Eng. Mgt Training from H.G. Baron

HERVE BARON

© 2014 – Hervé Baron

Engineering Management Training

Welcome to this presentation This is a preview of my

Engineering Management training

3 public sessions will be held in 2015:

May 26-28, Paris, France

September 2-4, Paris, France

October 23-26, Lombok (Bali area), Indonesia

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To get familiar with both BASIC and DETAILED Engineering

To know the work of the various Engineering disciplines and get familiar with all common engineering deliverables

To understand the challenges faced by Engineering

To provide you with practical tips on how to control engineering execution by a sub-contractor

Training objectives & scope

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In each Engineering discipline:

Explain the design basis and criteria

Clarify the technical vocabulary

Provide basic technical knowledge

Explain the discipline activities

Show the disciplines deliverables

Explain the sequence of the work with easy to read flow diagrams

Highlight the interfaces with other disciplines

Perform hand-on exercise, in particular sizing

Confirm knowledge acquisition by a Quiz in the end

Training contents

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Textbook, 270 pages

Your training materials

Exercise book, 60 pages

CD Training slides (~1000 nos) Great for your tablets!

http://www.editionstechnip.com/en/catalogue-detail/1111/oil-gas-engineering-guide-the.html













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A word about my pedagogy…

All matters are explained by means of example. That’s the best way to learn!

I ask first before I present anything

You will be asked to find out by yourselves

The purpose is to make the brain wiring for the future

My pedagogy

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Engineering in the Project: Role, Organization, Documents, Generalities

General documents, Design basis and design criteria

The engineering disciplines • PROCESS • MECHANICAL • SAFETY & ENVIRONMENT • CIVIL • PLANT LAYOUT & PIPING • INSTRUMENTATION • ELECTRICAL

Training Agenda Day 1

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Hands-on – mini EPC Project

Key aspects of Engineering • The Technical baseline: the Contractual requirements • Engineering organization, split of Work and resources • Interfaces between disciplines • BASIC vs DETAIL design • Document control • Engineering Interface with Procurement, Construction, Third Parties • IT • Management of changes

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The main challenge: meeting the Project schedule • FEED • EPC

How to control a Contractor • The plan • Progress measurement • Factors that could Impact progress • Engineering Controls and KPIs • Engineering Quality • Critical Points to watch

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Project development phases Front-end Loading

FEL-1 Business Planning Phase

Objective: Define the business opportunity

Content: Technical assessment, milestone schedule, estimated cost range

Deliverables: Functional requirements, economic evaluation

By: Company

FEL-2 BASIC Engineering/Conceptual Objective: Confirm feasibility,, select technology, refine cost estimate, identify risks

Content: Evaluate alternates, confirm feasibility, develop process design

Deliverables: +/-30% cost estimate, preliminary schedule, layout, process design

By: Contractor

FEL-3 FEED

Objective: refine cost estimate, prepare EPC phase

Content: Evaluate alternates, confirm feasibility, develop process design

Deliverables: +/-10-20% cost estimate, Design basis for EPC, MR for LLI

By: Contractor

gate gate

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Engineering

Documents for Inquiry: Bill of Materials / specifications

Documents submitted to client

Client

Approval/ Comments

Process Design Package (PDP)

Vendors / Sub-Contractors

Quotations Inquiries

Basic Engineering/FEED

Cost Estimate Department

Engineering basis for EPC call for tender

Client

??? ???

What else is delivered at FEED stage?

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Process design

PFDs

H&M balance

Rotating Pressure vessels Fired equipment Heat exchangers Packages etc.

P&IDs

Piping

Instrumentation

Layout

Civil

Electrical

Process data sheet

Equipment specification

Vendor drawings

The Engineering Work process synoptic

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List of common Engineering Deliverables

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Specifications

Design criteria for civil, structural and building engineering

Design specification for roads

Design specification for sewage and drainage

Specification for plant outdoor lighting

Telecommunication and information system philosophy

Instrumentation and control system design basis

Fire Protection Design

Safety concept

Design philosophy for cathodic protection

Specification for pipe supports design

Technical specification – structural steel materials and fabrication

Specification for asphalt paving

Specification for hot dip galvanized anchor bolts

Technical specification Low Voltage Motors

Technical specification for Machine Monitoring system

Technical specification for control valves

Technical specification for fire detection devices in buildings

Technical specification for wheeled fire extinguishers

Technical specification for isolating joint

Technical specification for cathodic protection materials

Job specification for supply for piping sliding plates

Technical specification for centrifugal pumps

Technical specification for tail gas incinerator

What difference can you see between the 2 sets of specifications?

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The (Basic) Engineering Design Data

Draw the Table of Contents

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Engineering disciplines: activities and deliverables

PROCESS • Design basis and criteria • Process Simulations, Process Flow Diagrams, HMB, equipment list • Process description • Equipment sizing • P&IDs • Piping specification and sizing • Instrument process specification • Process and Emergency shutdown • Flare study • Operating manual

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Process design criteria

• Design margins • Design Pressure and Temperature criteria • Equipment sizing criteria • Line sizing criteria • Control valve sizing criteria

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Engineering disciplines: activities and deliverables

PROCESS • Design basis and criteria • Process Simulations, Process Flow Diagrams, HMB, equipment list • Process description • Equipment sizing • P&IDs • Piping specification and sizing • Instrument process specification • Process and Emergency shutdown • Flare study • Operating manual

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Process simulations

Input

- Feed composition and conditions

Simulator settings

- Flow scheme - Thermodynamic model - Equipment performance

Output

- Stream flows and composition

- Equipment duty

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Block Flow Diagrams & Process Flow Diagrams

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The Process Flow Diagram (PFD)

Results from process simulations

Depicts the various Equipment within a Process (or Utility) Unit and their sequence

Shows the process controls

The individual drawing item of the PFD is the Equipment Item

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Process eqiupment sizing Case study: Production separator

Sets the gas cross section

Sets the liquid volume

Vessel size

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Process Data Sheet

Contents of the Process Data Sheet: • Design conditions • Overdesign • Fluid properties • Equipment duty • Skeleton drawing & dimensions • Material (generic type) and corrosion allowance • Specification of internals: demister, distributor, baffle etc. • Nozzles list • Allowable pressure drop, fouling factor, Cp, Cv, enthalpy curve (for HX, heaters) •Available NPSH (for pumps)

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Piping & Instrumentation Diagram (P&ID)

What purpose does a P&ID serve?

At design stage: • Defines the design basis for Piping & Instrumentation disciplines • Serves to show and agree the operating and maintenance features between

Engineer and Owner or between Engineer and Vendor • Serves to show the interface with equipment/package vendors • Perform HAZOP review

During operation: • Reference drawing for operator, work permit, plant modifications etc.

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Important features (1/3) Normal operation • Redundancy for critical instruments / safety switches Shutdown • Check valves Start-up • Pressurization • warm-up / purge lines Maintenance • Equipment isolation & bypass: valves, spectacle/blind • Nitrogen injection, vent • Drains • Control and ON/OFF valves isolation • Instrument isolation

Piping & Instrumentation Diagrams (P&IDs)

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Piping & Instrumentation Diagrams (P&IDs)

Various types of P&IDs • Legend and Symbols • Identification & Numbering • Details and Typicals • Process or Utility P&ID • Distribution P&ID • Interconnection P&ID • Pumps auxiliary P&ID • Package P&ID

P&ID representation

Details

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P&ID work sequence

IFR IFD IFC

P&ID Review HAZOP

Piping MTO & 1st PO

Piping MTO & RFQ

Vendor drawings

Piping MTO & Top-up’s

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IFC IFD IFR Contents

Comments from Piping, I&C disciplines

Comments from all disciplines

Finalized interfaces with eqt/package

Issue Piping ISOs

Collect Client comments

Perform HAZOP Perform PID review

Client comments incorporated HAZOP comments incorporated Diameter of utility lines Diameter of process lines Size, number of PSVs and CVs

Exercised Contract Option(s)

Freeze Control system I/O list Perform Piping MTO for 1st Piping purchase

IFC IFD IFR Purpose

Quiz Which revision of P&IDs has the following purpose/contents?

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Process Engineering / schedule Hands-on exercise

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Process Data Sheet vs Mechanical Data Sheet

Look at the PDS and MDS in your exercise book. What additional information is contained in the MDS? What does Mechanical design entail?

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Equipment / Mechanical

What is a package ?

What is, for Engineering, the purpose to order as a package ?

What is usually ordered as a package ?

Which is the responsible discipline ?

Which document is produced to specify a package ? By whom ?

What are the key things to consider when specifying a package?

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Instrumentation Specification for packaged units

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Test

Equipment Process discipline Equipment/Mechanical discipline

PDS Duty spec

MDS Particular Specification

General Specification

MR

Pressure Vessel

Rotating equipment

Reactor

Heat Exchanger – Shell & Tube

Heat Exchanger – Other type

Fired heater

Package

Identify the documents issued by Engineering to order each type of equipment…

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HAZOP hands-on exercise

Fill the table

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© 2014 – Hervé Baron Quantitative Risk Analysis (QRA)

case study: gas leak in Turbo-compressor building

Release Frequency Immediate ignition

ESD & Fire Fighting

Delayed Ignition

Explosion/ Flash-fire

Consequence Event Frequency (ev/y)

0,998 Jet fire ESD & FF 7,779E-030,070

0,002 Jet fire no ESD & FF 1,520E-05

1,11E-01Release/yr

0,949 Dispersion 9,827E-020,930

0,120 Explosion 1,774E-050,028

0,051 0,880 Flash fire 1,301E-04

0,972 Dispersion 5,133E-03

Yes Frequency (event/year)Jet fire ESD & FF 7,779E-03Jet fire no ESD & FF 1,520E-05Explosion 1,774E-05

No Flash Fire 1,301E-04Dispersion 1,034E-01

B04a/b/c/d 5%

Probability of immediate ignition for 1-50 kg/s release rate is 7% (from statistical data)

Gas detectors are provided inside the building, that activate isolation and depressurization. It is assumed that they operate 95% of the time.

Probability of explosion vs flash fire (12%) depends on mass of gas and degree of confinement

?

What is the frequency of an explosion?

Probability of delayed ignition (2.8%) takes into account equipment explosion protection (Ex)

Step 2: Event tree analysis

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Civil foundation calculation

Input Loads: dead, operating, test, live, wind, seismic, Soil data: bearing capacity, angle of friction, unit weight, boyancy Safety factors (for sliding and overturning) Dimensions to test

Calculation

• Stability check for sliding and overturning

• Bearing pressure check

Overturning axis

Stabilizing moment

De-stabilizing moment

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Foundation guide drawing

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Pipe-rack design

What is usually the governing load? What is the governing design criteria?

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Layout/principles

PREVAILING WIND

… … …

…

… …

Define the respective position of the 6 items as per good plant layout practice

1

2

3

5

6

4

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On-shore plant: Equipment spacing recommendations as per GE GAP Guidelines 2.5.2

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Layout principles: typical Unit Layout

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Piping installation

Unit Plot Plan Line diagram

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Piping design iso vs Shop iso

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© 2014 – Hervé Baron Piping installation work process

Piping line diagram

Plot Plan

Piping studies & layout

Piping 3D modelling

Piping stress analysis

Piping isometric drawing

Stress OK?

Piping isometric drawing IFC ?

For some lines, another check is done. By whom? For which lines?

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Piping material management work process

Piping line diagram

Plot Plan

Piping studies & layout

Piping 3D modelling

1st Piping MTO: for Inquiry

Piping isometric drawing

Stress OK?

Piping isometric drawing IFC

PFD

Process eqt list

IFR P&IDs

2nd Piping MTO, for Order

IFD P&IDs

IFC P&IDs 3rd and next

Piping MTOs

?

?

? ?

?

At which project month shall the steps take place?

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Quiz

Put the following tasks in order

Perform piping Material-Take-Off for first purchase

HAZOP

P&ID review between COMPANY and CONTRACTOR

Issue of IFR P&ID

P&ID IFC issue

Issue of IFD P&ID

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Process Control System

Case of Package controlled by Central Process Control System

What documents from the package Vendor are needed by the DCS Vendor in this case?

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Electrical consumer list

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Electrical Engineering

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61

ENDORSEMENT: case study

1. CONTRACTOR identifies, in the course of the design, that the capacity of one utility unit foreseen in the DESIGN PACKAGE is not enough. A unit with increased capacity is required.

2. A document part of the exclusions listed in the Endorsement Certificate specifies that Sea Water used for cooling should be discharged no more with no more than 10°C temperature increase. COMPANY now asks for 3°C. This required CTR to put additional cooling facilities.

Discuss CTR’s entitlement to a CHANGE ORDER in each case?

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Engineering Split of work

Discipline Paris (%) India (%)

Process/HSE Design

Equipment

Electrical

Instrumentation

Civil

Piping

What is the typical share of manhours done in home office versus low cost center?

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© 2014 – Hervé Baron Engineering Split of work/Piping

Horizontal split

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© 2014 – Hervé Baron The Engineering work sequence

Fill the missing captions

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BASIC vs DETAIL design

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Origin of changes

Identify the likely impact of the Engineering reviews on the design

New instruments

SIL review

3D model review

P&ID review

QRA

HAZOP

HAZID

New accesses

New valves

ESD logic

Blast resistance

Design criteria

P&IDs Plot Plan

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Key Engineering Milestones for an EPC

• P&ID 1st issue • LLI Material Requisition Issued for Purchase • HAZOP • Control valves, PSVs PO • issue of Plot Plan IFC • issue of IFC P&Ids • 50% ISOs issued

At which time (Project Month) must the following be issued/done to support the Project execution?

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Typical level 1 On-Shore EPC Project Engineering schedule

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Safety Engineering

In your opinion, how is Safety performing?

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Engineering progress KPIs

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EPC Key Engineering Milestones and benchmarks

Key Engineering Milestones for an EPC • P&ID 1st issue • LLI PO • HAZOP • 1st model review • 1st Piping PO • Control valves, PSVs PO • Plot Plan IFC • IFC P&IDs • 50% ISOs • Primary steel MTO • Primary steel drawings IFC

Additional Milestones for Off-Shore jobs

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Engineering Manhours benchmarks

FEED: number of Home Office (H.O.) manhours per equipment item • ??? hours

EPC: number of H.O. manhours per equipment item • ??? hours

EPC: number of H.O. manhours per USD of CAPEX? • ??? hour / mln USD

EPC: number of Procurement (Buyer, Expediter, Inspector, Transit) manhours for one Purchase Order? • ???? manhours

Please guess…

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Engineering Management Training

Your instructor:

Hervé Baron, Project Manager

Professional experience/positions held

• Process Engineer (2 years), Production Engineer (2 years)

• Engineering Manager (4 years) for EPC On-Shore 300mln USD Project

• Field Engineering Manager (4 years) for EPC Off-shore (FPSO) 1bln USD Project

• Project Manager (2 years) for 50mln USD EPC revamping

• Project Manager (1 year) for FEED and Basic Design

• Project Control Manager (1 year) for 100,000 manhours FEED

• Contract Manager (3 years) for 700mln USD and 1bln USD EPC

Training experience

Developer and instructor of IFP Training’s

• Engineering Management Training (10 sessions held),

• Project control training (6 sessions held),

Professional experience/Companies worked with

• TOTAL, for 4 years

• SAIPEM, for 8 years

• TECHNIP, for 6 years

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2015 Training schedule

3 training sessions will be held in 2015: Paris: May 26-28, September 2-4

For details and to enroll please go to: http://www.ifptraining.com/course/engineering-management-5219.html

Lombok (near Bali), Indonesia: Oct 20-23

For details and to enroll please go to: http://rhenindo.com/trainings/barons-oil-and-gas-engineering-management/

Pick the location you like!

http://www.ifptraining.com/course/engineering-management-5219.html






http://rhenindo.com/trainings/barons-oil-and-gas-engineering-management/














