project execution model
Short Description
aker kavner model...
Description
Aker Kvaerner Common PEM User Guide
AKER KVAERNER COMMON PEM – USER GUIDE
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CONTENTS
Page 1.0
Introduction to the Project Execution Model Initiative
3
2.0
PEM Planning and Control Structure
7
•
Strategic Level
•
Control Level • Control Level Key Activities Project Tendering Project Execution Project Management
•
Execution Level
3.0
Project Organisation
14
4.0
Description of the PEM – Strategic Level PHASES
15
5.0
Description of the PEM – Control Level STAGES
17
6.0
PEM Glossary of Terms and Abbreviations
23
Appendix A
Control Level Milestone Requirements – PROJECT TENDERING
Appendix B
Control Level Milestone Requirements – PROJECT EXECUTION
Appendix C
Control Level Milestone Requirements – PROJECT MANAGEMENT
AKER KVAERNER COMMON PEM – USER GUIDE 1.0
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INTRODUCTION TO THE PROJECT EXECUTION MODEL INITIATIVE Aker Kvaerner (AK) is a major contractor to the offshore and onshore industries, providing contract management, services, products and integrated solutions spanning the complete life cycle value chain across a wide variety of business sectors. For the purpose of successful execution and delivery, and not least as a result of the last few decade’s demand for engineering, procurement and construction (EPC) deliveries coupled with the industry’s requirement for control of costs, delivery time and quality, Kvaerner developed and documented an approach to project execution. In addition the merger of Aker Maritime and Kvaerner has contributed to a further improvement of this execution methodology and forms the basis for the Project Execution Model initiative in Aker Kvaerner (AK). This document is an introduction and summary of the AK approach for controlled execution of our projects. A model that is being rolled out across AK corporately for implementation by all business streams and their adaptation of the methodology to the requirements of the local contracting environment. The Project Execution Model (PEM) is the most important business initiative within AK and forms the basis for standardising our project execution methodology across our diverse business. It will also enable more consistent and improved performance towards satisfying our customer’s expectations as well as envisaged sustainable business presence in the markets we are currently participating. The foundation of the methodology is many years of experience with offshore and onshore industry projects from all over the world and not least the recent execution of several major EPC projects. A significant experience in this context is the knowledge of the actual project costs, how these are distributed and relate to the various activities over time and the processes influencing the end cost of the product. The figure below illustrates typical costs experienced with major “Harsh Environment” projects. As seen, half of the cost lies with procurement, some 30-40% with construction and only some 10% with engineering. However, at the same time investigations show that the influence of engineering over the end cost of the product is 90%, whilst the similar influencing power for procurement, construction and installation is around 5%, 3% and 2% respectively. From this it is evident that although the expenditures of costs are much larger in later phases, the possibility to influence the end (product) cost during the late phases is very limited.
AKER KVAERNER COMMON PEM – USER GUIDE
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A similar picture emerges from the Construction Industry Institute’s gathering of information from 700 major projects in “North America”, where the ability to influence the end cost was plotted against time, identifying the period during concept & system definition, i.e. prior to committing to major purchases, as “the Critical Performance Period” during which end cost could be influenced significantly.
AKER KVAERNER COMMON PEM – USER GUIDE
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The “Harsh Environment” and the “North America” figures give the same message – ‘it is the depth and quality of the project definition work during the early phases that decide success or failure.’ This is especially so for the cost aspect discussed here, but experience shows that other areas such as safety, project schedule and product quality very often follow a similar pattern. The main lesson is therefore: Invest in the period prior to the heavy investment in the form of time & man-hours (i.e. in project definition) and harvest the benefits at the tail end of the project. Translating this learning into practical application is a challenge AK has taken on when developing a systematic approach to the execution of projects. In this methodology AK has captured the need for giving focus to the early phases, in parallel with understanding the need for a continuous focus towards the end product as well as constantly ensuring that engineering is fit for construction, commissioning and operations. Further it should be noted that the methodology is equally adaptable to all project activities as the methodology outlines the path followed by most projects. To take on the challenge of giving sufficient focus and attention to the early phases, coupled with the required focus towards the end product, including construction and operational requirements, AK has subdivided the project life cycle into 6 execution phases.
The objective of this project execution model (PEM) and the breakdown into these six phases is to improve quality, timely delivery and profitability, by • • • • •
Providing management attention to critical activities and emphasis vs. the end result and timely delivery, throughout the project duration. Subdividing the project into phases controlled by milestones. Specify strict quality requirements for each milestone, which eliminates the transfer of work from one phase to the next Focus on inter-discipline dependencies to ensure quality in all parts of the project Optimise the transfer of information from one project participant to another
AKER KVAERNER COMMON PEM – USER GUIDE • • • • • •
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Specific attention to systems throughout the project life cycle When appropriate, dividing the product in part (sub) projects with clear objectives and scope of work definition. Organising multidiscipline teams, for the individual phases and Subprojects respectively, accountable for budget adherence, timely delivery and quality. Empowerment of teams Standardisation and reuse of solutions, products and execution processes, Providing a sound basis for experience transfer.
PEM im provem ent process PEM Phase & Stage Descriptions
Business Area PEM Cham pion
Project 1
Approval by AK PEM Netw ork/ Steering Com m ittee
AK PEM Introduction 9th April 03
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Im proved PEM Descriptions
Project 2
Project 3
Recom m endation by Business A rea PEM Cham pion
AKER KVAERNER COMMON PEM – USER GUIDE PEM PLANNING AND CONTROL STRUCTURE
The link between the different work processes on a project is ensured through the PEM. The PEM provides linkage between different disciplines and the different phases of the model and is broken down into three levels, Strategic, Control and Execution as indicated in the figure below.
Aker Kvaerner PEM FEASIBILITY & CONCEPT
Strategic level:
SYSTEM DEFINITION
DETAILING & FABRICATION
SYSTEM COMPLETION
ASSEMBLY/ ERECTION
TENDER & KICK-OFF
Control level:
Major Milestones
Executionlevel: level: Execution SYSTEM DEFINITION PHASE - STAGE 3 Review issue P&ID Level 3
3.3 L03
Produce System Isometric (Relevant Systems)
Vendor Info. Inline Instruments
P&ID Level 3
Piping & Layout Review P&ID Level 3
Update Piping Database Level 3
Pipe Support Design Level 3
Update MTO/ (Material Quantity Budget) Level 3
Issue Stress ISO
Weight and COG Piping Level 3
Specify remaining Special Items
3.3
HSE Verification Level 3
3.3 L12
Freeze Info all Equipment >=1tonn
Commissioning Limits (P&ID & Line List)
EXECUTION
3.3 L11
Business Areas
3.3 L14
Overall Method for Installation/ Pre-fab.
3.3 L15
3.2
3.3 L04
CONTROL
3.3 L10
STRATEGIC
Corporate
Operational & Maintenance Review Level 3
Technical input PO remaining Special Items
Model Review Level 3
Part Product Phase
3.3 L16
NO
Material Quantity Simulation Level 3
3.3 L17
Piping Design Level 3 & Clash Check
Critical Line
3.3 L07
Detailed Piping Fabrication Method
3.3 L02
3.3 L01
Requisition Piping & Valves
YES
Planning
Stress Calculation
3.3 L06
Specific work processes, systems & procedures
Prepare Test Definition
3.3 L05
Projects
Equipment Modelling Level 3
3.3 L08
3.3 L13 Model Review Level 2
3.3 L09
2.0
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To Stress ISO Report in Part Product Phase
Input to Structural
Weight Control
Call Off
Global Integration
AK PEM Introduction 9th April 03
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Strategic Level The highest level in the PEM is the phase arrow, which is termed the Strategic Level. Every project master schedule will reflect this level of the model. Control Level The next level in the model is termed the Control Level in which the Strategic Level Phases are further sub-divided into stages. There are mandatory milestones for each stage. Main interfaces to internal and external entities are also included in this level. The Control Level describes the sequence and completion level of multitasks through; • •
The major stage milestones within each phase Quality Levels and key deliverables for each stage
The Control Level is also reflected in the project schedule in the form of allocated milestone dates and gate reviews.
AKER KVAERNER COMMON PEM – USER GUIDE
M ile s to n e s : CONCEPT CO MPLETE
G L O B A L D E S IG N COM PLETE
P R E A S S E M B L IE S READY FO R S H IP M E N T
M E C H A N IC A L COM PLETE
C L IE N T TA K E O V E R
M 2C
M 3C
M 4C
M 5D
M 1D
F E A S IB IL IT Y & CONCEPT
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SYSTEM D E F IN IT IO N
D E T A IL IN G & F A B R IC A T IO N
ASSEMBLY/ E R E C T IO N
SYSTEM C O M P L E T IO N
TENDER & K IC K -O F F
S U B M IT K IC K -O F F TENDER COM PLETE
P h a s e a n d s ta g e tra n s fe r th ro u g h 攖o ll g a te s ? h a v in g s tric t re q u ire m e n ts w .r.t. q u a lity , s c h e d u le a n d c o s t Key Activities Key activities are major work tasks carried out throughout the project lifecycle. The control level defines the quality requirement for each of the key activities (deliverables) for each PEM milestone. The key activities are presented in three ‘Modules’ Project Tendering; Project Execution and Project Management. Project Tendering Applying the PEM approach to the tendering process will deliver a well defined and clearly understood project scope. The Tendering and Kick-Off phase has its own set of Key Activities covering both Project Execution and Project Management Activity. This reflects the smaller, multi-discipline teams which will normally be involved in the tendering process. The stages and milestones within the Tender and Kick-Off Phase reflect the mandatory requirements of Group Policy 3.1 Tendering and Project Contract Risk. Progress through the Tender and Kick-Off Phase is controlled through Aker Kvaerner’s web based support tool the ‘Risk Dashboard’. The control level Project Tendering Key Activities and milestone requirements are as displayed in the following ‘Champagne Diagram’:
AKER KVAERNER COMMON PEM – USER GUIDE
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Project Tendering
Control Level Milestone Requirements / Quality Levels DM Risk Policy Decision Milestone
(DM1)
(DM2)
(DM3)
(DM4
(DM5)
AKER KVAERNER COMMON PEM – USER GUIDE
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Project Execution The control level Project Execution key activities quality requirements are displayed in the following ‘Champagne Diagram’
PROJECT EXECUTION Control Level Milestone Requirements / Quality Levels
AKER KVAERNER COMMON PEM – USER GUIDE
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Project Management Module The Project Management Module comprises those project activities associated with organising, monitoring and controlling the delivery of the work scope. Again, the Key Activities reflect multidiscipline activities to be delivered in a co-ordinated way in the correct sequence. Thus, the work of several disciplines / departments / work processes will be required to achieve the milestone requirements for any particular Key Activity. The Project Management Control Level Key Activities and Milestone Requirements are displayed in the following ‘Champagne Diagram’.
PROJECT MANAGEMENT Control Level Milestone Requirements / Quality Levels
AKER KVAERNER COMMON PEM – USER GUIDE
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The project management will on a continuous basis follow up, review and check the activities of the project. To facilitate this process the appropriate tools and systems are available to report status, events and project future development, to evaluate deviations from original plan and to make and take decisions that need to be implemented.
Project Management… . Tools for control and monitoring: Proj Schedules Interface Control Budget/Cost Change Control Event/Risk Reports
Management evaluation of deviation and risk:
Management Decision:
Quality
Econom y
Progress
Decision
AKER KVAERNER COMMON PEM – USER GUIDE
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Execution Level The content of the Execution Level reflects the individual business and is thus not common. The Execution Level is the third level in the PEM. The execution level encompasses multifunctional work processes with flow sheets as well as milestone activity descriptions, check lists and quality requirements. Activities are smaller work tasks and related deliverables that make up a key activity. The activity descriptions reside within the activity flowcharts and detail the input and output, checklist and procedural definition of the activity and tools required to perform it. The Execution Level is the basis for the development of the network in the project programme. A typical structure for the execution level is indicated here:
Milestone
Gate Review Report
Stage Objectives
Milestone Requirements
Key Activities M1A
Phases
Key Activities
Concept Execution
P&ID,Line List & MEL EIT Databases& registers
Procurement
1st priority Equipment 2nd priority Equipment 3rd priority Equipment Bulk Material/MTO
Layout and 3D Model Sub Contracting 1st priority subcontracts 2nd priority subcontracts
M1C
M1D
M2A
FEASIBILITY & CONCEPT QL1
HSE in Design System Engineering
M1B
QL2
QL3
M2C
M2B
M3A
SYSTEM DEFINITION
M3B
M3C
M4A
M4B
M4C
M5B
M5C
M5D
SYSTEM COMPLETION
ASSEMBLY/ ERECTION
DETAILING& FABRICATION
M5A
Key Activity
QL4 QL1
QL2
QL1
QL2
QL1
QL3
QL1 QL1
QL2
QL1
QL2
QL1
QL2
QL4
QL3
QL2 QL3 QL3
QL1
Completion
QL1
QL5
QL5
QL5
QL4 QL4
QL4
QL5
Q5
QL5 QL6
QL5
QL6
QL6
QL3 QL2
Fabrication/Construction
QL5
QL5
QL4
QL3
QL2 QL2
QL1
QL4
QL3
QL2
QL1
QL3
QL2
QL2
QL3
QL3
QL4
QL5
QL4
QL5
QL4
QL3
QL6
QL4
QL5
QL4
QL5
QL7
QL5
Discipline Gate Review Summary Reports
QL7
QL6
QL7
Action List
D i s c ip l i n e
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D i s t r i b u t io n : P r o je c t m a n a g e r L e a d e n g in e e r D is c i p l i n e m a n a g e r G a t e R e v ie w t e a m Q A m a n a g e r
Piping Quality Level descriptions
Electrical Instrument Control Object checklists
Mechanical Civil Structural HVAC Architectual
AK PEM Introduction
Existing Procedures or “Discipline knowledge base” or Governing documentation
AKER KVAERNER COMMON PEM – USER GUIDE 3.0
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PROJECT ORGANISATION The PEM is a product, sequence and phase-oriented model. Hence the tasks to be performed vary throughout the execution, responding to the requirements of the respective phases. This implies that the project organisation must be dynamic and be adjusted to suit the requirements within each phase. The project management functions covered by the management team and key management personnel remain intact throughout all project phases in order to provide continuity and keep full focus on the final product. However, the teams physical composition, location, organisational structure and emphasis will reflect the phase, scope of supply, business strategies and associated challenges. The project organisation will complete work meeting respective PEM milestone and quality requirements before or at the end of each PEM stage. Further the organisational structure and composition will again reflect the scope of work to be performed, the phase in question as well as the overall business strategies in place. The project management will on a continuous basis follow up, review and check the activities of the project. To facilitate this process the appropriate tools and systems are available to report status, events and project future development, to evaluate deviations from original plan and to make and take decisions that need to be implemented. One of the important elements of project management & control which PEM brings is the requirement to identify where the PEM milestones will occur on the project and to check & verify progress at these milestones prior to proceeding further. This check & verification process is referred to as a ‘PEM Gate Review’. Projects are required to establish at the outset a ‘PEM Strategy’ which will set out when & how Gate Reviews will be organised. Consideration will be given to the significance of individual milestones to determine an appropriate level of scrutiny and who should conduct the review. The capabilities of the project organisation are very important for the successful outcome of the project execution. The attitudes and cultural elements are therefore given high visibility in the training of AK personnel and during project execution. Integral to the AK approach is to: • • • • • • •
Focus on the totality (end product) rather than sub-optimisation Be solution oriented Be proactive rather than reactive Keep a hands on attitude, at the same time as ensuring that tasks and decisions are performed on the most appropriate level Focus on actions required to solve and overcome challenges Solve problems now rather than wait until it may be too late Be accountable through delegation of complete tasks and accompanying authority
AKER KVAERNER COMMON PEM – USER GUIDE
SECTION 4.0 DESCRIPTION OF THE PEM STRATEGIC LEVEL PHASES
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AKER KVAERNER COMMON PEM – USER GUIDE
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PEM STRATEGIC LEVEL The top level – ‘Strategic’ – is divided into several phases. The phases in the strategic level represent how a general project progresses from start towards the end result. There are 5 sequential phases as follows: • • • • •
Phase 1 – Feasibility and Concept. Phase 2 – System Definition. Phase 3 – Detailing and Fabrication. Phase 4 – Assembly/Erection. Phase 5 – System Completion.
Aker Kvaerner may be involved in some or all of these phases dependent on the individual project. In addition there is the Tender and Kick-Off Phase. This phase is mandatory for all projects, irrespective of which sequential phase (1-5) the actual project execution starts from. The strategic level is shown simply in the diagram below:
AKER KVAERNER COMMON PEM – USER GUIDE
SECTION 5.0 DESCRIPTION OF THE PEM CONTROL LEVEL STAGES
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AKER KVAERNER COMMON PEM – USER GUIDE
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PEM Control Level - Tender & Kick-Off Description Pre-qualify for all targeted projects and thereafter prepare a winning tender with an acceptable risk exposure and profit potential. Provide firm schedules, technical and commercial basis for start up of the project in accordance with established Aker Kvaerner methods and procedures. Evaluate, decide and obtain approval to bid. Pending a positive decision to bid, prepare tender documentation and get the required approvals. Review and identify design basis maturity vs Aker Kvaerner Project Execution Model (AKPEM) and shape scope accordingly. Submit tender to the client. Negotiate and sign contract for the work tendered. Hand-over to the project execution team, including: start up and mobilisation plans project execution strategy and organisation descriptions project financing plans project risk assessment project baseline schedules and budgets The phase includes Kick-Off of the project based on administrative and technical start-up packages. Complete design basis to the nearest milestone of the Aker Kvaerner Project Execution Model (AKPEM). From this milestone onwards the project follows the standard phases of the AKPEM.
Key Stage Objectives Receipt of (ITT) Invitation to Tender TENDER PHASE START
BID / NO BID
SUBMIT TENDER
SIGN CONTRACT
KICK-OFF COMPLETE
MTC
MTD
MTE
DRAFT TENDER MTA
Tender phase
Stage TA
POSITIONING Key Stage Objectives • Business Development • Prospect ID & Screening • Perform KT Analysis • Check Core Capability & Strategy Profile (CCSP) • Client Contact/Objectives • Winning Strategy • Partners & Scope • Identify Tender Accountable • Prequalification
ASSESS Key Stage Objectives Project Execution • Concept/Feed/Design • Maturity Check Project Management • ITT review • Tender cost, schedule and budget • Update KT Analysis • Check Winning strategy & cost vs Client objectives/ budget • Initial project execution strategy • Update risk register • Nominate Tender Team • Bid/No Bid
MTB
TENDER & KICK OFF Stage TB
PREPARE Key Stage Objectives Project Execution • Verify/Develop Scope of Work for Project Execution Project Management • Mobilise tender team & Kick-off • Tender Execution Strategy, budget and plan • Project Execution Strategy &t Schedule • HSE program • Estimating/Weight & Cost • Define Org. / Nominate Key Project Personnel • Pricing/Compensation strategy & Formats • Tender clarific./ qualific’s • Risk Analysis • Draft Tender
Stage TC
APPROVE Key Stage Objectives Project Execution • SOW Verified and Project Execution approved Project Management • Tender Document Review & Management Approvals • Project Execution Strategy, Organisation & Project Team • Cost estimate & Cash flow • Schedule / Manpower Projection Plan • Contract: Terms & Conditions • Sub-Contracts: Terms & Conditions • Negotiation Mandate and Team • Risk Management • Risk Register • Contingency determination • Price/compensation formats • Group Risk Committee review (if required by policy)
Stage TD
NEGOTIATE Key Stage Objectives Project Execution • Bid Clarifications Project Management • Negotiations • Bid clarifications • Update: - Key data - Price - Contingency - Risk Analysis - Execution Plan • Management approval • Contract ready for signature • Prepare Hand-over to Project Team
Stage TE
KICK-OFF
Key Stage Objectives Project Execution • Tender Team Hand-over • Scope of Work Start-up Plan • Design Basis Alignment Project Management • Mobilise Project team • Tender Team Hand-over • Client Kick-off Meeting(s) • Project Start-up Plan (Mgmt) • Internal Kick-off meetings • Teambuilding
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PEM Control Level - Feasibility & Concept Description - Phase 1 Develop the best possible business case and winning solution for the client. The phase is also referred to as the “value-engineering” phase. The concept to be used is selected in this phase and thereby the project CAPEX and OPEX levels are defined (+/- 50 to 20 %), which then can be compared to the product income levels.
Scope: Selection of an optimal concept solution based on frozen and proven functional requirements, leading up an agreed and firm design basis Perform technical/economic optimisation of the selected concept to achieve a best for purpose technology, price and delivery time Identify a project execution strategy & plan based on the common AKPEM including a strategy for procurement & subcontracts Establish a cost budget and ensure a manageable execution risk for all parties
Key Stage Objectives ALTERNATIVES GENERATED M1A
Phase 1 Stage 1A
OPPORTUNITY APPRAISAL
Key Stage Objectives Project Execution • Define HSE Requirements • Identify product, markets • Establish possible process solutions • Identify infrastructure requirements • Identify environmental requirements • Identify key process/ product interfaces Project Management • Evaluate business opportunity • Establish first cost estimate
FEASIBLE CONCEPTS SELECTED M1B
CONCEPT SELECTED
CONCEPT COMPLETE
M1C
M1D
FEASIBILITY & CONCEPT Stage 1B
FEASIBILITY STUDIES Key Stage Objectives Project Execution • Define HSE goals • Perform preliminary simulation & flow diagrams • Size Key equipment • Layout block model and unit arrangements • Define preliminary construction methods • Identify major completion aspects affecting the concept selection Project Management • Establish general execution philosophy • Define screening criteria • Update cost estimate • Rank alternatives • Perform Risk assessment
Stage 1C
CONCEPT SELECTION Key Stage Objectives Project Execution • Perform HSE studies to verify the concepts and Environmental Impact assessment for permitting • Consolidate the final design basis. • Optimize Process/System simulation and flow diagrams • Size remaining equipment and add to equipment list • Optimize overall layout including safety assessment • Update Constr. and Compl. methods • Evaluate Local requirements • Define Site enabling preparation criteria Project Management • Develop overall execution schedule • Establish preliminary Project Execution Strategy • Update cost estimate • Determine Sourcing categories and scenarios • Update Risk assessment, concepts
Stage 1D
CONCEPT DEFINITION Key Stage Objectives Project Execution • Update HSE Studies and analyses and prepare Environmental impact report • Freeze functional requirements, design basis, overall system description and layout • Update Equipment list, flow diagrams • Prepare electrical Single Line Diagram Prepare preliminary P&IDs • Inquire 1st priority equipment POs • Finalize Overall Layout and unit arrangement • Update Construction and Completion methods • Site enabling subcontract package complete & awarded • Define Local requirements Project Management • Pre-qualify Main Sub-Contractors • Finalise Project Execution Strategy • Establish cost estimate • Update Risk assessment • Prepare preliminary detailed project schedule
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PEM Control Level - System Definition Description - Phase 2 The main objective of the System Definition Phase is to detail the concept and freeze system design, implement vendor information and complete the area design to a level where the interfaces between the systems and various areas are frozen. Procurement activities including order placement and vendor follow-up performed according to technical input and project requirements to enable freezing the design. All external interfaces with design impact shall have been included in the design and confirmed frozen by the other party. Subsequently, by end of this phase, the layout is frozen and "clash free”, final detail engineering can proceed independently for the respective areas and fabrication and assembly/erection documentation can be prepared. System design with focus on operability and maintainability with all safety aspects analysed and mitigating measures incorporated in the design shall have been performed . Working environment analyses, reviews and inspections to achieve arrangements for a safe and worker friendly environment done. Equipment and bulk materials sufficient to meet engineering supplier information and site need requirements procured. All requirements for subcontracting, manufacturing or temporary facilities shall have been included. Establish Methods for fabrication, assembly/erection and completion established and method requirements implemented in the design. Boundaries established and frozen and management of interfaces towards subcontractors and other contractors identified. Weight and cost budgets verified and likewise for contract milestones and detailed construction schedules.
Key Stage Objectives
M1D
Milestone M2A Critical POs Awarded
Milestone M2B Layout and Main Structure Frozen
Milestone M2C Global Design Complete
Phase 2: System Definition Stage 2A: SYSTEM DEFINITION
Stage 2B: SYSTEM DESIGN & LAYOUT DEVELOPMENT Key Stage Objectives Key Stage Objectives Work Scope Work Scope HSE and safety risk HSE and safety risk assessment, preliminary assessment checked First vendor information for 1 First vendor information for Priority PO’s implemented in 2nd Priority PO’s implemented in System System Engineering Engineering P&ID’s, Line List , MEL , EIT P&IDs , MEL, EIT registers/databases and registers/databases and 3D 3D model model Procurement Procurement; 2nd and 3rd priority equipment PO’s 1st priority Equipment PO’s awarded, First bulk material awarded orders out Subcontracting plan & Subcontracting; 1st priority strategy complete subcontract issued, 2nd Fabrication/Construction priority subcontracts draft methods and draft plan Completion established and draft preparations
Stage 2C: GLOBAL DESIGN Key Stage Objectives Work Scope HSE and safety risk assessment frozen Frozen vendor information for all PO’s implemented in System Engineering P&ID’s, Line List, MEL, EIT registers/databases and 3D model Procurement; All equipment PO’s awarded, all bulk materials orders placed Layout and 3D model are Clash free, Ready to outfitting details, All major interfaces frozen Subcontracting; 1st priority subcontracts awarded, 2nd priority subcontracts issued
AKER KVAERNER COMMON PEM – USER GUIDE
Project Management Prepare and verify project schedule and cost estimate QA plan established Quantity and weight baseline & trending program
Project Management Prepare Detailed Deliverable Schedule and update current cost estimate HSE program for engineering and procurement in place
Page 21 Subcontracting; 1st priority subcontracts awarded, 2nd priority subcontracts issued Completion preparation substantially complete Project Management Verify Contract Milestones and Detailed Construction Schedule and update current cost estimate HSE program for construction in place
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PEM Control Level - Detailing & Fabrication Description - Phase 3 The main objective of this phase is to complete detail design, prepare fabrication and construction documentation and fabricate and finalise part assemblies and modules Mechanical Complete. Finalise detail design with all vendor information implemented and material take off done. Perform and issue work preparation documentation. Perform fabrication activities according to established methods. Mechanical complete product(s) ready for assembly/erection, including equipment packages. Verify the detailed schedules for the assembly/erection phase and ensure that all relevant site activities are documented MC complete.
Key Stage Objectives DETAIL DESIGN COMPLETE & SUBCONTRACTS AWARDED M2C
PRE FABRICATION & MANUFACTURING COMPLETE
PREASSEMBLIES READY FOR SHIPMENT
M3B
M3C
M3A
Phase 3 Stage 3A
DETAILING & FABRICATION
DETAIL DESIGN & SUBCONTRACTING
Key Stage Objectives Project Execution • HSE risk assessment complete • Close out HAZOP action items • Final vendor information from all PO’s incorporated in System Engineering and layout / 3D model • System Engineering & Layout / 3D model documentation issued for construction • Material take off finalised and bulk material top up orders placed • 2nd priority FC Subcontracts awarded • Hook-up/Commissioning Subcontracts inquired • Completion requirement incorporated in fabrication documentation • Issue P& IDs IFC • Issue Isometrics IFC Project Management • Milestones and Detailed Construction Schedule verified. • HSE program for construction and completion in place
Stage 3B
PRE FABRICATION & MANUFACTURING
Key Stage Objectives Project Execution • Engineering databases complete • All fabrication Bulk Material delivered • Shop engineering detailing and work preparation for fabrication • Pipe spools, Steel sections and Concrete sections prefabricated. • Deep/major foundations & trenches completed. • Construction site temporary facilities completed • Hook-up/Commissioning Subcontracts awarded Project Management • Update cost, schedule & risk program
Stage 3C
FABRICATION Key Stage Objectives Project Execution • Layout and 3D Model as build mark up of part assemblies/modules • All Bulk Material available to support the Assembly / Erection sequence • Part assemblies and modules/package units fabricated and mechanically complete • Commissioning commenced on selected systems Project Management • Update cost, schedule & risk program
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PEM Control Level - Assembly/Erection Description - Phase 4 The objective of this phase is to assemble the various parts products to a complete facility/product. Major equipment, pre- assemblies and modules are transported to site and installed. The construction work is MC complete & quality records available. Final insulation done and labelling & identification complete. All systems shall be ready for commissioning and commissioning can commence on selected systems. Surplus material definition and realisation started. Detailed schedules for the completion phase verified.
Key Stage Objectives ALL PREASSEMBLIES POSITIONED
ALL ASSEMBLY WORK COMPLETED
MECHANICAL COMPLETE
M4A
M4B
M4C
M3C
Phase 4
Stage 4A
ASSEMBLY / ERECTION
TRANSPORT & POSITIONING
Key Stage Objectives Project Execution • Temporary Services & Power Distribution in place and Site roads complete up to subbase. • Major equipment, Pre- assemblies & modules transported to site and final positioned. • On site fabrication and erection of major vessels and process equipment. • Main Structures & Bridges Complete Project Management • Update baseline and current cost estimate • Establish HSE requirements for Assembly & MC stages
Stage 4B
ASSEMBLY Key Stage Objectives Project Execution • Major equipment, Pre- assemblies & modules assembly installed. • Install Balance of Plant Equipment and interconnecting piping systems. • Minor structures, E& I installation and Main insulation complete. • Final Labelling & Identification started. • Operation & Maintenance Manuals available. Project Management • Update baseline and current cost estimate and System Hand-over Schedule • Implement HSE requirements
Stage 4C
MECHANICAL COMPLETION
Key Stage Objectives Project Execution • Relevant as built mark-up complete • Construction work mechanical complete & quality records available. • Categorised Punch lists for all systems. • All systems ready for commissioning and commenced in accordance with system completion schedule • Final Insulation, Labelling & Identification complete. Project Management • Update baseline and current cost estimate • Establish HSE program for system completion phase
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PEM Control Level - System Completion Description - Phase 5 The objective of this phase is complete the Contract Object in accordance with agreed schedule, quality and budget. Perform and finalise all commissioning activities. Ensure that any temporary items are removed and update relevant documents with “as commissioned” information. Perform the required preparations for start-up. Formalise the Operational responsibilities and start production and performance testing. Complete hand-over documentation, verify warranties and guaranties and sign-off on Acceptance Certificate Establish experience data with Project Execution plan “as built” with lessons learned and relevant metrics for quantity/weight & productivity
Key Stage Objectives SYSTEMS COMMISSIONED M4
OFFSHORE INSTALLATION COMPLETE M5B
M5A
Phase 5 Stage 5A
COMMISSIONING Key Stage Objectives Project Execution • Perform and finalise all commissioning activities. • Preparations for start-up • Temporary items removed. • Relevant documents updated with “as commissioned” information • Punch List cleared for start-up Project Management • Update baseline and current cost estimate • Implement HSE requirements
START-UP COMPLETE
TAKEOVER COMPLETE M5D
M5C
SYSTEM COMPLETION Stage 5B (Offshore Projects)
OFFSHORE INSTALLATION
Key Stage Objectives Project Execution • Preparation for sail away • Perform tow out • Complete installation of substructure / moorings / tethers • Complete installation of the production facility • Document offshore installation/hookup work MC complete • Offshore commissioning Project Management • Update baseline and current cost estimate • Implement HSE requirements
Stage 5C
Stage 5D
START-UP
TAKE-OVER
Key Stage Objectives Project Execution • Operational Responsibilities formalised. • Introduction of feedstock • Start production • Performance testing Project Management • Implement HSE requirements
Key Stage Objectives Project Execution • All work completed • Update relevant documentation (as built) • Complete hand-over documentation • Punch lists cleared Project Management • Warranties and guaranties sign-off on Acceptance Certificates • Project Execution plan “as built” with lessons learned • Metrics for quantity/weight & productivity • Total HSE program implemented
AKER KVAERNER COMMON PEM – USER GUIDE
SECTION 6.0 PEM GLOSSARY OF TERMS AND ABBREVIATIONS
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PEM TERMS
Strategic Level
1. • • •
•
PEM: Project Execution Model Phase: The Project execution is divided into stages with Milestones at regular intervals Stage: Further work breakdown of a Phase, represented by key events or objectives in a project’s lifecycle. The Stage is characterised by the activities prior to reaching its milestone. Milestones: Start and end of each stage within the Phase. A milestone is characterised by its multidiscipline nature. Milestones are measuring points where the combined effort from all the underlying activities meets the predefined milestone requirement..
Control Level
2. •
Key Activities: Deliverables grouped into a number of Key Activities for both Management & Discipline execution.
•
Quality Level: Defined grade of completeness for a Key Activity. A quality level chain is defined with description of grade of completeness for each quality level. Each quality level shall be achieved at certain major milestones.
Execution Level
3. •
•
• • •
•
•
•
Flow Chart: Flow chart diagram that describes the work flow within a discipline or management environment. The flow charts has input requirement & output data shown. The flow chart contains activity boxes. The activities are grouped in CTR’s (Cost Time Resources) and has an Activity Description defined for each activity. Cost Time Resources (CTR): DA group of Activities collected in a database for processing & planning of activities with man-hours and personnel categories linked to the activity. Also includes a summary of scope of work and deliverables. Activity Description: Description of each activity with name and no. Detailed description of scope of work to be performed and list of deliverables for each activity. Governing Documentation: Procedures, Work Instructions & Guidelines supporting the Flow charts work processes. Quality Level (QL) Description: Defined grade of completeness for a Key Activity deliverable. A quality level chain is defined with description of grade of completeness for each quality level. Each quality level is normally achieved at a certain major milestone. Control Objects: Each Key Activity deliverable is divided into several Control Objects that acts as information carrier (a set of information is linked to a control object) in a database or as a document or drawing. Status Level: Defines grade of completeness for a control object defined by the Quality Level (QL) Description. A status level chain is defined with description of grade of completeness for each status level. o S1 – Preliminary. o S2 – Released for Verification/ICD. o S3 – Frozen. o S4 – Detail Design Completed. o S5 – Fabrication and Commissioning Information Added. o S6 – Part Product As-Built Information Implemented. o S7 – Product As-Built Information Implemented. Check Lists: Gives the requirements at each Status Level for each Control Object. Key items is interface information to be used by other disciplines or customers.
AKER KVAERNER COMMON PEM – USER GUIDE PEM Abbreviations To be further developed. CCE COG CTR DFO DM EIT FEED GRC HVAC ITT LCI MC MEL OEM PCS PVC/PSV P & ID PO RDG
Current Cost Estimate Centre of Gravity Cost Time Resource Documentation for Operation Decision Milestone Electrical, Instrument and Telecommunications Front End Engineering Design Group Risk Committee Heating, Ventilation and Air Conditioning Invitation to Tender Life Cycle Information Mechanical Completion Master Equipment List Operation, Engineering and Maintenance Manual Plant Completion System Pressure Control Valve/Pressure Safety Valve Piping and Instrument Diagram Purchase Order Risk Decision Gate
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AKER KVAERNER COMMON PEM – USER GUIDE
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APPENDIX A CONTROL LEVEL MILESTONE REQUIREMENTS PROJECT TENDERING
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PROJECT TENDERING Control Level Milestone Requirements / Quality Levels
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PROJECT TENDERING – MILESTONE MTA Key Activity: Engineering Quality Level 1 • • • • • •
ITT and Scope of Work reviewed Client requirements for Engineering identified Functional and Technical requirements reviewed/identified Concept/FEED/Design maturity assessed against PEM requirements for all relevant engineering disciplines First Safety Assessment done Clarifications identified
Key Activity: Procurement Quality Level 1 • • • • •
ITT and Scope of Work reviewed Client requirements for Procurement identified Supplier Contract conditions and preferred Suppliers reviewed and identified Sourcing level estimated Clarifications identified
Key Activity: Sub-Contracting Quality Level 1 • • • •
ITT and Scope of Work reviewed Client requirements for Subcontracting identified Draft Subcontracting Strategy established Clarifications identified
Key Activity: Fabrication/Construction Quality Level 1 • • • •
ITT and Scope of Work reviewed Client requirements for Fabrication/Construction identified Draft Fabrication/Construction method established Clarifications identified
Key Activity: Completion Quality Level 1 • • • •
ITT and Scope of Work reviewed Client requirements for Completion identified System Design Maturity with respect to completion assessed Clarifications identified
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Key Activity: Tender Management and Administration Quality Level 1 • • • • • • • • •
ITT and Scope of Work reviewed Client administrative requirements for this Tender identified Receipt of ITT acknowledged Tender cost and budget established Tender strategy and schedule established Tender Manager & Tender Team nominated Project Risk Profile checked including Core capability & Strategy profile and Business norms Bid evaluation performed Bid/No Bid Decision, DM 2, made (ref. Risk Policy Appendix 4)
Key Activity: Project Execution Strategy Quality Level 1 • • • • • •
ITT and Scope of Work reviewed Client requirements for Project Execution identified Establish Initial Project Execution strategy Update Key Target Analyses (KTA) and assess winning strategy & project attractiveness (Ref. Core capability & Strategy Profile) Check winning strategy & cost versus clients objectives/budgets Confirm agreements with strategic stakeholders, partners and sub-contractors
Key Activity: Project Team Alignment/HR Quality Level 1 •
Key Activity: HSE Management Quality Level 1 • •
ITT and Scope of Work reviewed Client requirements for HSE (Health, Safety and Environment) identified
Key Activity: Cost Management Quality Level 1 • • • • •
ITT and Scope of Work reviewed Client requirements for Cost Estimating identified Compensation formats reviewed Tender cost estimate established Compensation strategy and format established
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Key Activity: Planning/Scheduling Quality Level 1 • • • • •
ITT and Scope of Work reviewed Client requirements for Planning/Scheduling identified Initial Project Execution Strategy reviewed Schedule proposal established Long Lead Item impact identified
Key Activity: Risk Management Quality Level 1 • • • • •
ITT and Scope of Work reviewed Client requirements for Risk Management identified Contract, Milestones and Schedule etc. reviewed Risk Analyses prepared and risks and opportunities identified Risk Register updated for: o External ( country, political, social) o Novelty ( technology, market, client) o Contractual & hand-over ( terms&conditions, claims, acceptance) o Financial ( cashflow, payment terms) o Contracting parties & terms ( client, consortium, major suppliers, subcontractors) o Health,Safety and Environmental (HSE) o Organisation and Human Resources o Construction/Siteworks o Scope and Project Execution capacity
Key Activity: Contract Management Quality Level 1 • • •
ITT and Scope of Work reviewed Client requirements for Contracts identified; o Contractual Terms & Conditions (T's & C's) o Price Formats Contracting strategy and possible partners and JV's (Joint Ventures) identified
Key Activity: Quantity & Weight Management Quality Level 1 • • • •
ITT and Scope of Work reviewed Client requirements for Weight & Quantity Management identified Weight Management Strategy established Master Equipment List (MEL) available
Key Activity: Information Management Quality Level 1 • • •
ITT and Scope of Work reviewed Client requirements for Information Handling identified Information Strategy initiated
AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Quality Management Quality Level 1 • • •
ITT and Scope of Work reviewed Client requirements for Quality Management identified Quality Management Plan & Strategy initiated
Key Activity: Continuous Improvement Quality Level 1 • •
Need for improvement within project identified Opportunities for improvement within project identified
Key Activity: Change Management Quality Level 1 • • • •
ITT and Scope of Work reviewed Client requirements for Change Management identified Change Management Strategy initiated Client change conditions identified
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AKER KVAERNER COMMON PEM – USER GUIDE
PROJECT TENDERING MILESTONE MTB Key Activity: Engineering Quality Level 2 • • •
• •
SOW for Project Execution defined and described for all engineering disciplines System and Area Design solutions reviewed Relevant Technical documentation updated o Functional and Technical requirements o Design and Layout documentation o Analyses and estimates Material take-off/estimates performed Input to organisation charts and MPP done
Key Activity: Procurement Quality Level 2 • • • • • •
Pricing strategy incorporated Procurement strategy established and competitive actions planned Supplier and Sub-Contractor checks and agreements performed Long Lead delivery times identified Strategic sourcing completed Input to organisation charts and MPP done
Key Activity: Sub-Contracting Quality Level 2 • • • • •
Sub-Contracting Scope of Work defined Site Facilities cost estimated Rate assumptions established Input to organisation charts and MPP done Facility description established
Key Activity: Fabrication/Construction Quality Level 2 • • • • •
Fabrication/Construction Scope of Work defined Site Facility cost estimated Rate assumptions established Input to organisation charts and MPP done Facility description established
Key Activity: Completion Quality Level 2 • • •
Project Completion Scope of Work defined Draft completion organisation charts established for all phases Input to project organisation charts and MPP done
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AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Tender Management and Administration Quality Level 2 • • • • • • • • • • • •
Tender execution strategy & schedule established Tender budget and schedule follow up Tender Team mobilised and tender Kick-off held Project key personnel nominated Project organisation charts prepared MPP (Manpower Projection Plan) established Sales strategy and success criteria established (ref. KTA) Project Risk Profile checked including Core capability & Strategy profile and Business norms Major Milestone review frequency decided Bid evaluation performed Tender clarification and notification administration established Tender compiled for approval
Key Activity: Project Execution Strategy Quality Level 2 •
Project execution strategy established including: o Engineering o Procurement o Contract & subcontracting strategies o HSE Programs o Fabrication & Construction o Completion o Schedule & milestones o Pricing/Compensation o Risk & Change Management o Work & Cost breakdown structure
Key Activity: Project Team Alignment/HR Quality Level 2 • •
Tender team alignment workshop(s) executed Project Management execution resources identified and part of tender & kick off team
Key Activity: HSE Management Quality Level 2 •
HSE Program established
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AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Cost Management Quality Level 2 • • • • • • •
Project cost estimate done Project pricing and compensation formats defined Sensitivity analyses performed Pricing assumptions finalised Compensation formats finalised Risk/reward scheme identified Cash flow developed
Key Activity: Planning/Scheduling Quality Level 2 •
Project Schedule completed including: o Key Activity Schedule o Procurement Schedule and Long Lead items o Contract Milestone Schedule o Mobilisation Schedule
Key Activity: Risk Management Quality Level 2 • • • •
Contractual qualifications identified and determined Risk analyses performed and Project Risk Profile established Risk Register including response planning updated Risk reporting prepared
Key Activity: Contract Management Quality Level 2 • • • •
Contract and Sub-Contract Terms and Conditions (T's & C's) reviewed Contracting strategy with partners & JV's chosen Contractual exceptions and clarifications identified Pricing formats complete
Key Activity: Quantity & Weight Management Quality Level 2 • • •
Weight Management Strategy complete; o Weight quantity breakdown defined o Weight and quantity allowances and contingencies identified Weight Estimates performed Weight Management decided
Key Activity: Information Management Quality Level 2 •
Information Management Strategy completed o IT/IS structure and plan defined o LCI (Life Cycle Information) draft defined o DFO (Documentation for Operation) draft defined
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AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Quality Management Quality Level 2 • •
Quality Management Strategy complete Quality Plan draft established
Key Activity: Continuous Improvement Quality Level 2 • • • • •
Continuous Improvement theme selected Continuous Improvement targets quantified Strategy for reaching targets identified Strategy for involving client identified Resources required to achieve targets identified
Key Activity: Change Management Quality Level 2 •
Change Management Strategy complete o Project change procedure outlined o Basis for Change Control established
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PROJECT TENDERING – MILESTONE MTC Key Activity: Engineering Quality Level 3 •
Scope of Work verified against engineering requirements and Project Execution approved
Key Activity: Procurement Quality Level 3 • • •
Scope of Work verified Project Procurement Strategy approved Project Sourcing Strategy approved
Key Activity: Sub-Contracting Quality Level 3 • •
Rate assumptions verified Scope of Work verified and Project Sub-Contracting Strategy approved
Key Activity: Fabrication/Construction Quality Level 3 • • •
Site facility cost verified Rate assumptions verified Scope of Work verified and Project Fabrication / Construction Strategy & Cost approved
Key Activity: Completion Quality Level 3 • •
Scope of Work verified and Project Completion Strategy & Cost approved Draft part system catalogue established
Key Activity: Tender Management and Administration Quality Level 3 • • • • • • •
Tender & documentation reviewed, DM 3, by management and approved for submission, DM 4 (ref.Risk Policy Appendices 2, 5, 6, 7 and 8) Group Risk Committee (GRC) meeting held as required Risk Classification completed (Low, Medium, High or Maximum Risk Project) Success criteria evaluated Negotiation mandate established Project organisation structure, chart, key Personnel and MPP approved Formal approval of tender and tender documentation complete
Key Activity: Project Execution Strategy Quality Level 3 •
Project Execution Strategy and Plan approved and ready for implementation
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Key Activity: Project Team Alignment/HR Quality Level 3 •
Key Activity: HSE Management Quality Level 3 •
HSE Program approved
Key Activity: Cost Management Quality Level 3 • • • • • •
Cost estimate approved Cash flow approved Pricing assumptions & Pricing approved Contingency and Profit level determined Risk/reward scheme approved Compensation format completed
Key Activity: Planning & Scheduling Quality Level 3 •
All relevant Project Schedules approved
Key Activity: Risk Management Quality Level 3 • • •
Contingency determined based on identified exposure Risk Register including response planning approved Risk reporting approved
Key Activity: Contract Management Quality Level 3 •
•
Contract: o Contracting strategy approved o Terms and Conditions (T's & C's) approved o Qualifications approved Subcontracts: o Terms and Conditions (T's & C's) approved o Critical subcontractor commitments made
Key Activity: Quantity & Weight Management Quality Level 3 •
Weight and weight breakdown approved, including weight allowances and contingencies
AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Information Management Quality Level 3 •
Information Management Strategy approved o IT/IS structure and plan o LCI (Life Cycle Information) draft o DFO (Documentation for Operation) draft
Key Activity: Quality Management Quality Level 3 •
Quality Plan approved
Key Activity: Continuous Improvement Quality Level 3 •
Revised CI strategy, resources and targets
Key Activity: Change Management Quality Level 3 • •
Project Change Management approved Basis for Change Control approved
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PROJECT TENDERING – MILESTONE MTD Key Activity: Engineering Quality Level 4 •
Bid clarifications concluded and all relevant documentation updated and approved
Key Activity: Procurement Quality Level 4 •
Bid Clarification concluded and all relevant documentation updated and approved
Key Activity: Sub-Contracting Quality Level 4 •
Bid Clarifications concluded and all relevant documentation updated and approved
Key Activity: Fabrication/Construction Quality Level 4 •
Bid Clarification concluded and all relevant documentation updated and approved
Key Activity: Completion Quality Level 4 •
Bid Clarifications concluded and all relevant documentation updated and approved
Key Activity: Tender Management and Administration Quality Level 4 • • • • • •
Negotiation Team selected Bid clarifications concluded/settled Negotiations concluded Risk Classification verified Contract document complete and ready for approval, DM 5. (ref. Risk Policy Appendices 7, 9 and 10 ) Contract ready for handover to project team
Key Activity: Project Execution Strategy Quality Level 4 • •
Project Execution Strategy and Execution Plans adjusted for clarifications and negotiations Updated Project Execution Strategy approved
Key Activity: Project Team Alignment/HR Quality Level 4 •
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Key Activity: HSE Management Quality Level 4 •
HSE program updated as required based on bid clarifications and contract negotiations
Key Activity: Cost Management Quality Level 4 • •
Price and contingency updated based on clarifications and negotiations Price and contingency approved by management
Key Activity: Planning & Scheduling Quality Level 4 •
All Project Schedules affected by clarifications and negotiations updated and approved
Key Activity: Risk Management Quality Level 4 •
•
Risk documentation updated and reassessed based on deviations from submitted tender in bid clarifications and negotiations; o Risk analyses and Project Risk Profile o Risk Register o Risk Report Updates approved by management
Key Activity: Contract Management Quality Level 4 • •
Contract and Subcontract documentation updated with exceptions and clarifications Contract and Subcontract documentation approved by management
Key Activity: Quantity & Weight Management Quality Level 4 • •
Weight and weight breakdown updated as per Scope of Work update Weight and weight breakdown update approved by management
Key Activity: Information Management Quality Level 4 •
Information Management documentation updated as required and management approval obtained
Key Activity: Quality Management Quality Level 4 •
Quality Plan updated as relevant
AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Continuous Improvement Quality Level 4 • •
Revised CI strategy, resources and targets Presentations made to client (as required)
Key Activity: Change Management Quality Level 4 •
Basis for Change Control updated as relevant
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PROJECT TENDERING – MILESTONE MTE Key Activity: Engineering Quality Level 5 • • • •
Technical and administrative handover completed Scope of Work start-up plan initiated Initiate design basis review Enable design basis alignment
Key Activity: Procurement Quality Level 5 •
Commercial and administrative handover completed
Key Activity: Sub-Contracting Quality Level 5 •
Technical, commercial and administrative handover completed
Key Activity: Fabrication/Construction Quality Level 5 •
Technical and administrative handover completed
Key Activity: Completion Quality Level 5 •
Technical and administrative handover completed
Key Activity: Tender Management and Administration Quality Level 5 • • • • • •
Technical, commercial and administrative handover completed Project team mobilisation as scheduled Tender team demobilised Client kick-off meeting performed Start-up plans implemented for o Scope of Work o Administration & Management Project kick-off meetings as scheduled
Key Activity: Project Execution Strategy Quality Level 5 • • •
Project Execution Strategy and Execution Plans handover completed Draft milestone Status Checklist established Project Milestone Plan implemented in draft Project audit and verification activities
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AKER KVAERNER COMMON PEM – USER GUIDE
Key Activity: Project Team Alignment/HR Quality Level 5 • • • •
Project Management team and Project Board aligned Key consortium issues clarified Kick off meeting with customer executed Kick off meetings in project with mobilised personnel executed
Key Activity: HSE Management Quality Level 5 • •
HSE Management handover completed Project HSE Program established
Key Activity: Cost Management Quality Level 5 • • •
Draft Control Budget established and cost breakdown structure implemented Commercial handover completed Commercial awareness program initiated
Key Activity: Planning & Scheduling Quality Level 5 •
Completed handover of; o Key Activity Schedule o Procurement Schedule and Long Lead Items o Contract Milestone Schedule o Mobilisation Schedule o Deliverables o Manhour loading
Key Activity: Risk Management Quality Level 5 •
Project Risk Model, Risk Register and Risk Report handover completed
Key Activity: Contract Management Quality Level 5 •
Contract and Subcontract handover completed
Key Activity: Quantity & Weight Management Quality Level 5 •
Weight and Quantity Management and Weight Report handover completed
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Key Activity: Information Management Quality Level 5 • •
Information management handover completed IT/IS available in project
Key Activity: Quality Management Quality Level 5 • •
Quality Management handover completed Project Quality Plan established
Key Activity: Continuous Improvement Quality Level 5 •
CI strategy, resources and targets communicated to client, project, Business Unit and Business Area
Key Activity: Change Management Quality Level 5 • •
Change Management handover completed Project Change Control Procedure established
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APPENDIX B CONTROL LEVEL MILESTONE REQUIREMENTS PROJECT EXECUTION
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PROJECT EXECUTION Control Level Milestone Requirements / Quality Levels
AKER KVAERNER COMMON PEM – USER GUIDE
PROJECT EXECUTION – MILESTONE 1A Key Activity : Concept Execution Activity : Concept Execution Quality Level 1 • HSE Requirements established. • Identify product and market. • Establish possible process solutions infrastructure identified. • Establish environmental requirements. • Key process and product interfaces defined.
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PROJECT EXECUTION – MILESTONE 1B Key Activity : Concept Execution Activity : Concept Execution Quality Level 2 • HSE goals established. • Block model/unit arrangement done. • Preliminary simulation and flow diagrams performed. • Construction and completion aspects affecting the concept selection identified.
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PROJECT EXECUTION – MILESTONE 1C Key Activity : Concept Execution Activity : Concept Execution Quality Level 3 • HSE studies performed to verify concepts and initial environmental impact assessment. • Design basis issued. • Overall equipment list established. • System simulation and flow diagrams performed. • Preliminary construction methods identified. • Completion methods to enable early testing defined. • Layout w/safety assessment established.
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PROJECT EXECUTION – MILESTONE 1D Key Activity : Concept Execution Activity : Concept Execution Quality Level 4 • HSE studies and analyses performed and environmental impact report issued. • Risk assessment updated. • Functional requirements frozen. • Layout and unit arrangement finalised. • Agreed design documentation such as single line, layouts, equipment list.. • Preliminary construction method updated. • Site preparation design completed. • Finalised completion execution strategy.
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PROJECT EXECUTION – MILESTONE 2A Key Activity : HSE in Design Activity : HSE in Design Quality Level 1 • Identification of hazard and accidents, preliminary: • Failure frequency data. • Frequencies of initial events. • Main assumptions. • Environmental risk study and analyses, preliminary: • External environment. • Working environment. • Escape and evacuation study. • Ventilation study. • Accidental risk studies and analyses, preliminary: • Fire and explosion calculations. • Collision, dropped objects, etc study. • Fatal accident rate study. • Financial loss study. Key Activity : System Engineering Activity: Global Eng, P&IDs (inc Line List) & Equipment List Quality Level 1 •
•
Piping & Instrument Diagram: o Material selection reflected o Pipe spec & spec breaks shown o Valves shown o Lines shown with estimated sizes o Design Basis issued o 'First Supplier Information' included for 1st Priority equipment Master Equipment List: o Draft equipment list completed (Initial Info) o 'First Supplier Information' included for 1st Priority equipment
Activity : E & I Databases and Registers Quality Level 1 • Information implemented based on ‘First Supplier Information’ for 1st Priority PO’s.
Key Activity : Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 1 •
'First Suppliers Information': o Footprint location (+/- 50 mm) o Dimensions of major equipment/skids o Weight & COG o Main nozzles (+/1 200 mm) o Utility consumption
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Activity: Bulk Material Quality Level 1 • •
Bulk's ID’s and initial specification done Site material management plan established
Key Activity : Layout and 3D Model Activity : Electrical/Instrument Quality Level 1 • Main cable ladders located. • Draft equipment room layouts. Activity : General •
1st Priority equipment modelled based on ‘First Supplier Information’.
Activity : Piping/Layout • • • • •
Piping studies for critical systems. Major equipment located. Main HVAC ducts preliminary Main access ways and handling routes preliminary. Pipe racks located and sized. Fabrication/construction methods incorporated.
Activity : Structural • • • •
Main structure, truss, deck and wall framing members inter-discipline checked. Main structure nodes and connections preliminary. Secondary structure, deck, wall plates and stiffeners preliminary. Major outfitting structure preliminary.
Key Activity : Sub-Contracting Activity : Quality Level 1 • Sub-Contracting General. • Finalise sub-contracting strategy including: • Number of sub-contracts. • Scope of work. • Timing of tenders/awards. • Approved bidders list. • Allocation of responsibilities. • Vendor Representative/Supervision sub-contracts: • Identify Requirements. • Prepare standard terms and conditions. • Establish general terms for sub-contracts (including main contract ‘flow downs’), commercials and special conditions.
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Key Activity : Fabrication and Construction Activity : Office-Based Activities Quality Level 1 • Construction Manager mobilised in Project Team. • Fabrication/construction methods established. • Responsibility matrix Aker Kvaerner/Sub-Contractors/Client established. • Construction areas defined. • Input to System definitions. • Input to Sub-Contracting strategy. • Methods for temporary operations (transportation, installation, etc) defined. • Site management and supervision plan established. • Site mobilisation and temporary facilities plan established. • Site requirements and standard specifications developed. • Initial construction sequence, schedule and progress measurement developed. • Site Environmental, Health & Safety plan established. Activity : Site/Assembly Yard Activities •
Site Inspections and Surveys.
Key Activity: Completion Quality Level 1
Activity: Office-based activities • • • • •
Completion Manager mobilised Detailed completion strategy for PCS system established MC in 1st priority POs defined Draft system boundary limits defined Completion requirements in design identified
AKER KVAERNER COMMON PEM – USER GUIDE
PROJECT EXECUTION – MILESTONE 2B Key Activity: HSE in Design Activity: HSE in Design Quality Level 2 •
•
•
Identification of hazard and accidents interdiscipline checked o Failure frequency data o Frequencies of initial events o Main assumptions Environmental risk study & analyses interdiscipline checked: o External environment o Working environment o Escape & evacuation study o Ventilation study Accidental risk studies and analyses interdiscipline checked: o Fire and explosion calculations o Collision, dropped objects etc. study o Fatal accident rate study o Financial loss study
Key Activity: System Engineering Activity: Global Eng, P&IDs (inc Line List) & Equipment List Quality Level 2 •
•
Piping & Instrument Diagram: o Critical lines sized o HAZOP performed o PCV/PSV and inline instruments sized o 'First Supplier Information' included for 2nd Priority equipment Master Equipment List: o All Tagged items listed o 'First Supplier Information' included for 2nd Priority equipment
Activity: E&I Databases and Registers Quality Level 2 • •
Information implemented based on; 'First Supplier Information' for 2nd Priority PO’s
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 1 •
'First Supplier Information': o Footprint location (+/- 50 mm) o Dimensions of major equipment/skids o Weight & COG o Main nozzles (+/1 200 mm) o Utility consumption
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Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 1 •
'First Suppliers Information': o Footprint location (+/- 50 mm) o Dimensions of major equipment/skids o Weight & COG o Main nozzles (+/1 200 mm) o Utility consumption
Activity: Bulk Material Quality Level 2 • • • •
Bulks specified First full take off done Allowances >20% Initial PO’s placed
Key Activity: Layout & 3D Model Quality Level 2
Activity: Electrical/Instrument • • •
Main & high voltage cable ladder preliminary Equipment room layouts interdiscipline checked Penetrations through structural main structure agreed
Activity: General •
2nd priority equipment modelled based on 'First Supplier Information'
Activity: Piping/Layout • • • • • • • •
Critical Lines sized, numbered & specified in model Interface & breakpoints for modelled lines Special items indicated Insulation & heat tracing for modelled lines Main accessways and handling routes interdiscipline checked Pipe support & shoes for critical lines preliminary Main HVAC ducting interdiscipline checked Penetrations through structural main structure agreed
Activity: Structural • • • • •
Main structure, truss, deck and wall framing members frozen Main structure nodes & connections interdiscipline checked Secondary structure, deck, wall plates and stiffeners interdiscipline checked Major outfitting structure interdiscipline checked Minor outfitting structure preliminary
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Key Activity: Sub-Contracting Activity: Sub-Contracting Quality Level 2 • •
Sub-Contracts General: o Sub-contract administration plan agreed 1st Priority Sub-Contracts: o Pre-qualify bidders o Project Team “buy in” of bidders list & general scope of work for each subcontract o Establish insurance & bonding requirements per sub-contract based on level of exposure o Develop scope, technical & commercial requirements o Issue tenders
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PROJECT EXECUTION – MILESTONE 2C Key Activity: HSE in Design Activity: HSE in Design Quality Level 3 •
•
•
Identification of hazard and accidents frozen: o Failure frequency data o Frequencies of initial events o Main assumptions Environmental risk study & analyses frozen: o External environment o Working environment o Escape & evacuation study o Ventilation study Accidental risk studies and analyses frozen: o Fire and explosion calculations o Collision, dropped object etc. study o Fatal accident rate study o Financial loss study
Key Activity: System Engineering Activity: Global Eng, P&IDs (inc Line List) & Equipment List Quality Level 3 •
•
Piping & Instrument Diagram: o All lines sized o HAZOP comments incorporated o Vents & drains identified o P&ID/3-D model comparison done o 'Frozen Supplier Interface Information' included for 1st, 2nd & 3rd Priority equipment Master Equipment List: o Equipment list ready to be used as basis of design o All tagged items contain process data, load data o 'Frozen Supplier Interface Information' included for 1st, 2nd & 3rd Priority equipment
Activity: E&I Databases and Registers Quality Level 3 • •
Information implemented based on; 'Frozen Supplier Interface Information' for 1st, 2nd, 3rd Priority Packages
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 2 •
'Frozen Supplier Interface Information': o Foundation Info o Nozzle locations o Junction boxes o All external dimensions o Supplier P&ID approved drawings w/comments o Platforms & ladders
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Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 2 •
'Frozen Supplier Interface Information': o Foundation Information o Nozzle locations o Junction boxes o All external dimensions o Supplier P&ID approved drawings w/comments o Platforms & ladders
Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 2 •
'Frozen Supplier Interface Information': o Foundation information o Nozzle locations o Junction boxes o All external dimensions o Supplier P&ID approved drawings w/comments o Platforms & ladders
Activity: Bulk Material Quality Level 3 • • •
100% Bulk PO’s placed Site warehousing established Field blanket PO’s issued
Key Activity: Layout & 3D Model Quality Level 3
Activity: Electrical/Instrument • • • • •
Main and high voltage Cable ladders frozen Remaining & low voltage cable ladders interdiscipline checked All instruments tagged Equipment room layouts frozen All penetrations through secondary structure agreed
Activity: General •
1st, 2nd & 3rd priority equipment finally located and modelled based on 'Frozen Supplier Interface Information'
Activity: Piping/Layout • • • • • • •
All lines sized, numbered & specified in model Breakpoint & interface points noted All piping material specified All accessways and handling routes frozen Main HVAC ducting frozen Pipe support & shoes for critical lines frozen All penetrations through secondary structure agreed
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Activity: Structural • • • • •
Main structure, truss, deck and wall framing members completed Main structure nodes & connections frozen Secondary structure, deck, wall plates and stiffeners frozen Major outfitting structure frozen Minor outfitting structure interdiscipline checked
Key Activity: Sub-Contracting Quality Level 3 Activity: Sub-Contracting •
• •
Sub-Contract General: o Sub-contract administration organisation in place o Vendor Rep / Supervision sub-contracts: Perform technical & commercial analysis and agree rates 1st Priority Sub-Contracts: o Perform technical & commercial analysis of subcontractor tenders. o Award sub-contracts 2nd Priority Sub-Contracts: o Pre-qualify bidders o Project Team “buy in” of bidders list & general scope of work for each subcontract o Establish insurance & bonding requirements per subcontract based on level of exposure o Develop scope, technical & commercial requirements Issue tenders
Key Activity: Fabrication/Construction Quality Level 2
• Key Activity: Completion Quality Level 2
Activity: Office-based activities • • • • • • •
Completion team mobilised Standard manuals and procedures issued MC in all POs defined Systems and system boundary limits defined Data transfer to PCS substantially complete Draft commissioning network plan Commissioning procedures issued
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PROJECT EXECUTION – MILESTONE 3A Key Activity: HSE in Design Activity: HSE in Design Quality Level 4 •
•
•
Identification of hazard and accidents complete: o Failure frequency data o Frequencies of initial events o Main assumptions Environmental risk study & analyses complete: o External environment o Working environment o Escape & evacuation study o Ventilation study Accidental risk studies and analyses complete: o Fire and explosion calculations o Collision, dropped object etc. study o Fatal accident rate study o Financial loss study
Key Activity: System Engineering Activity: Global Eng, P&IDs (inc Line List) & Equipment List Quality Level 4 •
•
Piping & Instrument Diagram: o All instrument logic reflected o Control & alarm settings included o Certified/final approved vendor info implemented Master Equipment List: o Equipment List is issued as a construction/field support document o Information updated based on 'Final Approved Supplier Information' for all equipment
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 3 •
'Fabrication & Commissioning Supplier Information': o Design documents including comments o Approved installation & commissioning o Spares recommendation o Shipping info
Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 3 •
'Fabrication & Commissioning Supplier Information': o Design documents including comments o Approved installation & commissioning o Spares recommendation o Shipping info
AKER KVAERNER COMMON PEM – USER GUIDE
Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 3 •
'Fabrication & Commissioning Supplier Information': o Design documents including comments o Approved installation & commissioning o Spares recommendation o Shipping info
Activity: Bulk Material Quality Level 4 •
Top off orders placed
Key Activity: Layout & 3D Model Quality Level 4 Activity: Electrical/Instrument • •
All cable ladders frozen Vendor info for inline instruments validated All penetrations agreed
Activity: Piping/Layout • • •
All appropriate lines stress checked All supports & shoes in model All penetrations agreed
Activity: Structural • • •
Main structure, nodes & connections completed Secondary structure, deck, wall plates and stiffeners completed All outfitting structure completed
Key Activity: Sub-Contracting Quality Level 4 Activity: Sub-Contracting •
2nd Priority Sub-Contracts: o Perform technical & commercial analysis of subcontractor tenders. o Start awarding of 2nd Priority Sub-contracts
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Key Activity: Fabrication/Construction Quality Level 3 Activity: Office-based Activities • • • • • •
Fabrication / construction methods finalised Methods for temporary operations (transportation, installation etc.)finalised Civil requirements for major lifts finalised System definitions complete Site prep and civil Sub-contracts in-place Construction sequence, schedule & progress measurement finalised
Activity: Site/Assembly Yard Activities • • • • • •
Construction Manager mobilised to site Construction area definition Temporary facilities established Progress measurement implemented Reporting procedures in place EH&S management in place
Key Activity: Completion Quality Level 3 Activity: Off-site/Fabrication yard activities •
All temporary facilities in place
Activity: Office-based activities • • • • • • •
Completion strategy final Completion boundary limits final Commissioning network plan final Commissioning procedures final Start up procedures inter-discipline checked Supplier documents for completion received final Commissioning spares, consumables and first fill ordered
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PROJECT EXECUTION – MILESTONE 3B Key Activity: System Engineering Activity: E&I Databases and Registers Quality Level 4 • • •
All information required for EIT installation implemented. Information implemented based on; 'Fabrication & Commissioning Supplier Information' for all packages
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 4 •
'Goods Handling Supplier Information': o OEM’s (Operation, Engineering & Maintenance Manuals) o Parts lists o Documentation & certification for shipping/lifting
Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 4 •
'Goods Handling Supplier Information': o OEM’s (Operation, Engineering & Maintenance Manuals) o Parts lists o Documentation & certification for shipping/lifting
Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 4 •
'Goods Handling Supplier Information': o OEM’s (Operation, Engineering & Maintenance Manuals) o Parts lists o Documentation & certification for shipping/lifting
Activity: Bulk Material Quality Level 5 •
All bulks on site
Key Activity: Layout and 3D Model Quality Level 5 •
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Key Activity: Subcontracting Quality Level 5 •
Key Activity: Fabrication & Construction Quality Level 4
Activity: Off-Site/Fabrication Yard Activities • • •
Shop / works fabrication of pipework started Shop / works module fabrication started Structural steel fabrication started
Activity: Office-based Activities • • • •
Fabrication/construction sequences detailed Methods for construction indirects, temporary facilities & operations finalised Rigging studies and major method statements in-place Bulks installation Sub-contracts in-place
Activity: Site/Assembly Yard Activities • •
• •
Fabrication/construction sequences detailed All AK field construction procedures in place, including: o Welding, QA/QC o Safety o Material Control o Accounting, etc. Site improvements or preparation complete Civil Subcontractor mobilised
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PROJECT EXECUTION – MILESTONE 3C Key Activity: HSE in Design Activity: HSE in Design Quality Level 5 •
As built information incorporated
Key Activity: System Engineering Activity: Global Eng, P&IDs (inc Line List) & Equipment List Quality Level 5 • •
Piping & Instrument Diagram: o As built information incorporated Master Equipment List: o As built information incorporated
Activity: E&I Databases and Registers Quality Level 5 • •
Information updated based on; 'Final Approved Supplier Information' for all packages
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Key Activity: Layout & 3D Model Quality Level 6
Activity: Electrical/Instrument •
Fabrication and Completion information added
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Activity: Piping/Layout •
Fabrication and Completion information added
Activity: Structural •
Fabrication and Completion information added
Key Activity: Sub-Contracting Quality Level 6 •
2nd Priority Sub-Contracts: o Perform technical & commercial analysis of subcontractor tenders. o Complete awarding of 2nd Priority Sub-contracts
Key Activity: Fabrication & Construction Quality Level 5
Activity: Off-Site/Fabrication Yard Activities • • • • •
Shop / works fabrication of pipework complete Shop / works module fabrication complete Structural steel fabrication complete Documented completion by systems and turnover for commissioning of pre-fabricated modules Preventative maintenance / preservation plan implemented
Activity: Office-based Activities • •
Remaining installation sub-contracts in place Final isometrics issued
Activity: Site/Assembly Yard Activities • • •
Major concrete works complete Underground works complete Preventative maintenance / preservation plan implemented
Key Activity: Completion Quality Level 4
Activity: Off-site/Fabrication yard activities • • • • • •
Client team mobilised to commissioning MC activities commenced by system Commissioning commenced on selected systems Preservation activities commenced PO packages FAT testing completed PO package follow up complete and punch lists final
Activity: Office-based activities • •
Client team mobilised to commissioning Commissioning plan integrated with construction
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PROJECT EXECUTION – MILESTONE 4A Key Activity : Sub-Contracting Quality Level 7 • Sub-Contractor performance evaluation and feedback to sub-contractor database for Sub-Contracts. .
AKER KVAERNER COMMON PEM – USER GUIDE
PROJECT EXECUTION – MILESTONE 4B Key Activity: Fabrication & Construction Activity: Site/Assembly Yard Activities Quality Level 6 • • • • • • • • • • • • •
All major equipment set Major on site fabrications complete All materials and fabricated items received QA/QC 3rd party audits Steel erection complete Buildings complete Bulk piping installation in progress Bulk cabling and termination in progress Documented completion by systems and handover for commissioning started All handover documents / quality dossiers prepared & ready to populate QA/QC 3rd party audits Pressure testing complete First fill lubricates and initial charge of chemicals on site
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PROJECT EXECUTION – MILESTONE 4C Key Activity: HSE in Design Activity: HSE in Design Quality Level 5 •
As built information incorporated
Key Activity: System Engineering Activity: Global Eng, P&IDs (inc. Line List) & Equipment List Quality Level 5 • •
Piping & Instrument Diagram: o As built information incorporated Master Equipment List: o As built information incorporated
Activity: E&I Databases and Registers Quality Level 5 •
As built information incorporated
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Key Activity: Layout & 3D Model Quality Level 6 Activity: Electrical/Instrument •
As built information added
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Activity: Piping/Layout •
As built information added
Activity: Structural •
As built information added
Key Activity: Sub-Contracting Quality Level 6 •
Close out & final account for Sub-contracts
Key Activity: Completion Quality Level 5 Activity: Office-based activities • • •
Start up procedures agreed with client MC activities Commissioning activities on all systems in accordance with plan
Activity: Site/Assembly Yard Activities • • • •
Client team mobilised to commissioning Start up procedures agreed with client MC activities Commissioning activities on all systems in accordance with plan
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PROJECT EXECUTION – MILESTONE 5A Key Activity: Sub-Contracting Quality Level 7 •
Sub-contractor performance evaluation and feedback to subcontractor database for Subcontracts
Key Activity: Completion Quality Level 6
Activity: Office-based activities • • • •
Completion documentation updated to reflect as built Start up procedures final and start up activities completed Completion documentation updated Punch list final
Activity: Site/Assembly Yard Activities • • •
Completion documentation updated to reflect as built Start up procedures final and start up activities completed Punch list final
AKER KVAERNER COMMON PEM – USER GUIDE
PROJECT EXECUTION – MILESTONE 5B Key Activity : Fabrication and Construction Activity : Site/Assembly Yard Activities Quality Level 7 • Handover documents/quality dossiers complete. • Mechanical Completion certificates issued. • Categorised punch lists in place, only minor items outstanding. • Insulation, labelling and identification complete. • As built information added.
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PROJECT EXECUTION – MILESTONE 5C Key Activity : Sub-Contracting Quality Level 6 • Close out and final account for Sub-Contracts.
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PROJECT EXECUTION – MILESTONE 5D Key Activity: HSE in Design Activity: HSE in Design Quality Level 5 •
As built information incorporated
Key Activity: System Engineering Activity: Global Eng, P&IDs (inc Line List) & Equipment List Quality Level 5 • •
Piping & Instrument Diagram: o As built information incorporated Master Equipment List: o As built information incorporated
Activity: E&I Databases and Registers Quality Level 5 •
As built information incorporated
Key Activity: Procurement Activity: Supplier Doc's and Drg's - Priority 1 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Activity: Supplier Doc's and Drg's - Priority 2 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Activity: Supplier Doc's and Drg's - Priority 3 Equipment Quality Level 5 •
'Final Approved Supplier Information'
Key Activity: Layout & 3D Model Quality Level 6
Activity: Electrical/Instrument •
As built information added
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Activity: Piping/Layout •
As built information added
Activity: Structural •
As built information added
Key Activity: Sub-Contracting Quality Level 7 •
Sub-contractor performance evaluation and feedback to subcontractor database for Subcontracts
Key Activity: Completion Quality Level 7 Activity: Office-based activities • •
Punch list cleared Final hand over to client
Activity: Site/Assembly Yard Activities • • • •
All temporary systems removed Plant performance testing Punch list cleared Final hand over to client
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APPENDIX C CONTROL LEVEL MILESTONE REQUIREMENTS PROJECT MANAGEMENT
AKER KVAERNER COMMON PEM – USER GUIDE
Project Management - Key Activities (Champagne diagram)
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PROJECT MANAGEMENT – MILESTONE 1A Key Activity : Concept Management Quality Level 1 • Class A Cost Estimate ± 50%. • Overall Field Development plan established.
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PROJECT MANAGEMENT – MILESTONE 1B Key Activity : Concept Management Quality Level 2 • Class B Cost Estimate ± 40%. • Study Schedule for the alternatives established. • Weight estimates as input for +/-40% cost estimate performed. • Master Equipment List (MEL) for main equipment, estimated pr system. • Initial strategy developed. • Preliminary Risk assessment. • Project objectives. • General execution philosophy. • Right to use technology. • Proprietary rights (between Client – Contractor).
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PROJECT MANAGEMENT – MILESTONE 1C Key Activity : Concept Management Quality Level 3 • Class C Cost Estimate ± 30%. • Study Schedule established for the whole project. • Weight estimates for +/-30% cost estimate performed. • Overall MEL with all equipment, estimated for utility systems. • HSE program activities for feasibility and concept selection implemented. • General project execution strategy based on generic PEM model issued: • Overall schedule requirements. • Preliminary Risk assessment. • HSE strategy. • Construction and Completion strategy. • Contracting Strategy. • Right to use technology and proprietary rights (between Client – Contractor – Partners).
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PROJECT MANAGEMENT – MILESTONE 1D Key Activity : Concept Management Quality Level 3 • Class D Cost Estimate ± 20%. • Key Activity Schedule, overall plan w/critical path. • Weight estimates for +/-20%. • Cost estimates performed. • Overall MEL with all equipment, estimated for utility systems. • Project Execution strategy based on generic PEM issued: • Overall schedule. • Risk assessment. • HSE strategy. • Interface matrix and interface schedule established. • Reference to lessons learned and benchmarks from previous projects. • Construction, sub-contracting and completion strategy. • Project contracting strategies, risk policy, price formats and contract sub-division. • Execution of pre-bid agreements. • Establish agreements for Strategic Building Blocks (SBB between Client, Contractor and Partners). • Pre-qualification of major sub-contractors. • Proprietary rights (between Contractors and Sub-Contractors, Suppliers).
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PROJECT MANAGEMENT – MILESTONE 2A Key Activity : Project Execution Strategy Quality Level 1 • The Project’s PEM (Project Execution Model) implementation responsible person appointed. • PEM is reflected in all schedules, plans and contracting documents. • PEM implemented in project audit and verification plans and activities. • Stage Review executed and punch list established. • PEM Information Plan established including: • Intranet publishing. • Information meetings. • Teambuilding’s. • Contract/risk/plan/budget awareness. • PEM Training Program established: • For project key personnel. • For project participants.
Key Activity: Project Team Alignment/HR Quality Level 1 • • • • •
Project stakeholders fully aligned (Board, PMT and Customer) Alignment document distributed and implemented All project personnel aligned around key issues of contract, organisation, values and work processes Team development plan defined and under implementation Personal business commitments (PBC) under development
Key Activity : HSE Management Quality Level 1 • HSE program activities for System Definition Phase established and started. • Overall HSE program approved by Company. • Focus on sick leave prevention actions.
Key Activity: Cost Management Quality Level 1 • • • •
Current Control Estimates (CCE), and Cost Plan established reflecting the Contract Master Schedule Critical PO budgets established Cost Code Procedures and Work Breakdown Structure in-place Cash Flow reporting established
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Key Activity : Planning and Scheduling Quality Level 1 • The Project schedule is aligned with the PEM and implemented in the planning documents. • Contract Master Schedule verified, detailed activity planning network for the next stage prepared. • Main overall project priorities included. • Work Breakdown Structure in place and implemented. • Manpower Projection Plan (MPP) established for the mobilisation of the project and for the execution. Key Activity : Risk Management Quality Level 1 • Regular risk management work. • Cost and schedule risk analysis with priority on punch list and project work on System Design and Layout Development stage and Global Design stage. Key Activity : Quantity and Weight Management Quality Level 1 • Weight estimate verified. • Established Weight Policy. • Established Weight Control System and Procedures. • Measurement principles and procedures completed. • Quantity forecast requirements completed. • Weight Control activities in place. • Measurement principles per discipline completed. Key Activity : Information Management Quality Level 1 • Establish project specific procedures including: • Engineering numbering. • DFO (Document for Operation) plan. • Data Quality plan. • Establish ‘Vital Interface’ information list. • Establish document and drawing register. • DFO requirements established for 1st priority PO’s. Key Activity : Quality Management Quality Level 1 • Establish and implement Quality Plan including list of applicable governing documents covering System Definition phase. • Implement system for non-conformity handling. • Establish audit and verification plan and follow-up tool. • Sub-Contractor/Supplier evaluation system established. • PEM phase reviews planned with respect to content, timing and review responsible. Key Activity : Contract Management Quality Level 1 • Contract administration established. • Contract between Client and contractor: • Contract and design basis review completed.
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All disciplines, inconsistencies and defects documented and concluded with Client. • Design development effects on weight, price and schedule identified. Contract between contractor and partners: • Variations, working capital/financial arrangements of production cost, cost deviations, changes in contract and price formats. • Concluded Joint Venture agreements, internal invoicing, reporting and meetings. Contracts with sub-contactors, suppliers: • Establish sub-contracts. • Schedule/liquidated damages, variations, claims, insurance.
•
•
Key Activity : Change Management Quality Level 1 • Project Change Strategy in place. • Change Control System implemented. • Project Change Control Active.
Key Activity: Reporting Quality Level 1 •
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PROJECT MANAGEMENT – MILESTONE 2B Key Activity : Project Execution Strategy Quality Level 2 • Stage Review is performed to verify the pre-defined milestone requirements. • The Stage Review is reported and required project actions are approved by project management. • Experience transfer to generic PEM model done.
Key Activity: Project Team Alignment/HR Quality Level 2 • • •
New personnel and stakeholders (critical subcontractors, detail engineering contractors etc) aligned New stakeholders included in team development and training plan Personal business commitments (PBC) agreed and finalised (including variable pay scheme where applicable)
Key Activity: Cost Management Quality Level 2 •
CCE update reflecting more PO information and the frozen prefabrication program
Key Activity : Planning and Scheduling Quality Level 2 • Detailed activity planning network verified for the next stage. • Main overall priorities included. • Detailed deliverable schedule prepared. Key Activity : Risk Management Quality Level 2 • Regular risk management work. • Cost and schedule risk analysis with priority on punch list and project work in Detail Design and Sub-Contracting stage. Key Activity : Quantity & Weight Management Quality Level 2 • Established discipline quantity budgets (if applicable). • Translation matrixes completed. Key Activity : Information Management Quality Level 2 • Implement Information Management requirements within the project. • Update document and drawing register. • Efficient communication between office and available site/sub-contractors established. • DFO requirements established for 2nd priority PO’s.
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Key Activity : Contract Management Quality Level 2 • Client-Contractor contract. • Design development effects on weight, price and schedule. • Schedule/liquidated damages/indemnities, variations/dispute administration/ insurance. Key Activity : Change Management Quality Level 2 • Project Change procedures for available Sub-Contracts in place.
Key Activity: Reporting Quality Level 2 •
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PROJECT MANAGEMENT – MILESTONE 2C Key Activity : Project Execution Strategy Quality Level 3 • Technical and commercial Phase review performed to verify the pre-defined milestone requirements. • The Phase Review is reported and required project actions are approved by Business Area project responsible. • Experience transfer to generic PEM model done.
Key Activity: Project Team Alignment/HR Quality Level 3 • • • • • • • •
Realignment needs for detailing & fabrication phase assessed (new phase, new challenges, new personnel) Refocused alignment plan Realignment activities/workshop(s) executed All planned team development activities for previous phase executed Team development plan for upcoming phase evaluated and refocused All training activities for the previous phase executed Training plan for upcoming phase evalutated and refocused Key organisational learning's and feedback documented for previous phase (enhance quality and speed of organisational close out report/presentation)
Key Activity : HSE Management Quality Level 2 • HSE program activities for System Definition Phase completed. • HSE program for construction and completion at site, including detailed HSE program for Detailing and Fabrication phase, issued. • Focus on sick leave prevention actions. Key Activity : Cost Management Quality Level 3 • CCE update addressing frozen construction schedule. • Sub-Contract and Fabrication Bid Check Estimates established (onshore). Key Activity : Planning and Scheduling Quality Level 3 • Detailed activity planning network verified for the next phase (fabrication may start in parallel with drawing production). • Detailed construction schedule verified with available contractors schedules. • MPP established for the next phase. Key Activity : Risk Management Quality Level 3 • Regular risk management work. • Cost and schedule risk analysis with priority on punch list and project work in PreFabrication and Manufacturing stage.
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Key Activity : Quantity & Weight Management Quality Level 3 • Weight and Centre of Gravity report to be used as basis for the Cost Control Estimate (CCE) updates and relevant schedule revisions. • Weights are based on Quality Level 3 (QL 3) information from system engineering and Layout 3D model activities, etc. Key Activity : Information Management Quality Level 3 • Updated document register including: • Document for Operation plan. • Data quality activities. • Efficient communication between office established. • DFO requirements established for all PO’s.
and
available
site-sub-contractors
Key Activity : Quality Management Quality Level 2 • Quality Plan including list of applicable governing documents updated to cover the Detailing and fabrication phase. • Audit and verification plan updated for the Detailing and Fabrication phase. • Audits executed according to plan. • Sub-Contractor/Supplier QA evaluation according to plan.
Key Activity: Continuous Improvement Quality Level 2 • • • • •
Team members selected Training needs identified Training completed CI projects started Reporting schedule created
Key Activity : Contract Management Quality Level 3 • Client-Contractor Contract: • Design development and design basis variations evaluated. • Effect on project cost and schedule identified and reported. • Contractor-Partners contract: • Any cost and schedule deviation identified. • Effect on project cost and schedule evaluated and reported. • Contractor- Sub-Contactors, supplier contract: • Schedule/liquidated damages, variations, claims, insurance evaluated. • Effect on project cost and schedule identified and reported. Key Activity : Change Management Quality Level 3 • Project Change procedures for available Sub-Contracts and Fabrication/Construction in place.
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Key Activity: Reporting Quality Level 2 •
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PROJECT MANAGEMENT – MILESTONE 3A Key Activity : Project Execution Strategy Quality Level 4 • Stage Review is performed to verify the pre-defined milestone requirements. • The Stage Review is reported and required project actions are approved by project management. • Experience transfer to generic PEM model done. Key Activity : Cost Management Quality Level 4 • Sub-Contract and Fabrication Bid Check Estimates established (offshore). Key Activity : Planning and Scheduling Quality Level 4 • Detailed activity planning network verified for the remaining stages in the Detailing and Fabrication phase. • Detailed construction schedule verified with available contractors schedules. • Commissioning detail network plan established. Key Activity : Risk Management Quality Level 4 • Regular risk management work. • Cost and schedule risk analysis with priority on punch list and project work in Fabrication stage. Key Activity : Information Management Quality Level 4 • Supervise and monitor documents: • Document for Operation (DFO). • Data quality production and quality. • Efficient communication between office established.
and
available
site/sub-contractors
Key Activity : Contract Management Quality Level 4 • Client-Contractor Contract: • Detail design development and variations evaluated. • Effect on project cost and schedule identified and reported. • Contractor-Partners contract: • Cost and schedule deviation identified. • Effect on project cost and schedule evaluated and reported. • Contractor-Sub-Contactors, supplier contract: • Schedule/liquidated damages, variations, claims, insurance evaluated. • Effect on project cost and schedule identified and reported. Key Activity : Change Management Quality Level 4 • Project Change procedures for all Sub-Contracts in place.
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PROJECT MANAGEMENT – MILESTONE 3C Key Activity : Project Execution Strategy Quality Level 4 • Technical and commercial Phase review performed to verify the pre-defined milestone requirements. • The Phase Review is reported and required project actions are approved by Business Area project responsible. • Experience transfer to generic PEM model done.
Key Activity: Project Team Alignment/HR Quality Level 4 • • • • • • • •
Realignment needs for assembly/erection phase assessed (new phase, new challenges, new personnel) Refocused alignment plan Realignment activities/workshop(s) executed All planned team development activities for previous phase executed Team development plan for upcoming phase evaluated and refocused All training activities for the previous phase executed Training plan for upcoming phase evalutated and refocused Key organisational learning's and feedback documented for previous phase (enhance quality and speed of organisational close out report/presentation)
Key Activity : HSE Management Quality Level 3 • HSE program activities for Detailing and Fabrication completed. • HSE program for construction and completion updated to include Assembly/Erection phase. • Focus on sick leave prevention actions. Key Activity : Cost Management Quality Level 5 • CCE update based on frozen test program and assembly schedule. Key Activity : Planning and Scheduling Quality Level 5 • Detailed activity planning network verified for the next phase . • Detailed assembly/erection schedule verified. • Completion planning requirements for assembly defined. • MPP established for the next phase. Key Activity : Risk Management Quality Level 5 • Regular risk management work. • Cost and schedule risk analysis with priority on punch list and project work in the Erection/Assembly phase.
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Key Activity : Quantity & Weight Management Quality Level 4 • Weight and Centre of Gravity report to be used as basis for CCE update and relevant planning schedules • Weights and C of G are based on Quality Level 5 (QL 5) information from system engineering and Layout 3D model, etc. Key Activity : Information Management Quality Level 4 • •
Supervise and monitor documents; o Document for Operation (DFO) o Data Quality production and quality Efficient communication between office and site/sub-contractors established
Key Activity : Quality Management Quality Level 3 • Quality Plan including list of applicable governing documents updated to cover the Assembly/Erection phase. • Audit and verification plan updated to cover the Assembly/Erection phase. • Audits executed according to plan. • Sub-Contractor/Supplier QA evaluation according to plan. Key Activity: Continuous Improvement Quality Level 3 • • • •
CI projects executed with progress monitored using tollgates specific to improvement methodology Improvements implemented Improvement project(s) closed, results documented, benefits quantified Results published on intranet, communicated with client, project, BU and BA. Operating System updated.
Key Activity : Contract Management Quality Level 5 • Client-Contractor Contract: • Design development and design basis variations evaluated. • Effect on project cost and schedule identified and reported. • Contractor-Partners contract: • Any cost and schedule deviation identified. • Effect on project cost and schedule evaluated and reported. • Contractor- Sub-Contactors, supplier contract: • Schedule/liquidated damages, variations, claims, insurance evaluated. • Effect on project cost and schedule identified and reported. Key Activity : Change Management Quality Level 5 • Project Change procedures for available Sub-Contracts and Erection/Assembly in place.
AKER KVAERNER COMMON PEM – USER GUIDE Key Activity: Reporting Quality Level 2 •
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PROJECT MANAGEMENT – MILESTONE 4C Key Activity : Project Execution Strategy Quality Level 4 • Technical and commercial Phase review performed to verify the pre-defined milestone requirements. • The Phase Review is reported and required project actions are approved by Business Area project responsible. • Experience transfer to generic PEM model done. Key Activity: Project Team Alignment/HR Quality Level 5 • • • • • • • •
Realignment needs for system completion phase assessed (new phase, new challenges, new personnel) Refocused alignment plan Realignment activities/workshop(s) executed All planned team development activities for previous phase executed Team development plan for upcoming phase evaluated and refocused All training activities for the previous phase executed Training plan for upcoming phase evalutated and refocused Key organisational learning's and feedback documented for previous phase (enhance quality and speed of organisational close out report/presentation)
Key Activity : HSE Management Quality Level 4 • HSE program activities for Assembly/Erection completed. • HSE program for construction and completion updated to include System Completion phase. • Focus on sick leave prevention actions. Key Activity : Cost Management Quality Level 6 • CCE update. • All schedules frozen and all construction work completed. Key Activity : Planning and Scheduling Quality Level 5 • Detailed activity planning network verified for the next phase . • Detailed system handover schedule prepared/agreed with contractors and client. • Completion planning requirements for assembly defined • MPP established for next phase. Key Activity : Risk Management Quality Level 6 • Regular risk management work. • Cost and schedule risk analysis with priority on project work in the System Completion phase.
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Key Activity : Quantity & Weight Management Quality Level 5 • All weighing complete. • Weight and Centre of Gravity report as basis for CCE update and relevant planning schedules. Weights are based on information from engineering, and Fabrication/Construction Quality Level 7 (QL 7) leading to milestone M4C. Key Activity : Information Management Quality Level 5 • Prepare as-built documentation/information. • Update of mark-ups completed. • Update of registers completed. Key Activity : Quality Management Quality Level 4 • Quality Plan including list of applicable governing documents updated to cover the System Completion phase. • Audit and verification plan updated to cover the System Completion phase. • Audits executed according to plan. Key Activity: Continuous Improvement Quality Level 4 • CI projects executed with progress monitored using tollgates specific to improvement methodology • Improvements implemented • Improvement project(s) closed, results documented, benefits quantified • Results published on intranet, communicated to client, project, BU and BA. Operating System updated. • New improvement projects identified as required • Continuous Improvement key activity repeated from Quality Level 2 Key Activity : Contract Management Quality Level 6 • Client-Contractor Contract: • Design development and design basis variations evaluated. • Effect on project cost and schedule identified and reported. • Contractor-Partners contract: • Any cost and schedule deviation identified. • Effect on project cost and schedule evaluated and reported. • Contractor- Sub-Contactors, supplier contract: • Schedule/liquidated damages, variations, claims, insurance evaluated. • Effect on project cost and schedule identified and reported. Key Activity : Change Management Quality Level 6 • Project Change procedures for available Sub-Contracts and System Completion in place.
Key Activity: Reporting Quality Level 2 •
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PROJECT MANAGEMENT – MILESTONE 5D Key Activity : Project Execution Strategy Quality Level 5 • ‘As-Built’ PEM status. • Lessons learned reported and management close-out: • Key Performance Indicators (Actual). • Contractor performance. • Contractor performance. • Sub-Contractor performance. • Supplier performance. • Experience transfer to generic PEM model completed.
Key Activity – Team Alignment / HR Quality Level 6 • •
Personal business commitment final review (variable pay distributed where applicable) Organisational close out report finalised and shared
Key Activity : HSE Management Quality Level 5 • All HSE programs completed including HSE activities for System Completion phase and experience transfer. Key Activity : Cost Management Quality Level 7 • Final Cost Report ready. Key Activity : Planning and Scheduling Quality Level 7 • Project Close-Out, all activities completed.
Key Activity: Risk Management Quality Level 7 •
Project Close-out, all activities completed
Key Activity : Quantity & Weight Management Quality Level 6 • As-Built weight report. • DFO (Documents for Operation) information completed. • As-Built account for measurement completed. • As-Built measurement approved by client.
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Key Activity : Information Management Quality Level 6 • • •
Prepare and finalise handover of as-built documentation/information Update of mark-ups completed Update of registers completed
•
Projects Close-out activities completed
Key Activity: Quality Management Quality Level 5 •
Key Activity: Continuous Improvement Quality Level 5 • CI projects executed with progress monitored using tollgates specific to improvement methodology • Improvements implemented • Improvement project(s) closed, results documented, benefits quantified • Results published on intranet, communicated to client, project, BU and BA. Operating System updated. • Effectiveness of CI strategy evaluated, recommendations and lessons learnt made Key Activity : Contract Management Quality Level 7 • Delivery and Close-Out. Key Activity : Change Management Quality Level 7 • Close-Out Report.
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