An Introduction to Project Execution Rev 4 Aug 7 2

AnIntroductiontoProjectExecutionD.Chan,Calgary,[e-mail]sis.•ExecutionObjectives•ProjectDevelopmentPlan•Projectlifecycle.•ProjectGovernance.•ProjectHSE•ProjectQuality•ProjectRisks•ProjectExecution•Modularization•ProjectExecutioninAlberta.Content(Cont’d)•ProjectManagement•Stakeholdermanagement•ProjectOrganization•EngineeringPlan•ProjectControlManagement•ProcurementandContracts•Modularization•ConstructionandCompletionProjectexecutionobjectivesProjectExecutionObjectives•DefineWhattodo•HaveaplanHowtodo•Executeitwithinbudget,schedule,safelywithgoodqualityandnoenvironmentalviolation.ProjectDevelopmentProjectDevelopmentPlanConsideration•Resourcedevelopmentprogram.Hencedeterminethenumberofphasesandthesizeofanddurationofeachphase.•Factorstoconsider:–Infrastructureandresourcelimitatione.g.manpower–Marketwindow–Availabilityofcapital–Regulatoryapproval–Technologydevelopment–Owner’sexperience–RisksProjectLifeCycle:•Gate/phaseapproachPurposeofthegate/phaseapproachistorefinetheinformationavailableinordertomakebusinessdecision.Thebusinesscommitmentincreasesfortheprojecttoprogressandtherefore,moreinformationisrequired.Typicallytheprojectlifecyclecanbedefinedinto:ConceptualPhases,FeasibilityPhase,BasicEngineeringPhase,ExecutionPhaseandOperationPhase.Theprojectisincreasinglybetterdefinedandtherefore,riskisreducedasitpassestheprojectphases.Mostoperatingcompanies,PMI,COAA,etc.provideaprojectlifecycledefinitioninordertoallowgooddecisionmaking.ExecutionFrameworkProjectPhases•ConceptualPhase(Identify):Ahighlevelstudyforabusinessconsiderationtodetermineifthebusinesscanbeviable.•FeasibilityPhase(Select):Abetterdefinitionoftheprojectandevaluationofalternatives.•BasicEngineering(Frontendengineering)Phase(Define):Establishprojectbusinessobjectives.Definethebasicengineeringrequirementsandaprojectexecutionplanforprojectsanction.TheconceptofFELindexforprojectapprovalistoensurethattheprojectiswelldefined.•ExecutionPhase(Execute):Providesdetailengineeringdocuments,equipmentandmaterial,adetailexecutioncontrolplan,constructionandcommissioning.•Operationandevaluation(Operate)Phase:Monitorthefirstyearsofplantoperationandcompareswithinitialbusinessobjectivestoprovidefeedbackinformation.ProjectLifecycleProjectLifecycleProvideascopeofworkfromchecklistforeachphase.ProjectLifecycle•CompletionSign-off/SummaryChecklist–Thesummarychecklistisacommunicationstooltohelptrackthecompletionofitemsonthescope,execution,anddecision-makingchecklists.Thereisspaceonthisformfornotingexceptionsorforgivingreasonsfornotcompletinganyitem.Ifamanagementreviewisconsideredappropriate,thereisalsoasignaturespaceforindicatingapproval•Checklists(Scope,Execution,DecisionMaking–Whilethesechecklistsaretypicalforlarge($25million)down-streamanddiversifiedprojects,theyareintendedasaguidetoassurethattheimportanttasksineachphasearecompletedbeforemovingtothenextphase.Reviewtheitemsonthesechecklistscarefullyandmodifythemtomeettheneedsofanyindividualproject.ProjectCharterAhighlevelstatementfortheteamtofocusandguidetheteam’sbehaviour.•DevelopedinFeasibilityPhase•Formsbasisforexecutione.g.ProjectExecutionPlan.•Defineprojectobjectives,scopeandrisks•Definedeliverables,scheduleandestimatedcosts•Defineprojectorganization,governancestructureProjectGovernanceDecisionmakingprocessandparticipationbyseniormanagement,SeniorVP,ProjectManagementCommittee.•Steering.Givedirectiontoprojectteam.•Supervising.Closeenoughtoaddvalue.•Supporting.Expertknowledge,resourcesfundingetc.•Assuring.Makingsureactivitiesarecarriedouttoinstillconfidenceintheprojectexecution.Health,Safety&Environment•DevelopbystagesProjectHSE•Level1,Companyreferencemanual.•Level2,Projectspecificmanual•Level3,Contractors’executionplanProjectQualityPlanProjectRisks•Geotechnicalrisks,safetyandenvironmental,stakeholders,permitting,location,weather,labour,vendor,contractors,transportation,market,projectchangecontroletc.ProjectRisks•Geotechnicalrisks:Lackorimprecisegeotechnicalinformation,muskeg,shalelayer,sandlance,rock,unusableclay,waterbodies,artificesetc.•Safetyandenvironmental:Identificationofpotentialsafetyissuessuchasavailabilityofsafetypersonnel,medicalpersonnel,hospital,transportationetc.Identificationoflocationspecificenvironmentalrequirementssuchasconstructionandoperationwastemanagement,specialvegetationandanimalcare(e.g.rarevegetation,caribou,birdmigrationetc.)•Stakeholderrisks:internalandexternalpartners,locals,natives,specialinterestgroupsetc•Permitting:Identificationofallthepermitsrequired,Timelinessofpermitissue,Identificationofpermitrequirements,Townhallhearing,additionalrequirementimposedonpermits.•Location:Infrastructure(water,power,roads,airport,gravels,sand,concrete,labourcampsetc)availability,accessroad,roadbans,cargoweightanddimensionlimits,BusinesscommitmenttoLocalsandNatives.•Weather:Unexpectedrain,snowfallsandlowambienttemperaturecausingdifficultyinroadaccess,groundcompaction,earthwork,concreteetc.Alltheseaffectconstructionefficiency.Proje