blue Print
Plant
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Project Management Philosophy
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Project Task Force
Executive Sponsor
Support Team:
Project Manager
IT & EALPS:
HSE Manager
Project Control
Manager
QA & I Manager
Dy. Project Mgr Dy. Project Mgr
Piping & Packages
E&I
Project Engg
Manager
Contract
Manager
Planning
Engineer
DyPEM
Project Procur
.
Manager
Procurement
Team (PPC)
Res. Constn
. Commissioning
Manager
Manager
Construction
Team(HCP)
Cost Control
Engg
Team
Qty Controller
Document
Controller
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EXECUTION STRATEGY
Establishing work centres
Strict adherence to specifications, codes/standards, local
bye-laws and regulations
Early ordering of LLEs
Global sourcing
Construction driven Engineering & Procurement
Adherence to Highest HSE and Quality Standards
Close interaction with Owner/PMC to resolve issues
Effective Interface with other agencies / contractors
On-time delivery of a safe and trouble free plant
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HSE Management System Framework
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Strategic HSE Objectives
Organisational Culture
Legislation and Standards
Systems & Procedures
Occupational Injury or Illness
Performance Data & Analysis
Risks to People & Environment
Training & Motivation
Contractors Engagement
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HSE Implementation
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Overview of Quality Management
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Accreditation
ISO 9001
OHSAS 18001
ISO 27001
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ISO 14001
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QA-QC Interface in Project Execution
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PLANNING & MONITORING
Project Network (L3 & L4 levels)
Monitoring of Intermediate Milestones
Engineering
Procurement
Construction
Pre-commissioning and Commissioning
Detailed schedule for
Critical Manufacturing
Packages
Heavy erection
Systems/Sub-systems for PC/Commissioning
Recovery Plans
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PROJECT STAGES
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PROJECT PLANNING
Micro Planning
on Primavera
110.00
100.00
90.00
80.00
Cum Orig Fronts
70.00
60.00
Cum Target
50.00
40.00
30.00
Cum Actuals
20.00
10.00
0.00
15-Nov-02
15-Dec-02
15-Jan-03
15-Feb-03
15-Mar-03
15-Apr-03
15-May-03
15-Jun-03
15-Jul-03
15-Aug-03
15-Sep-03
15-Oct-03
15-Nov-03
15-Dec-03
15-Jan-04
15-Feb-04
15-Mar-04
15-Apr-04
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Month Act
0.00
0.17
0.72
1.59
2.60
4.28
3.55
4.47
3.48
2.99
3.43
6.17
Cum Orig Sch.
0.00
0.02
1.39
3.78
7.18
11.25
16.19
21.79
27.49
33.37
39.60
46.01
52.59
59.99
67.47
74.60
81.64
87.90
Cum Org Est Fronts
0.63
2.36
4.48
8.52
14.60
21.57
28.05
36.09
43.46
53.52
59.74
67.49
74.61
81.69
87.92
93.32
96.91
98.50
Cum Targets
20.33
25.01
30.29
37.47
40.48
48.20
55.82
63.28
70.73
77.89
Cum Projected Fronts
30.09
36.71
43.54
48.30
54.20
62.87
70.71
44.60
Cum Actual Fronts
0.00
0.44
4.85
7.46
13.32
14.44
19.66
22.61
30.09
35.37
37.23
Cum. Act.
0.00
0.17
0.89
2.48
5.08
9.37
12.92
17.38
20.87
Month
Act
23.86
27.29
Month 33.46
Cum
Orig Sch.
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DETAILED ENGINEERING
Design Basis Report
Time Schedule for Detailed Engineering
Early Release of Specifications for procurement of LLEs
Perform Design/HSE Reviews (HAZOP / 3D Model)
Conduct Engineering Studies (HAZID / SIL / SAFOP)
Generation of Accurate & Matching Bill of Material
Release of Construction Drawings (AFC), as scheduled
Co-ordination with Owner and PMC for Reviews / Approvals
System Integration
Field Engineering & Commissioning Support
As-built Documentation
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Design Reviews
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Engineering Audit Process
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Constructability Reviews
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Value Engineering
Identification and prioritization of opportunities where quantity
/ specification could be optimized leveraging engineering
competencies without compromising the basic technical
requirement
Work shop is conducted at 2 phases
During the Proposal Stage.
At the start of Project Execution
Identify and
prioritize area
where value
engineering
possible
Disciplines/Task
Force Members
are encouraged
to come up
with VE ideas,
in addition to
the databases
Work shop with all
task force members
to decide timeline,
implementation
feasibility &
expected benefits
for VE ideas
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Track
implementation
of the VE ideas
and measure
actual VE
benefits
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Integrated Engineering Through 3D Modeling
PIPING MODELING
INSTRUMENT
MODELING
PROCESS
2D
ENVIRONMENT
PDS 3D MODEL
FIRE FIGHTING
MODELING
ELECTRICAL
MODELING
CIVIL AND
STRUCTURAL
MODELING
EQUIPMENT
MODELING
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PDS MODEL (TYPICAL REFINERY UNIT)
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Knowledge Management
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Supply Chain Management
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Supply Chain Management
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Supply Chain Management
Ordering as per Engineering Specifications
Matching Deliveries as per Project Schedule
Ordering as per schedule & within budget
Expediting through network / agencies
Addressing Quality Requirements
Inspection Co-ordination
Supplier Relations
Timely Deliveries at Site
Vendor support during pre-commg and commg
Spares Management
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Global Sourcing
Sourcing of materials, Equipment and services from qualified &
approved vendors
Evaluation of vendors based on
Past Experience
Price Competitiveness
Quality
Delivery
Reliability
After-Sales-Service
Indigenous/Global sourcing
Through State-of-the-Art SAP system
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Global Sourcing for ongoing Job
EUROPE 6.6%
USA 5%
(France, Germany, Italy,
Spain, UK, Belgium,
Netherlands, Sweden)
Piping, Static, Instruments,
Electrical, Rotary, Packages
Static, Packages,
Instruments, Piping
Japan 14%
South Korea 9%
Rotary
Static, Packages, Piping
Singapore 0.1%
INDIA 64%
Instruments
Packages, Static, Piping,
Rotary, Structural,
Instruments, Electrical
Malaysia 0.1 %
Static
Others 1.2%
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Ordering Cycle
Issue of
MR
Approval
of MR
Enquiry
Floating
Offers
Receipt
Issue
of
TBE
Technical
Query
Approval
of TBE
Issue Award
Recomendation
Approval of
Award
Recomendation
Issue of P.O
Issue of PR
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Logistics Management
Preparation of Project Specific Logistic Plan comprising the following:
Route survey report
Port of import in country of project.
Recommended mode of Transport for Materials & Equipment
Shipment Execution & Monitoring
Receipt date at site based on the committed dispatch date.
Selection of Freight Forwarder based on Geographic Location
Schedule for contract award for LSP / Freight Forwarders
Progress reporting Freight Forwarder
Format for overall Progress Report and frequency of updation
L&T has a dedicated Logistics Management Centre & a team of
Logistics Specialists
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CONSTRUCTION
Establish Site Infrastructure at early stage
Construction Management
Progress Monitoring & Control
Generation of sequential & parallel work-fronts
Full utilization of SAP, e-Alps, easy-TRACK, MOSS, Spool-gen
& Punch-Mon systems
Resource mobilization & Effective Utilisation
Parallel working
Strict HSE Compliance
Adherence to Quality Standards
Compliance with Statutory Regulations
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Site Infrastructure
The mobilization phase
involves meticulous planning and
establishment of infrastructure to handle the quantum of work
and the challenges. The following is generally planned:
o Project Office with VC facility and hot linked to design and PMT office.
o Site establishments like Consumable Store, Piping storage yard, Labourcolony with all amenities and hygiene facilities etc.
o Rebar service center, Batching Plants, Carpentry Work shop and P&M
Work shop
o Worker Canteen and Workers Rest Shed at site.
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CONSTRUCTION EXECUTION
Early start-up of Soil Investigation
Participation in constructability study
Focus on completion of UG works very early
Prefabrication of Critical Piping away from site
Continuous monitoring of 100% matching front
Aligning pre-fabrication of piping with erection fronts
Hanging platform beneath Pipe-racks for ease of AG
piping erection / other E&I works
Strict monitoring of RT works to avoid any pile up
Define hydro-test loops & Process systems in advance
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REACTOR ERECTION AT SITE
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COMMISSIONING
Pre-commissioning with objective of first time right start-up
Established work practices
High emphasis on HSE during pre-commg and commg
Thorough audit of construction prior to pre-commissioning
Pre Start-up safety audits
Inputs to models review, HAZOP studies, P&IDs review, SIL studies etc.
Accessibility, Operability, Maintainability studies during model reviews
On time support from vendors
Leverage from database of learnings from previous projects
Team of highly experienced Managers, Engineers & Operators
Project specific training for Engineers
Provide training to Clients O&M teams
Seamless alignment with Clients O&M teams during commissioning
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KEY SUCCESS FACTORS
Customer Delight : On time Completion
Right person at right place in right time
Prompt Decision-making
Optimum Engineering Solutions
Continuous tracking and monitoring
Timely Deliveries
Adherence to Highest Quality Standards
Implement best HSE Practices for accident Free
Execution
Risk Management
IT enablers
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Smooth Execution of a Project
requires complete commitment of
OWNER
LICENSOR
PMC
EPCC
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Thank You
DISCLAIMER
THE
CONTENTS
OF
THIS
PRESENTATION BEING DYNAMIC ,
IS SUBJECT TO CHANGE AND
ACCORDINGLY ADEQUATE CARE
MUST BE EXERCISED WHILE
MAKING ANY INFERENCE BASED
ON SAME.
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