115511 Shell Global Solution - Flawless Project Delivery Program

7/23/2019 115511 Shell Global Solution - Flawless Project Delivery Program

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Shell Global Solution

Flawless Project Delivery Program

Wolfgang PROBST, Shell Global Solutions - Malaysia



2© Transfield Worley Services 2009

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Agenda

1.) Introduction of the Presenter

2.) What is Flawless –What are Flaws ?

3.) Consequences – What can go wrong ?

4.) Typical Flaws

5.) When to do What - Front-End-Loading?6.) Plant Performance –Typical vs. Flawless

7.) Implementation Sequence

8.) How to start –The 11 Q’s

9.) Flawlist Methodology

10.) Generic Flawless Delivery Road Map

11.)Elements of Q-Assurance Plan

12.)Q-Captains Action

13.) Generic Q-Captain Road Map

14.) Flawless Delivery Q-Assurance Tool

15.) Conclusion

16.) Where it went right

17.) Sakhalin Energy –as an example





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Introduction of Presenter

Introduction of the Presenter:

Wolfgang PROBST

Shell Global Solutions (Malaysia ) Snd.Bhd. – Kuala Lumpur

Operations and Asset Management Consultant





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What is Flawless ? – What are Flaws ?

All projects have “flaws” (Organisation, People, Assets)

Most flaws present themselves in Start-Up Phase (on critical path)

Many flaws are similar and repeats of other projects

The effect of flaws results in• Culmination of delays

• Increased risk for failures with high severity impact

• loss of production, HSE, business, reputation

DevelopMitigation

Recoverymeasures

Barriers

AssessRisk

IdentifyFlaws

DevelopMitigation

Recoverymeasures

Barriers

AssessRisk

IdentifyFlaws





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Consequences – What can go wrong:

Avoiding problems:

Chemicals complex, cleanliness problems – rework and production losses >$30 million

Chemicals complex, prototype effluent water handling – repairs($3 million), production loss >$20 million and additional operating costs (> $2 million per

month) Refinery, start-up delays caused by instrumentation problems – production losses >>$60

million

Refinery, inadequate cleaning followed by wrongpreservation – rework and production losses(delay) worth >$100 million

Improving on performance:

In addition: Structuring the work-processes: time-saving typically more than one month, worth>30 million US$





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Typical Flaws:

Leaking flanges/valves, gasket failures, wrong or no gaskets, misaligned flanges,cross contamination of liquids,

Blocked fine bores…filters, burner tips, instrument tappings catalyst beds,

Non functional systems, equipment, instrumentation, components

Poor or in-operability of systems, equipment….many alarms, trips etc

Incidents with HSE consequences

Non recognition ofnew technology, new equipment, new components

Non recognition ofcomplex systems requiring significant organisational input etc

Lack of sequenced testing of components, equipment systems, units

Inexperienced organisation or inexperience on new unit/system/equipment





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When to do What ….. Front-End-Loading:

More than50%of flaws originate from the development phases.

Resolution clearly requires back integration of these flaws into

early project phases….lessons learned. Clearly if these flaws remain until last project phases then

significant delay and cost will be the result.

45%

Det Eng/Proc/ConstrEPC

40%

PSPS

10%

Comm/SUCSU

5%

Scout/BOD/BDP





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100% 100%

OIP/FPD focus needed in

the project phases with

highest influence and

impact

OIP/FPD focus needed in

the project phases with

highest influence and

impact

Scouting BOD/BDP BDEP/PS EPC CSU

Progress

Cost of changes

Influence

over cost





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Good project definition and execution

Good project definition and poor project execution

Poor project definition and good project execution

Poor project definition and poor project execution

A

B

C

D

A

B

C

D

Poor definition

Good definition

Poor execution

Good execution

Poor execution

Good execution

FRONT-END DEVELOPMENT

V a

l u e

VALUESCOUTING REALISATION95% costs5% costs

BOD/BDP EPCSCOUTING CSUBDEP/PS

B





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Plant Performance – Typical vs. Flawless

Reputation

HSE

$$$

Reputation

HSE

$$$

P l a n t P e r f o r m a n c e

CSU - first year(s) of operation

Flawless Project Delivery and Operation

Typical Plant

Performance

Curve over time

“Target date for production”





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Implementation Sequence:

Scouting(Identify / Assess)

1. Introduce Flawless in owner org.

FED1(Select)

FED 2/3 (EarlyDefine - Define)

Detailed Eng.(Execute)

Procurement

(Execute)

Construction(Execute)

Commissioning &SU (Operate)

2. Roll out Flawless in owner & FEED contr org.

3. Roll out Flawless in owner & FEED contr org.

4. Roll out Flawless in E&P Organisation

5. Roll out Flawless in Procurement

6. Roll out Flawless in Construction

7. Execute Flawless in Commissioning & SU





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How to start …… The 11 Q’s

K P I

Tightness

Cleanliness

Integrity

Operability & Maint

HSE in transition

Novelty

Complexity

Testing

Competency&Experience

Coinciding Events

S t r u c t u r e

R & R

C o m p .

I n f o

D a t a

A s s e t R e l a t e d

S c h e d u l e , P r o j e c t m a n a g e m e n t

Business Controls

Information & Data





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Generic Flawless Delivery Road Map:

Agree Operations,

Maintenance and

CSU philosophy’s

Set /Agree

Performance

Expectations

Identify risks

& Flaws

Organise

Mitigation or

Back-up

Track

Implementation

on measures

taken

Correct

and

Improve

Apply

Practices

Worth

replicating

Key Performance Area’s

KPI’s, “Cook-book”.

Generic Flaws listingNovelty/Complexity workshops

Mitigation Plans, Q-cases

Best Practices (e.g.

Systemisation),

Lead indicators

Health checks,

Measurement Tools.





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Elements of the Q Assurance Plan:

Strategypolicy & objectives

Organise

Set standards

Prepare

Control

Monitor

preparations

Executeplans

Monitor

execution

Final review

Correct

Improvenext project

Flawless Start-up policy

Operations Implementation Planning

Key success areas 11 Q’s

Project objectives and targets

Key Quality Area - KPI

Organisational structure

Clear R&R Competence, Experience, Training

Documentation and its control

Task breakdown (procedures/work instructions)

Job aids, checklists, critical tools and information

QA/QC controls and measurement points Test protocols

Test and inspection points (number of tests

and inspections per item, sample size..)

Test and inspection criteria (for both performing

the activity/task and acceptance/rejection of)

Allowed rejection rates

Rejection rate for up scaling of action

T y p i c a l c o n t r o l s





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Q-captains action:Q Roadmap

Project KPIs

FPD -area

Flaw database per Q-Area

FPD per Q-area

Actions for Q-captain-

FPD LIs per Q-Area

FPD KPIs per Q-Area

Top-Down: KPIs translated into Q-Area LIs with action plan to keephealthy

Bottom-Up: Detailed flaws to be

mitigated





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Conclusion:

Each project phase can produce flaws

If these flaws are not identified within the project phase in which they occurthen they get passed onto the next project phase….they may or may not becaptured in the next phase

If flaws remain until the CSU project phase then schedule delays andadditional rectification costs will be incurred. In many cases these will besignificant

Delays = lost revenue = not recoverable for project economics

The best method of identifying these flaws is from past projectsand lessonslearned i.e. backward integration into the project phases

Clearly a structured process is needed to assist in identifying and mitigating

against these flaws.

Q Roadmap





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Results – Where it went right:

PER+, Shell Pernis, refinery expansion (Hydrocracker, Gasification, Powerplant)

Shell Chemicals, Styrene Monomer and Propylene Oxide manufacturing,Moerdijk (Netherlands) and Singapore

Shell Chemicals, Nanhai project (China) – new petrochemical complex

Malampaya – Shell project, Philippines, onshore gas plant

Athabasca Oil Sands, Canada – extension of the Refinery to process

PDO (Oman), Harweel and Qarn Alam, Gas processing facil ities

Sakhalin Energy Russia( OPF, BS2, LNG, Pipelines, All offshore Installations )

LNG projects (Oman, Nigeria, Australia, Russia)

Sabic (Saudi Arabia): United (Jubail), Yansab(Yanbu), Saudi Kayan (Jubail), Ar

Razi (Jubail), all petrochemicals





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Sakhalin Energy – As an Example

Why has it been such a success:

1.) Competent Assessment

2.) Management Commitment

3.) Sponsors Funding

4.) Superiors Support





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Sakhalin Energy – As an Example

SEIC OPF “ Flawless” Team:

Superiors: Wim Stel / David DeJong ( Site Manager )

Sponsors: Karl Johnson ( Dty.Commissioning Manager ) + Wolfgang Probst ( Dty Site Manager )

Execution: SEIC OPF Commissioning Team + Commissioning Management

Assessment: Peter van Brussel / Marco Houterman –Shell Global Solutions Malaysia





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115511 Shell Global Solution - Flawless Project Delivery Program

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