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EPCM Project Implementation method4ePCMTM - Interactive Project Management

February, 20094ePCM presentation2

Project implementation method

• Selecting the right implementation method is crucial to meet cost and schedule targets of the project

• Regardless of the implementation method same work has to be done

• Selection of the implementation method determines the roles, responsibilities and liabilities of the project parties in performing, supervising and approving

• Interactive work is a necessity to reduce the investment costs

• Common language, standard scope definitions, transparency and clarity are needed


Different implementation methods

OB = Open BookESS = Extended Scope of Supply EPS = Engineering -Procurement -SupplyEPCM = Engineering -Procurement -Construction ManagementEPC = Engineering -Procurement -ConstructionBOO = Build -Own -Operate BOOT = Build -Own -Operate -TransferBOT = Build -Own -TransferDB = Design -BuildDBO = Design -Build -OperateDBFO = Design -Build -Finance -OperateFBO = Finance -Build -OperateFBOM = Finance -Build -Operate -Maintain…….


Questions to be clarified

Roles of the engineering company / client• in performing• in supervising• in approving / signing

Responsibilities• who will perform / which job

Liabilities• who bears the consequences for

– budget overrun / underrun– time schedule overrun / underrun– design workability in practice– suppliers’ and contractors’ performance / non-performance– contract terms such as payments, warranties etc– health, safety, environment– permits


Project lifecycle and EPCM

Investmentproposal

Take-overdate

Businessidea

Product andMarket analysis

Feasibilitystudy

Pre-engineering

Basicengineering

Engineering

Procurement

Construction

Preparation for production

Commissioning

Start-up

Finalgo-ahead

Development Implementation Production

Operational excellence

Back

4ePCMTM concept


4ePCMTM – in nutshellCustomer-oriented interactive project management procedure

• Pöyry has collected its cumulative project execution experience and best practices into a unique 4ePCMTM concept

• Use four-level database build around sets of

– Functions – Processes– Tasks– Deliverables

• By using 4ePCMTM Scope of Services definitions are transparent and clear and can be assigned to a specific party.

• 4ePCMTM brings – structure– clarity– efficiency– transparency

to any project and it is designed especially for the implementation of EPCM projects


Marketing Sales ImplementationNegotiationsProposal

Presentation of4ePCMTM Process

Discussion and InteractiveMeeting

Technical andCommercial

Proposal

Contract and

Appendices

Assureall targets are

achieved

Future developments• Functions • Processes

Concrete Project• Functions• Processes• Tasks• Deliverables

Proposal• Scope of Work• Scope of Services• Organization• Time Schedule• Key Tasks• Job Descriptions• key deliverables• Price • Travel Charges• Reimbursables• CV’s• References

Project basic info

Updating and Final scope definition• Functions• Processes• Tasks• Deliverables

Request for Proposal

Contractsigned

ProjectClosure

Implementation by

4ePCMTM

Process

Proposal presented

Scope further defined

Owner Interface

PÖYRY Interface

4ePCMTM The Idea – From marketing to implementation


MAIN PROJECT FUNCTIONS

PROJECT SUPERVISION

PROJECT MANAGEMENT (EPCM)

ENGINEERING MANAGEMENT

PROCUREMENT MANAGEMENT

CONSTRUCTION MANAGEMENT

COMMISSIONING MANAGEMENT

PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT

PREPARATION FOROPERATION

HEALTH, SAFETY ANDENVIRONMENT

PERMITTING ASSISTANCE

4ePCMTM– Project flow

These main Functions cover the whole sphere

of responsibilitiesrequired in any project–

irrespective of who does them.

Implementation



PROJECT SUPERVISION






PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT





PROJECT SUPERVISION






PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT




4ePCMTM– Integration of Knowledge example: Engineering Management

TASKS

FUNCTIONSPROCESSES

DELIVERABLES



PROJECT SUPERVISION






PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT





PROJECT SUPERVISION






PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT




4ePCMTM– Integration of Knowledge Example: Procurement Management

TASKS

FUNCTIONS

PROCESSES

DELIVERABLES



PROJECT SUPERVISION






PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT





PROJECT SUPERVISION






PROJECT CONTROL

QUALITY ASSURANCE

SECURITY MANAGEMENT




4ePCMTM– Integration of Knowledge Example: Construction Management

TASKS

FUNCTIONS

DELIVERABLES

PROCESSES


4ePCMTM– the Four levels of electronic database

12 Functions

60 Processes

300 Tasks

1000 Deliverables

Standard text for Scope of

Services


Services


Services


Project Owner

Mill / Plant Staff Project Staff

Project Control Engineering Management Procurement Management Construction Management Commissioning Management

Preparation forMill / Plant Operation

Pöyry Supervisor

Quality Management

Permitting andapproval Assistance

Health, Safety andEnvironment

Security Management

EPCM

Project Management

4ePCMTM– Integration of Knowledge

12 Functions 60 Processes 300 Tasks 1000 Deliverables


Why 4ePCMTM ?

• Clarity, predictability and control

• Integrated processes and methods throughout the project

• Detailed service scope definition

• Project guidelines development

• Transparent alignment of project scope and expectations between project parties

• Faster project implementation by minimising the lead times of the various project phases

• “One-stop-shopping”

• Ready-to-use templates and tools


4ePCMTM related unique productusfor critical project services


Pöyry offers effective Engineering, Procurement and ConstructionManagement service for Chemical Process Industry

using its proprietary 4ePCMTM concept

Documents

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