CHAPTER IAim, objectives and feasibility of the dissertation

1. Introduction

The Kingdom of Saudi Arabia relies on two fossil sources to support its economy in

the long term: oil and gas. One of the most powerful organizations in this sector is

Saudi Aramco, which owns and runs a quite broad network of refineries and

distribution facilities. Saudi Aramco controls the oil reserves that exceed 266 billion

barrels per year (OPEC, 2014). Saudi Aramco plans to be the second world largest

exporter of refined oil. In order to achieve this target building new refineries will be

constructed to fulfill such growing demands in the field. It is important to clarify that

all of these projects will be sponsored by the Aramco project management department

(PMT), as professionals are responsible for the execution of different significant

stages of the process in order to deliver realistic and adequate outcomes. A major

phase will be explored that is the project close out or the termination phase, as it

refers to pre-commissioning, commissioning and start-up elements of exploring

certain aspects.

Basically there are different ways to close out or terminate a project as mentioned by

Meredith & Mantel (2009) following four types of termination:-

1. Extinction

2. Addition

3. Integration

4. Starvation

Closing out or termination a project by extinction means that project has been

successfully completed and achieved its goals: the new product has been developed

and handed over to the client; or the plant been built and accepted by its final end user

commissioned and it is running and producing its final product. Projects terminated

by this way might be successful or unsuccessful. Projects can be terminated by

institutionalizing it as a formal part of the organization that is defines what called

project termination by addition when an in-house project carried out by a project team

1

in the favor of the parent organization while the project termination by integration

method done when a successful project is completed by distributing goods, personnel,

equipment and functions between the existing elements of the parent organization. In

the other hand unsuccessful or obsolete projects can be terminated by starvation, or in

other terms cut down on resources or funds for its completion. Usually managements

go for project starvation when they don’t want to admit a project failure. Irrespective

of how successful is the project and on what method project was completed by

extinction, integration or addition there should be a plan to terminate it. Terminating

or closing out a project is not an easy job. It needs to have a plan, schedule and a

budget similar to any other phase in the project life cycle (Dvir, 2005).

In order to succeed and to have control in this phase a termination manager need to be

assigned his main responsibility is to complete the termination process effectively and

efficiently by ensuring that project is complete, delivered, accepted by the client and

final report prepared and submitted also ascertain any product support (e.g. spares,

services etc..) if necessary (Meredith & Mantel, 2009 p.565).

Even though several authors are supporting the use of a termination manager to

ensure the delivery of a successful project to its customer, and though project

termination process is an essential part in the total project, it is often overlooked by

project managers. (De, 2001p.1)

The necessity to focus on pre-commissioning, commissioning and handing over plants

to their end users during the termination process has been recognized by professionals

in the field, but such issues in regards of how the Aramco PMT department manages

this critical phase would be explored in the present research. Yet a significant gap

emerges in this context in the sense that a small number of researchers consider the

benefits of project commissioning as an integral part of the project life cycle (Dvir,

2005; Lager, 2012). The focus of this study is maintained in a direction to prove how

project commissioning can contribute to sustainability of the oil and gas industry in

Saudi Arabia. Therefore, the following aim has been outlined for the current research

project:

2

1.1 Aim

The primary aim of this research is to explore and assess persistent problems

associated with project commissioning; as such issues tend to occur while dealing

with customers. It is relevant to note that the occurrence of specific problems can be

linked with specific factors that should be examined in detail so as to understand the

way in which the entire oil and gas sector works under certain conditions. The most

important aspect behind the identified problem refers to proposing viable solutions to

maintain an effective and transparent process of closing out of projects. It should be

specified that closing out of project usually involves the following processes:

1. Obtaining an approval from clients, which would illustrate that the project's

objectives have been met;

2. Planning and installing deliverables by selecting a reasonable period;

3. Commissioning and start-up process;

4. Writing the final report for the project;

5. Conducting a post implementation audit to capture lessons learned at all

essential phases (Kendrick, 2009 p. 293; Wysocki, 2009 p. 459)

1.2 About the Aramco PMT process

With the above introduction of Saudi Aramco as a company, and to some

extent discussing of how important this company to the Saudi economy, it is time to

look at how Saudi Aramco structure and manages their projects. The intention of this

portion is not to go into every single detail of Aramco way, but provide the reader

with a high level overview. This is might be redundant for some readers, while I hope

it would be of use for others.

In a big organization there will always be a need to balance between giving

full authority and the necessary freedom to employees to do their jobs in an effective

and creative way, versus the senior executive management desire to have control over

the company budget and how and where capital investment is spent etc... Therefore in

order to have this balance achieved is to have limitations to what each position or

employee can undertake by himself by having a procedure and a system for specific

jobs and tasks. Such systems are unavoidable with companies of Aramco size and

especially of project with total expenditure in the range of several billions of US

dollars. For that reason a system been established to govern such process and that

3

process of Designing and construction of projects which is handled by the Aramco

project management team as stated by AL-Hajri (2003, pp.4-30) consists of seven

phases as follows and as shown in below Figure 1:-

1. Phase I - Study and development

2. Phase II - Preliminary Engineering

3. Phase III- Funding

4. Phase IV- Detailed Engineering

5. Phase V - Procurement

6. Phase VI- Construction

7. Phase VII-Start Up

Figure 1: The Phases of Design and construction of project. From (AL-Hajri, 2003 p.6)

Phase I - Study and development

Usually Aramco's projects in the Study and development phase through

several stages as shown in Figure 2, which will results in the following:-

Formulate the Business Plan.

Develop the Planning Brief.

Create the Capital Program and Budget Item (BI)

Prepare the Engineering study package.

Prepare the Design Basis Scoping Paper (DBSP)

4

Figure 2: Study and development Phase. From (AL-Hajri, 2003 p.7)

Phase II - Preliminary Engineering

The development of Preliminary Engineering comes second producing the

following as shown in Figure 3:-

Draft the Project Execution Plan (PEP)

Develop the Master Contracting Plan.

Create the Project Proposal (PP).

Develop a Detailed Expenditure Request (ER).

Develop a Contract for Detailed Engineering & Construction

5

FPD: Facilities Planning Department.PS&CD: Project Support and Controls Department.DBSP: Design Basis Scoping Paper.PMT: Project Management Team. From (AL-Hajri, 2003 p.7)

Figure 3: Preliminary Engineering Phase. (AL-Hajri, 2003 p.11)

Phase III- Funding

When the project proposal is approved comes The Funding in the third Phase

in Aramco project cycle process which will produce the following as shown in figure

4:-

Prepare the Expenditure request Estimate Summary.

The review by the Executive Management.

The review by the Management Committee.

The Approval of ER by the Executive Management.

6

Figure 4: Funding Phase. (AL-Hajri, 2003 p.15)

Phase IV- Detailed Engineering

After The Approval of ER by the Executive Management comes the Detailed

Engineering in the fourth Phase as shown in Figure 5, which will includes the

following:-

Develop the Design Drawing/ Specs.

Create the Material Procurement List.

Start Procuring Aramco Material / Direct Charge (DC).

Develop the construction Bid Packages.

The Main objective of the detailed engineering Phase is to develop the Project

drawings, specifications, initiate Material procurement and develop the construction

bid packages.

7

Figure 5: Detailed Engineering. (AL-Hajri, 2003 p.17)

Phase V - Procurement

In the fifth Phase Material Procurement starts and as shown in Figure 6, this

phase includes the following:-

Procurement of Long Lead Time Material and Equipment.

Procurement of Other Material and Equipment.

Procurement of Direct Charge Surplus Material and Equipment.

Procurement of Material which available in the Saudi Aramco System.

8

Figure 6: Procurement Phase. (AL-Hajri, 2003 p.22)

Phase VI- Construction

The sixth Phase is the construction Phase which includes the following as

shown in Figure 7:-

Contract Award (if it is a lump Sum Procure Build Contract).

Contractor Mobilization

Commence Construction.

Monitoring Construction Progress.

Pre-commissioning.

Mechanical Completion.

9

Figure 7: Construction Phase. (AL-Hajri, 2003 p.24)

The construction Phase starts when the contract is awarded to the construction

contractor. Consequently, contractor will mobilize his staff, manpower and

equipment, and arrange to set working offices, stores and living camps for his

manpower in order to support the project construction.

This phase involves a lot of monitoring, job follow up and progress reporting.

Loss prevention section, inspection department and the proponent (Proponent special

experienced staff from all departments such as operation and maintenance and they

act here as the customer or the final end user) will work with the project management

team in monitoring the project.

Acceptance Committee and its chairman are established and appointed by the

proponents at the beginning of the project construction no later than the 60% stage of

the actual completion of the construction Phase. At the beginning of the Acceptance

Committee formal meetings representatives of the Acceptance Committee members,

PMT, inspection Department, loss prevention and the proponent have to be

designated.

10

When the construction stage reaches 60% PMT will advise the proponent and

request a formal kick-off meeting of the Acceptance Committee to agree on the punch

list system and procedures to start its implementation.

When all the major components of the system have been installed and pre

commissioned and verified by the PMT that the system is ready for punch listing, then

PMT will request all Acceptance Committee representatives to submit their punch

listing items. Usually those punch listing items are submitted to PMT within one week

of that request.

Four weeks away from the scheduled Mechanical completion date, the PMT

will inform the acceptance committee that the facility is complete and ready for MC

inspection with the exception of the items on the Master construction punch list. By

the next Acceptance committee meeting, all the Acceptance committee members are

provided with a list of all outstanding items of the system punch list with the Yes/No

items including the originator's recommendations for each item.

1. Yes item: meaning that the Punched item may impact the safe commissioning,

start up, and operation of the facility.

2. No item: meaning that the Punched item will not impact the safe

commissioning, start up, and operation of the facility. (AL-Hajri, 2003 p.26)

In period of three working days after having the above notification, the

Acceptance committee Chairman plans, schedules and completes the MC inspection

which is usually a detailed review of the outstanding system punch items also the

inspection of the site condition are included.

Two days after the MC inspection completion, the Acceptance committee

Chairman will call for an Acceptance committee meeting, in that meeting Committee

members will submit any additional exception items related to unfinished work or

other proposed exception items resulted during the last MC inspection walk through.

The Acceptance committee Chairman in this meeting will review the members'

recommendations of the "Yes" and "No" items. Then it is the responsibility of the

PMT to prepare a consolidate exception item list for action. Disagreements regarding

critical safety items have to be resolved before signing the Mechanical Completion

Certificate.

11

After establishing the Mechanical Completion Certificate Exception item list,

Any deletion of any items from the Exception item list or changing a "Yes" item to

"No" item needs an approval from the Acceptance committee Chairman. The

Acceptance committee or their nominees reviews on a constant basis, the MC

Certificate Exception item list to make sure that all "Yes" items that would prevent

any safe operation of any facility in the project been completed and signed off.

PMT will inform the Acceptance committee Chairman, when all the assigned

"Yes" items been tackled and completed, accepted and signed off by the originators.

Within three working days of receiving this confirmation, the Acceptance committee

Chairman convenes for an Acceptance committee meeting to instruct the PMT to

route the form with the attachment to obtain the signature. After getting all the other

signatures the PMT will present the MC certificate to the Acceptance committee

Chairman to obtain the proponent's representative signature before distributing the

original approved MC Certificate.

The MC Certificate sign off indicates the custody acceptance of the facilities

by the proponent. After this handover of the facilities to the proponent, any routine

facility maintenance will be the proponent's responsibility. Remaining work By PMT

or the contractors in order to clear the remaining "No" items can only be

accomplished under the supervision of the proponent. After the Mechanical

completion, PMT is responsible to provide a certain agreed number of contractor's

manpower and vendors to assist in the commissioning and start-up Phase.

Those crews of manpower and vendors are released upon the completion of the start-

up of the facility (AL-Hajri, 2003 pp.24-27).

Phase VII-Start Up

The Start-up of the facility is the last phase of the project as shown in figure 8

and includes the following:-

Performance Acceptance.

Site Final Accept Tests.

System Handover.

Complete Exception Item lists.

Financial Close-out.

12

ERC: Expenditure Request Closed

Figure 8: Start-Up Phase (AL-Hajri, 2003 p.28)

After the approval of the MC Certificate, the commissioning and start-up of

the refinery or the facility will begin. The commissioning and start-up process is the

responsibility of the proponent organization in addition to the assistance of the PMT.

The PMT and the proponent, in conjunction with each other are responsible for

developing the commissioning plans, while the proponent is responsible for the

development and the execution of the facility start-up and the performance test plans

and it governing process. The MC certificate acceptance signifies the commencement

of the commissioning, start-up and initial operation period which will prove that the

facility is performing in accordance with the approved project scope. The

performance period is sixty days after singing the MC Certificate. During this sixty

days the proponent will review the facility performance, in relation to the operating

conditions, in accordance with the approved project scope, also proponent will

prepare a list of performance related issues that requires a corrective action if the

facility is not up to the desired performance.

A Performance Acceptance Certificate (PAC) is developed by the Project

Management Team for each facility after the final MC Certificate for the facility has

been signed. The Agreed PAC deficiency Items will be the basis of the PAC

13

ERC: Expenditure Request Closed

deficiency Item list that will be attached to the PAC at the time of signing. After the

PAC is signed the facility will be put on stream.

The Fixed Assets and Work-in-Progress (FAWIP) at the last step of this

Phase the Accounting Department start the preparation for the closeout of all job

orders related to the facility, upon the acceptance of the MC Certificate. PMT team

will assist in the financial closeout of the project and maintains the project records and

files. At the end of this phase the Expenditure Request will be closed (AL-Hajri, 2003

pp.28-30).

1.3 Research questions

When certain processes are intended to close out, various success factors should be

considered, such as pre-commissioning, commissioning and handing over plants to

their end users. Although planning and certain preparations may not be initially

perceived as important parameters of closing out of projects, bringing the focus onto

these aspects can help researchers provide feasible solutions of sustainability. Thus, it

is expected to emphasize the schedule, along with discussing aspects of hand over

packages and risk mitigations plans. Commissioning and start-up procedures should

be identified by operation and maintenance teams; in addition, it is essential to

strengthen the establishment of end-user training and continuous support function in

advance of the implementation phase to avoid catastrophic failures after plants' start-

up (Wysocki, 2009 p. 644).

In order to provide a clear direction of the research process, the following research

questions have been identified for this study:

1. Will the participation of the final end users in the commissioning and start-up

process of the plant have a positive impact on the delivery of successful

project outcomes in the long term? Contribute to the customer benefits from

the project and to its overall success.

2. What are the precise effects of the engagement of an escort team representing

the final end users during the execution of the project from the initial phase till

the end? Contributes to the efficiency of the project and to the customer

benefits from its outcomes

14

3. Is the PMT support in handing over the project to its final end users associated

with positive effects on the entire start-up process? Positively contributes to

the customer benefits from the project.

4. How does the initial preparation on the behalf of end users affect the start-up

process in its different stages? Positively contributing to the overall success of

the project and the customer benefits from its outcomes.

1.4 Research Objectives

It has been identified that the close out and hand over phase is quite essential for a

smooth commissioning and start-up process for new oil refineries. Based on similar

assumptions, it is significant to note that the identification of the allocated processes

for the close out phase in Aramco is considered fundamental. This includes a solid

focus on the effectiveness of PMT procedures, which are completed with the purpose

to highlight, identify and evaluate problems encountered during the handover

processes. In this paper we will examine the relationship between preparing and

planning of project close out, commissioning and project success. That will help on

analyzing the relationship between the efforts been spent in preparing and planning

the project transferring phase to its final end user and how much success been

achieved in result of that based on previous different points of view.

1.4 Feasibility of the study

The researcher has ensured adequate preparation at all stages of the research project to

bring it into successful outcomes. The collection of important information and

primary data is considered an integral part of the research process. An appropriate

data collection tool, which was outlined for this study, refers to distribute a survey

among project managers, project engineers, involved contractors and operation and

maintenance experts in the respective organization. The researcher has extensively

focused on exploring and evaluating specific issues related to process flow and

relevant department procedures. The feasibility of the study indicates that the

researcher has demonstrated a serious responsibility to provide practical insights into

the identified problems in the oil and gas industry in Saudi Arabia. The emphasis is on

the improvement of the execution of certain phases in order to reduce cost and start-

up delay within the organization. In turn, this would lead to improved organizational

performance and an overall project success.

15

CHAPTER II

2. Literature review

In this chapter we look at the available literatures that are related to the

research subject. Babbar et al. (2000), indicates to the importance of this part to

dissertation by stating that "literature for graduate students can be of great value,

mainly as they assess the fit of various institutions for their training and research".

It has been identified in the literature that a substantial part of Aramco refinery's

projects are sponsored by the Aramco project management department, which is

responsible for the project delivery in a timely and transparent manner. Many projects

are executed through several phases as mentioned above in the binging of this chapter,

but for the purpose of the current study the researcher is mainly interested in

exploring the feasibility of the last phase, in particular the elements of close out and

start-up phase. Such a focus allows individuals to obtain a better understanding how

the effective pre-commissioning, commissioning, close out and handing over plants to

end users contributes project efficiency, customer benefits and project overall success.

1. Will the participation of the final end users in the commissioning and start-up

process of the plant have a positive impact on the delivery of successful

project outcomes in the long term? Contribute to the customer benefits from

the project and to its overall success.

2. What are the precise effects of the engagement of an escort team representing

the final end users during the execution of the project from the initial phase till

the end? Contributes to the efficiency of the project and to the customer

benefits from its outcomes

3. Is the PMT support in handing over the project to its final end users associated

with positive effects on the entire start-up process? Positively contributes to

the customer benefits from the project.

4. How does the initial preparation on the behalf of end users affect the start-up

process in its different stages? Positively contributing to the overall success of

the project and the customer benefits from its outcomes.

16

Aramco PMT team had pulled a lot of efforts to improve their process since

they started in 1977 when they started their first project which was gas collection and

distribution program to stop flaring and save that natural gas for the kingdom of Saudi

Arabia through a whole lot of improvement processes such as lessons learned, value

engineering, integrated and continues teams and effective contracting strategies.

Project quality has improved significantly and start up time has been reduced to one

month for most of the projects (Palmer and Mukherjee 2006). As indicated by Palmer

and Mukherjee (2006 p.7) that planning for startups is an extensive set of tools and

techniques used by all project stakeholders, PMT, operations, contractors, etc., to

enable a successful plant startup and stable long term operation. Yet there are certain

gaps in the literature considering that the mentioned issues have not been discussed in

depth. Buell (1967) stated in an early article that the reason for not having enough

information on this subject because it is hard to define precise guidelines for projects

termination. A possible explanation is that minor number of researchers perceives the

benefits to explore the respective phase of project commissioning and startup, even

though it represents a crucial component of the entire project life cycle (Dvir, 2005;

Lager, 2012). Therefore, the organization of the literature review is based on the

concepts of the discussed phase so as to bring the audience's attention to optimal ways

in which project success outcomes can be delivered over time. Essential arguments

have been presented as part of the research process.

Initially, the emphasis is on the transfer of specific projects to maximize their

delivery to the final users. As part of such exploration, researchers have been

committed to exploring the impact of planning and extensive preparations for

commissioning, which would bring out adequate project success. Researchers (Lager,

2012) (Palmer and Mukherjee 2006) have examined the relationships between the

stages of planning and preparing projects to hand over to the final users, which is

believed to increase the overall project success. Dvir (2005) mentioned that four

17

planning and preparation facets are considered throughout the process, such as

development of operational & maintenance requirements, customer participation in

the development process, developers' preparations for turning over the project to the

final users, and final user preparations for introduction into operational use, along

with other three measures of project success (project efficiency, customer benefits,

and overall success)" (Dvir, 2005 p. 257). The study described by Dvir (2005) was

based on data obtained from 110 different defense projects and it included two types

of analysis, which is regression and correlation between the two set of variables.

The conclusions of the research propose and recommend that the customer

participation in the development process and the final user preparation have a quite

solid impact on project success. Moreover, the aspect of customer participation in the

development process had demonstrated a good correlation with the overall dimensions

of project efficiency, whereas final user preparation had high correlation with

customer benefits (Dvir, 2005 p. 257). Even though customer involvement does not

represent a usual process in the development of refineries the Aramco PMT substitute

the customer by the proponent to act as the final end user, which interest the

researcher in exploring the specific outcomes regarding the final user preparation for

the commissioning and start-up process. In turn, this ensures adequate contribution to

expanding the feasibility of the respective industry so that appropriate conclusions can

be presented from the entire research.

2.1 Importance of Start-upsScholars in the field also have explored the importance of start-up when it

relates to new plants and process technology, which is implemented in various

process industries (Lager, 2012). The study of different organizational issues

contributes to a better understanding of the factors of arranging similar processes in a

proper manner. According to Lager (2012, p. 3), there has been an extensive

discussion of start-up process plants. However, the necessity to develop a new, more

vibrant conceptual framework has been outlined in research. This could have been

helpful in organizing start-ups as well as discussing various alternative structures for

start-up organizations. In this context, Lager (2012) suggested four types of

organizational models, as they were derived from a thorough review of the literature

in the field as well as through the researcher's own experience in start-ups.

18

Similarly to the conclusions made by Dvir (2005), Lager (2012) stated that,

"The frame work must be tested and validated in real-life start-up situations and in

further empirical research" (Lager, 2012 p. 3). Such a conclusion can be properly used

in the organizational context especially by firms in their process industries. Another

significant aspect that may be considered is that certain comparisons can be made

between the refineries' start-up organization model with one of the suggested models

to provoke and trigger discussion. In addition, this may contribute to guiding the

present research in a relevant direction, which in turn would reflect in a flexible,

smooth process of handing over projects to the final users in the industry sector. It has

been identified in the research literature that the commissioning and the start-up

process require substantial strategic planning, communication, teamwork, training, co-

operations and leadership. All of these aspects are subjected to exploration in the

present study, with the idea to bring out essential inferences that can present adequate

implications for practice in the industry.

In a study by Kirsila et al. (2007), the focus is on the importance of integration

as an emerging project management concept. As a result, the researchers have

explored the relevance of the entire commissioning process as part of extensive

industrial deliveries. Integration has been considered an appropriate solution to extend

the innovative capacities of products and services (Brady et al., 2006). System

sourcing has been identified as an essential element, which facilitates the integration

of particular goods and services in an industry (Davies and Hobday, 2005). The

notion of systems integration implies that engineers and technology specialists are

focused on the production of adequate products and services. In order to prove the

dimensions which were mentioned, Kirsila et al. (2007) conducted interviews in

project-based business units by selecting businesses in the manufacturing and

equipment supply industry. A significant finding indicated in this study is that

engineers in the commissioning phase tend to perceive commissioning as a problem-

solving process.

The relationship between project planning and project success was adequately

explored by Dvir et al. (2003). Three significant aspects have been discussed by the

researchers, such as definition of requirements, technical specifications and project

management processes. Thus, Dvir et al. (2003) have relied on information obtained

19

from defense research and development projects in the industry (Danese et al., 2004).

An important finding illustrated by the researchers is that project success emerges as

quite insensitive to the way management processes are applied in practice. Moreover,

it has been argued that project success is positively interrelated with the development

of various technical specifications (Galbraith, 2002).

Lipovetsky et al. (1997) also have discussed the implications of project

success and how it translates to the context of modern organizations. Internal

measures represented by technical and operational goals have become an integral part

of the notion to ensure optimal project success (Santos and Eisenhardt, 2005). The

implementation process itself has been pointed out as an essential aspect of projects.

The focus of the author in the research that differs from above mentioned

authors is maintained in a direction to prove how project Pre-commissioning,

commissioning and the process of starting up refineries owned or executed by Saudi

Aramco PMT, can contribute to sustainability of the oil and gas industry in Saudi

Arabia. Therefore, the primary aim of this research is to explore and assess persistent

problems associated with project closing out phase; as such issues tend to occur while

dealing with different stakeholders. It is relevant to note that the occurrence of

specific problems can be linked with specific factors that should be examined in detail

so as to understand the way in which the entire oil and gas sector in Saudi Arabia

works under certain conditions. The most important aspect behind the identified

problem refers to proposing viable solutions to maintain an effective and transparent

process of closing out of projects.

20

CHAPTER IIIResearch MethodologyThe research methodology chapter of the research study mirrors the research

techniques and methodologies that would be taken into consideration with the view to

gather ample and resourceful data by way of research questions. Similarly, the

research methodology chapter of this dissertation focuses upon on gathering facts

related to problems associated with project commissioning; as such issues tend to

occur while dealing with customers. It also throws light on the way in which the study

has been carried out. At every stage of the research ethical and moral aspects have

been properly considered.

Justification of Theoretical Approach

The researcher has ensured adequate preparation at all stages of the research project to

bring it into successful outcomes. The collection of important information and

primary data is considered an integral part of the research process. An appropriate

data collection tool, which was outlined for this study, refers to distribute a survey

among project managers, project engineers, involved contractors and operation and

maintenance experts in the respective organization. The researcher has extensively

focused on exploring and evaluating specific issues related to process flow and

relevant department procedures. The feasibility of the study indicates that the

researcher has demonstrated a serious responsibility to provide practical insights into

the identified problems in the oil and gas industry in Saudi Arabia. The emphasis is on

the improvement of the execution of certain phases in order to reduce cost and start-

up delay within the organization. In turn, this would lead to improved organizational

performance and an overall project success.

Research Purpose

It has been identified that the close out and hand over phase is quite essential for a

smooth commissioning and start-up process for new oil refineries. Based on similar

assumptions, it is significant to note that the identification of the allocated processes

for the close out phase in Aramco is considered fundamental. This includes a solid

focus on the effectiveness of PMT procedures, which are completed with the purpose

to highlight, identify and evaluate problems encountered during the handover

21

processes. In this paper we will examine the relationship between preparing and

planning of project close out, commissioning and project success. That will help on

analyzing the relationship between the efforts been spent in preparing and planning

the project transferring phase to its final end user and how much success been

achieved in result of that based on previous different points of view.

Research Paradigm

The literature review chapter above without any doubt ascertained that this study isn’t

about being distressed or predisposed regarding any approach. The research put

forward till now from the literature is inclined towards individuals’ interpretations and

meanings and for that reason the interpretive approach was employed, which lays

emphasis on collecting and scrutinizing quantitative facts, which could built up

insightful and significant findings. Nevertheless, Drake et. al. (1998) assert that the

level of the explanation moves around the degree to which it allows other humans to

decipher an occurrence as well as formulate connotation around those being analyzed.

As a result, the interpretive concept was used for this study. In addition, Orlikowski

and Baroudi (1991) add to it by stating that the interpretive approach assigns logic to

an event on the basis of meaning assigned to them by the individuals plus all the

stakeholders related with the event. Imperative approach concentrates on traditions,

principles and assessment structures. Further, Darke et. al. (1998), state that the

overall notion of interpretive approach sees individuals as social performers, around

whose views and perspectives the entire approach moves.

Going ahead, the research aims to scrutinize the actual world settings by probing the

data collecting from a number of sources including interviews, examination along

with textual data. Nonetheless, the study puts forward exceptional environment to

carry out case sourced research. Researcher will use a structured questionnaire survey

that will be filled at least by 30% of the key personal project managers, project

engineers and operation and maintenance experts representing the final end user in

which they can gather the necessary data to solve the research questions. The survey

will be done by sending self-completion questionnaires by E-mail. The questionnaires

will include both open end questions and closed ended questions. The closed-ended

questions will be measured by applying the Likert Scale in five point response scale

(Allen and Christopher, 2007). Furthermore in depth interview will be hold with key

personal in both involved parties in this research PMT and the final end user the

questions will be around what make a successful project close out and smooth hand

22

over to the final end user. Moreover, as Darke et al. (1998) mention that case study is

one of the highly adopted and effective research techniques since it helps in precisely

understanding the intricacies of links and connections amongst the concepts, it is

extremely appropriate for this study. The company chosen for this research is Saudi

Aramco. As a result, the case study presented excellent means for finding out

problems associated with project commissioning; as such issues tend to occur while

dealing with customers. Further, the paragraphs below mirror the epistemology and

the ontology notion associated with interpretative technique.

Epistemology

Epistemology is concerned with the nature of knowledge claims. From an interpretive

perspective, Archer (1998) identifies two positions that can be adopted; “‘non

positivism’ in which facts and values are intertwined and hard to disentangle, and

both are involved in scientific knowledge; and ‘normativism’ which takes the view

that scientific knowledge is ideological and inevitably conducive to particular sets of

social ends”(Walsham, 1995). This study adopted the latter in that knowledge is

viewed as subjective and based on experiences.

Ontology

Ontology is concerned with the nature of reality. From an interpretive perspective,

Archer (1998) also identifies two positions that can be adopted; “‘internal realism’

which views reality-for-us as an inter-subjective construction of the shared human

cognitive apparatus, and the ‘subjective idealism’ where each person is considered to

construct his or her own reality” (Walsham, 1995). This study considered both as

whilst reality is viewed as a product of one’s own mind (not as out-there), the nature

of the research questions involve notions of congruent/shared frames, inscriptions and

cultures, based upon interactions.

Case Study Approach

Yin (2009) defined a case study in a twofold definition. The first described the scope

of the case study: “a case study is an empirical inquiry that investigates a

contemporary phenomenon in depth and within its real context, especially when the

boundaries between phenomenon and contact are not clearly evident (Yin, 2009)”.

The second section described technical characteristics: “the case study inquiry copes

with technically distinctive situation in which there will be many more variables of

23

interest than data points, and as one result relies on multiple sources of evidence, with

data needing to converge in a triangulating fashion, and as another result benefits

from the prior development of theoretical propositions to guide data collection and

analysis (Yin, 2009)”.

Case Studies have featured prominently in works over the last 30 years, as they

appear to have provided significant contributions to theory development in multiple

management areas (Barratt et al., 2011). Case studies have also proven invaluable for

the “development of a nuanced view of reality including the view that human

behavior cannot be meaningfully understood as simply the rule-governed acts found

at the lowest levels of the learning process and in much theory (Flyvbjerg, 2006)".

They therefore allow for a better analysis of both social processes and relationship

complexities in organizations, by combining different data collection methods such as

interviews, questionnaires, observations and archives (McIvor, 2009). Barratt et al.

(2011) segmented case studies into two major fields, deductive and inductive.

Deductive case studies focus on theory testing, while rarely recommended by

researchers for this purpose, while the Inductive approach is commonly adopted

where the main objective is to build or develop theory.

Case-study Method Advantages

Case studies can be used for different purposes such as submitting descriptions,

testing theories or generating theories (Eisenhardt, 1989). They display three key

advantages: By supporting the development of novel theories, producing potentially

testable theory and ensuring the "emergent theory" is likely to be empirically valid

due to its proximity to research subject reality (Eisenhardt, 1989). Other advantages

include the ability to study the phenomena in reality, thus linking theoretical

conjecture with practical application (Meredith, 1998). A primary purpose of this

paper remains to better understand the problems associated with project

commissioning; as such issues tend to occur while dealing with customers

Case-study Method Drawbacks:

Researchers have primarily found it difficult to generalize the outcomes from case

study research (Yin, 2009). Case studies have often been charged with not promoting

generalization, and treated as 'samples' rather than a method to expand on theory (Yin,

2009). The biggest drawback exists in the inability to screen and test investigators

abilities impartiality and capability when conducting case study research (Yin, 2009).

Researchers also criticize the lack of precision demonstrated by investigators when

24

employing case studies (Yin, 2009). Instances of such behavior include the

investigator becoming sloppy, not adhering to regulations, and allowing preconceived

notions to influence results and conclusions (Yin, 2009). Eisenhardt (1989) felt case

studies introduced excessive depth to the outcome rather than providing an overall

simplified perspective. Past studies have been accused of being long and unreadable

when case study methodology is confused with ethnography or participant-

observation (Yin, 2009). In spite of such criticisms, case study research has proved

invaluable in understanding problems associated with project commissioning; as such

issues tend to occur while dealing with customers (Voss et. al., 2002).

Using Quantitative Approach

Barratt et al. (2011) felt case study methods required justification in the conducting of

exploratory research to explain a phenomenon. This involves asking "how" and

"why", while being mindful of the context and participants (Barratt et al., 2011). A

quantitative case study uses multiple interpretative techniques when describing and

translating the occurrences in the social environment, rather than looking solely at the

repetition of events. It supports a substantial diagnosis of the interpretation of the

social world mechanisms by its participants (Bryman and Bell, 2007). It is thus an

appropriate method when analyzing investigations where it is impossible or

inappropriate to collect and substantiate empirically quantitative data. Quantitative

studies thus places great emphasis on everyday interactions and practices rather than

artificial environments and hypothetical situations (Flick, 2006).

It increases the relevance of findings by leveraging the practical experiences of

managers (Barratt et al., 2011), and provides the "tools for researchers to study

complex phenomena within their contexts” (Baxter and Jack, 2008). Depending on

the researchers’ reflections when using multiple methods, this leverages the flexibility

of the researcher and research subject (Flick, 2006). The collection and analysis of

data in the following case study, will utilize a variation of both the deductive and

inductive quantitative approaches. Both techniques will be explained in greater detail,

further in the chapter. This study will thus aim to uncover the problems associated

with project commissioning; as such issues tend to occur while dealing with

customers.

Using Single Case Study

In the past, single case studies have often been criticized as they lack sufficient

opportunity for comparison and restrict discussion (Barratt et al., 2011). Eisenhardt

25

(1989) said the generalization of obtained results potentially proved difficult through

this method. Some researchers are led to conclusions based on a narrow avenue of

feedback far split from the reality affecting other entities in the market (Flyvbjerg,

2006). Yet case study approaches have proven valuable in the exploring and

developing new theory independent of what dictates policy for the majority of the

market (Scapens, 1990). Yin (2003) feels the primary purpose of case studies is to

answer questions of "why" and "how" when examining contextual conditions which

may have significance in the phenomena under study. Barratt et. al. (2011) found

single case studies allowed exploration of a phenomenon in greater detail, Voss et. al.

(2002) said they provided the chance to examine different contexts in the same case

and Yin (2009) stated they prove useful only when the phenomenon being explored

has limited research or empirical development.

The application of a single case study is appropriate here as there is insufficient

international research on strategic collaborative ventures and the barriers to achieving

such buyer-supplier relationships in mainland Asia, especially India. The use of

published data is therefore limited in the use of local journal articles, web pages, and

publications as they yield no substantial information. Thus, this single case study

offers great depth rather than exploring several units at a cursory level in a limited

time frame (Voss et. al., 2002). The exploration of research and evolution of both

Supply chain alignments through logistics networks in the Indian subcontinent are

severely restricted both theoretically and practically. While significantly attributed to

the country's developing transportation and information systems, there are multiple

other factors involved.

Data Collection

The research was carried out in two ways; collecting primary data through surveys

and using secondary sources. First of all, the primary data and information was

collected through survey technique. The key reason behind adopting the survey

method are the several benefits like easiness of administration, prompt delivery, low

cost, superior data quality as well as general expediency linked with this method of

data collection. The survey questionnaire was devised bearing in mind the research

aims and objectives and the facts gathered were analyzed accordingly. According to

Fontana and Frey (1998), the method of surveying is one amongst the highly effective

and powerful techniques to gather data and appreciate associate human beings. It is

basically a conception that is appropriate for nearly all methods. With respect to

26

interpretive case studies, surveys offer a researcher the chance to “access the

interpretations that the participants have regarding the actions and events which have

or are taking place, and the views and aspirations of themselves and other

participants” (Washam, 1995). Moreover, this aided in amassing useful data in highly

effective manner, enabling easy comparison plus understanding.

Researcher will use a structured questionnaire survey that will be filled at least by

30% of the key personal project managers, project engineers and operation and

maintenance experts representing the final end user in which they can gather the

necessary data to solve the research questions. The survey will be done by sending

self-completion questionnaires by E-mail. The questionnaires will include both open

end questions and closed ended questions. The closed-ended questions will be

measured by applying the Likert Scale in five point response scale (Allen and

Christopher, 2007). Furthermore in depth interview will be hold with key personal in

both involved parties in this research PMT and the final end user the questions will be

around what make a successful project close out and smooth hand over to the final

end user.

Apart from primary facts, the study also involved collecting huge amount of

secondary facts from a number of sources including newspapers, past researches,

textbooks, journals, online sources etc.

Using Survey Questionnaires

Questionnaires were used as the primary source of data collection. There are two main

types of questionnaires – fixed response and open-ended (Denscombe, 2003).  Fixed

response questionnaires only permit the respondent to answer in a certain way, often

in the affirmative or negative (Denscombe, 2003).  These may be considered ‘coded

answers’.  Open-ended questions allow respondents to fill in answers as they please.

While such questions may also be standardized, it becomes harder for the investigator

to categorize, or code, all the answers (Denscombe, 2003). The responder may

diverge from the topic while quoting the involved benefits and hazards, often citing

that the response varies when dealing with different situations (Denscombe, 2003).

The use of questionnaires provided many advantages to both the investigator and

recipient.

27

Benefits to the Questionnaire Recipient:

1. It allowed them to evaluate and prepare subject material, thus not being caught

unaware in an interview.

2. Consult additional material and personnel relevant to the question based on

their position in the organization.

3. Provide detailed feedback unrestricted by time in an interview session.

4. Elaborate on descriptions and examples.

5. A comfortable question delivery method to deal with.

6. Clarify their doubts on the current situation and relationship status in

preparation for the upcoming discussion.

Benefits for the Investigator:

1. Supports quick data collection and avoids synchronizing time when collecting

feedback from a global audience.

2. It is a more standardized method of data collection, as questionnaires are more

objective compared to interviews (Denscombe, 2003).

3. It is cost effective and practical method of data collection.

4. Designed to reach a large audience in record time (Denscombe, 2003).

5. Less intrusive into the respondents life as it does not interrupt the respondents

life (Denscombe, 2003).

Drawbacks of Using Questionnaires:

The use of questionnaires is not without major disadvantages to flexibility,

misinterpretation of answers, the absence of relevant information and the divergence

of the source from the core question being posed (Denscombe, 2003). The following

list describes these disadvantages:

1. Inability to capture immediate changes in emotion/feelings or behavioral

changes when discussing sensitive information (Denscombe, 2003).

2. Participants may be forgetful or not consider the full context, thereby omitting

important information.

3. Too much data to analyze from open-ended questions.

28

4. Participants may misinterpret the real question being asked or deviate from the

matter entirely (Denscombe, 2003).

5. Inability to determine how truthful or forthcoming the respondent is.

6. Inability to change questions midway through the answering process due to a

lack in foresight of the investigator in framing the questions (Denscombe,

2003), hence less reactivity.

7. Potential for high variance in responses. Questions may be interpreted by

respondents in ways the researcher did not intend or foreseen.

8. Questionnaires can constrain or distort the way respondents answer and may

thus lack validity.

9. Respondents can be influenced to answer in certain ways by the researcher or

the questions (Denscombe, 2003).

To overcome these drawbacks and in order to introduce greater flexibility, a second

round of information gathering was scheduled by conducting indirect surveys.

Conducting Surveys

Surveys and discussions were held in an attempt to overcome the disadvantages

presented by the use of questionnaires as the sole source of data. Yin (2009) believed

the surveyor has two main tasks. Firstly, follow the line of inquiry in the case study.

Secondly, to ask the real question in an impartial way that also serves the needs of the

line of inquiry of the research. Interviews may be direct (involving on-site visits and

face-to-face conversations), or indirect (using WebEx/Skype conferences and

telephone conversations).

Like questionnaires, Interview questions may be fixed-response or open-ended. The

format may also be structured, semi-structured, or unstructured (Yin 2009). It depends

greatly on the amount of control the interviewer wishes to relinquish to the

interviewee, when directing the session (Yin 2009). Maylor & Blackmon (2005)

recommend the adoption of un-structured interviews for a case study research because

the method advocates using emerging data. The interviewee is directed to a general

area which he wants to discuss, and then allows the issues or information to emerge

29

from the conversation (Maylor & Blackmon, 2005). However, Yin (2009) suggested

that such conversations should be guided through a semi-structured discussion, rather

than being rigidly structured or completely unstructured. Semi-structured interviews

presented more chances for the subject to express his viewpoints than in a standard

interview or questionnaire (Flick, 2006). It also ensured a steady hand is directing the

discussion towards the successive questions and the ultimate research objectives.

The surveys were thus semi-structured discussions, permitting limited divergence and

based on the completed questionnaires submitted by the participants. A major reason

the interviews were kept semi-structured was because this researcher wanted to

explore both the preconceptions which shaped the literature review while providing

an avenue for the various emerging themes discussed by the participants. If

participants elected not to fill the forms, then a direct interview was conducted.

Ethical Considerations

Ethical considerations of surveys include honesty and confidentiality; the use of the

interviews must be explained and the confidentiality of the participants must be

ensured. In order to gain participant trust and therefore the most confident, honest

answers, they will need to be ensured that this research is purely as part a university

course and they will not be named or made public in any way. The topic being

researched is ethical in its self in the sense that it draws upon the very morality of

human beings and therefore should be treated as a sensitive subject. The

environmental ignorance of the so-called first world that for years only affected the

third world now is faced upon us all and it has therefore been argued that the risks of

modern life, in their consequences, have become “socially just” (Dryzek, 1997). The

realization that the earth is in fact a finite planet with limited resources to support

modern human life, that occurred around the same time that the earth was first

photographed from space (Dryzek, 1997), not only reinforces the concepts of frames

and inscriptions, but has also lead to what can be described as the ‘quest for safety’

being one of the most high profile political issues of our time.

All through the dissertation, it was ascertained that the research aim and surveys were

clear and fully understandable to the individuals participating in the survey.

Additionally, during surveying stage, no recordings were done without proper

30

approval of the interviewee. Moreover, it was ensured that all surveys are free from

any kind of political questions or personal questions related with the values and

traditions. Also, it was ensured that throughout the dissertation, the efforts and work

of others were suitably documented and acknowledged. Maylor and Blackmon (2005)

assert that it is extremely essential to correctly attribute the involvement of other

people in a specific research through referencing and in-text citations together with

concentrating on university specific plagiarism guiding regulations.

Limitations

It can be argued that “because the goal of interviews is understanding; it becomes

paramount for the researcher to establish rapport” (Fontana and Frey, in Denzin

1998). By seeing situations from the participants perspective, “rather than impose the

world of academia and preconceptions upon them” (Fontana and Frey, in Denzin

1998), respondents give much more insightful and ‘truthful’ responses to questions

and therefore the overall depth and insight of the data increases. However, the

interviewer must take care not to lose their objectivity, become ‘naive’ and thus lose

their academic role, becoming a spokesperson for the participant, rather than

producing any meaningful data.

Like every study this study also encountered a number of challenges at different

phases from devising the activity plan till the time of carrying out surveys.

Considering the nature of research topic, it was decided to choose a company research

and perform analysis based on both primary as well as secondary information than

solely on past studies along with texts, journals etc.

First of all, some issues were faced while arranging interviews. The main reason

behind this was the fact that the interview was conducted among managerial positions

so arranging surveys took time. Secondly, obtaining access to past research related to

the chosen topic was bit difficult. Owing to matter of privacy, access to all the

literature was attained only subsequent to carrying out initial formality. In addition,

issues were even experienced during research techniques finalization as a result of

short time of the research study.

Moving ahead, the continuing paragraphs would throw light on the alternative

approaches which could be considered for gathering information.

31

Alternative Considerations

Ethnographic research is one of the most in-depth research methods that offer a

researcher (or ethnographer) the opportunity to obtain a “deep understanding of the

people, the organization, and the broader context within which they work” (Myers,

1999). Whilst ethnography offers many benefits and has similarities with the case

study approach, it also differs in two particular ways; ethnographic research is done

over long periods of time and the amount of researcher involvement as the

ethnographer needs to “immerse themselves in the life of the people they study”

(Lewis 1985, in Myers 1999). The first difference is the main reason why

ethnography has not been chosen for this research as there is the timetable for the

whole research is less than a year and therefore rather constraining for an

ethnographic study; ethnographers not only need to spend a lot of time at the site

conducting the research, but the data gathered also takes a very long time to analyze

due to its very richness and even though that I'm working and participated in this case

commissioning and start-up I was busy doing my own job and I was not fully

dedicated to do my research but it was very beneficial for me to observe whatever was

suitable and helping me to identify issues that usually happens in such phase .

However, over a 3 year period during one’s doctoral studies, for example,

ethnography could be chosen as it offers great depth and understanding, and the

timescale in which to do it. The second difference is appealing in that the bulk of the

data would not be captured through surveys, but rather through observation

supplemented by interviews. The benefit of this is that an ethnographer “sees what

people are doing as well as what they say they are doing” (Myers, 1999) and therefore

gains a much deeper understanding of the area of research, including all the ‘everyday

life’ aspects of it that could be missed during surveys. Of course there are limitations

to this type of study too and it is often criticized of not having much breadth and

therefore findings being difficult to generalize or be developed into frameworks or

models. However, it can be argued that it is possible to generalize from ethnography,

in the same way that it is possible from case studies (Walsham 1995, Yin 1994).

Finally, whilst ethnography can offer a lot of depth, because of the nature of the

method it only offers the ethnographer the ability to research one organization.

Whereas the case study approach offers the ability for the researcher to conduct

research at a number of sites as there is no need to become ‘immersed’ in an

organization and so surveys can be done in a number of firms.

32

CHAPTER V (Results and Analysis) is exactly what it sounds like and, in some ways, is the 'crunch' - what you've managed to find out that's 'new' and how. This bit can take quite some time, due to the necessary analysis behind it. Results and Analysis (20%)

This is where you put the findings from your data.   For high marks in the dissertation it is not sufficient simply to describe all the data you collected in your research, no matter how professionally presented. Detailed data tables and descriptions can be placed in an appendix unless it would be impossible for the reader to understand your message without referring to them. As is the case for the rest of your dissertation, your data analysis should offer a clear narrative to the reader, all the time bearing in mind how your findings help to answer your research question. Separate if you can your account of your findings from a discussion of those findings (one section is descriptive; the other, opinion). The discussion should contain your thoughtful perspective on what you have found, and in particular how what you have found relates to your question; does it answer the question? If not, why not? Conclusions and Recommendations for Further Research (15%)

Conclusions refer backwards; recommendations look forwards. This section is your opportunity to draw together all the threads of your work over the dissertation, referring of course to your dissertation aim(s). Summarize what you have found out from your literature review and your research. You may wish to refer briefly to literature which throws particular light on your conclusions, perhaps supporting them in some way. For high marks, the conclusions will also be ‘reflective’; that is, what you have personally gained from your dissertation; what you have seen as the limitations to what you did; and how you would do the work differently if you were to undertake it again. You may also include a ‘recommendations’ category. This may be relevant for example if your work has been of value to an organization and you wish to describe here the recommendations resulting from the research. However, the assessor will be looking for consistency between these recommendations and the conclusions in the previous section.  You should also discuss how your findings and conclusions could be augmented by further research.

33

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