Project Completion Report

Project Summary

Client: MTU Detroit Diesel Australia Contract No.: 1161873

PROJECT DELIVERABLES TARGET ACTUAL

Safety Nil LTI NIL

Scope Design, fabricate and assemble skid mounted

acoustic enclosure around MTU 12V1600

diesel generator package

As per target

Schedule PC 31/01/2013 PC 31/01/2013

Budget $189,200 $199,460

Margin $37,925 (20%) $15,698 (8%)

Quality (NCR) 0 0

Customer Satisfaction Score 80% or above No feedback at this point

Project Overview

The generator package formed part of the CSBP initiated NAAN3 project which aimed to increase production in their Kwinana facility.

Aerison’s scope of supply included the following main components………

• Painted skid base with integral double skinned fuel tank (3500L)• Stainless steel acoustic enclosure• Inlet and outlet ventilation system• Removable roof• Roof mounted muffler• Fitting of free issue generator set and radiator to skid base• Full mechanical assembly of acoustic enclosure package

Project Overview

Parties Involved

• Primary Stakeholder: CSBP• EPCM: MTU Detroit Diesel Australia• Supply Contractor: Aerison

Aerison’s Scope

Design, fabricate, assemble & transport to site……

• One off acoustic diesel generator package with integrated fuel tank

Project Overview

Design

Design

• Aerison• Similar to units previously supplied• Double skinned tank changed in regards to previous designs to incorporate double skin at sides also• Stainless steel panels• Removable roof• Semrad fuel control system

Fabrication – In House

• Base frame and tank• Structural frame work• Inlet ventilation system• Outlet ventilation system

Base Frame

Fabrication – In House

Structural Framework Inlet / Outlet Ventilation System

Fabrication – Sub Contractor

• Stainless steel panels Cohesive• Stainless steel doors Cohesive• Flashing Cohesive• Muffler Universal• Weather louvre Bradflow• Surface treatment RPC

Fabrication – Sub Contractor

Complete Panels

Insulation Fit Out

Door Trial Assembly

Fabrication – Sub Contractor

Weather Louvre

Muffler Elbow & Weather Cowl

Project Pictures-Complete Assembly

Outlet End Inlet End

Fuel Connections Exhaust Duct & Blankets

Project Pictures-Complete Assembly

Fuel Interface Genset Installation

Genset Removable Roof

Project Pictures-Complete Assembly

CSBP Generator Package

Project Summary

Safety and Environment

Target – Nil Incident Actual – Nil Incident

Comments

• Safety and environment record for project excellent• No reported incidents from sub contractors

Project Summary

Scope of Works

Target - Original Contract Scope of Works Total Number of SCN’s 4 Total Approved 3

Comments

• Project completed on time• $10,260 in variations

Project Summary

Schedule

Project Summary

Schedule

Original Contract Delivery 31/01/2013 Actual Practical Completion – March 2013(Contractual obligations fulfilled – Extension due to external client issues)

Comments• Schedule extremely tight from the beginning• A lot of initiative and assisting of client required to keep the project on track

Project Summary

Budget and Margin

Project Summary

Budget and Margin

Original Contract Sum $189,200 Expected Final $199,460Original Contract Margin $37,925 (20%) Expected Final $15,698 (8%)

CommentsOver budget items were:-• Drafting (-$11,408)• Management (-$20,017)• Fabrication Labour (-$7,315)• Assembly Labour

Under budget items were:-• Materials ($1,700)• Panels and Doors ($8,156)• Variations

Project Summary

Quality

Target – Nil Quality Issues or NCR’s Actual – Nil

Comments

• Internal fabrication checks• Sub contractor quality review documentation• Sub contractor external expections

Issues

Comments

• Drafting- Significantly underestimated (~$9,000 estimated / ~$20,000 used)

• Workshop hours- Underestimated in regards to ventilation inlet/outlet system- 370 hours used in total (290 allocated to work shop – Additional 80 hours

allocated due to shortfall with inlet/outlet ventilation system)

• Assembly hours- 140 hours estimated - 80 additional hours used

~ 45 hours covered by variation ~ 10 hours caused by direct work shop error

• Management and Engineering - Significantly underestimated (~$18,000 estimated / ~$38,000 used)

Budget

Issues

• Subcontractors - Subcontractors internal quality inspections poor - Subcontractors external quality inspections not adequate

• Drafting - Missing detail led to additional work and time expended

• Engineering - Lack of consideration for a few assembly items (grid mesh / silencer connection to radiator) - Bolt take offs not efficient or correct

• Management - Greater control needed to be taken of design process at an earlier stage - Due to the lack of document control and an organised process on the clients side a lot of gentle persuasion and recording required to maintain forward momentum of project while maintaining contractual obligations and cover.

General

Project Summary

Human ResourcesComments

• Expeditor – Good- Expediting very good where required

• QA – Internal Good / External Poor- All internal issues identified and rectified in at work shop stage- Muffler quality and panel quality documentation poor

• Engineering – Good (Needs to flow more from the start)

• Document Control – Restricted due to no client document control • Safety – Excellent

• Management – Good- Management was required to be very tight due to lack of budget in critical

areas

Project Summary

Communications

Comments

• Internal• Sub contractor• Client

Project Summary

Client Satisfaction

• Client and CSBP happy to date with final product – Commissioning and noise test yet to take place

Project Summary

Lesson Learnt

• Transport• Quality• Contract management• At source inspections

Project Summary

Project Completion

Unfinished Business

Comments

• Thank You Letter

• Bank Guarantees

• Future Business or Related Projects

• Aerison Procedures