Terry Ring Chemical Engineering University of Utah Project Management Terry Ring Chemical Engineering University of Utah

Fundamental “Rules” of Project Engineering While there is never enough time to do it right. When is there ever enough time to do it again? No surprises. At some point you have to build the plant.

Why Are ChE’s Paid So Well To Work in So Many Different Industries? They can start from a vaguely defined problem statement such as a customer need or a set of experimental results From the problem statement they develop an understanding of the important underlying physical science relevant to the problem Using this understanding they can develop a plan of action and set of detailed specifications, which if followed will lead to a predicted financial outcome The design course addresses these All the other ChE classes you took © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

The Design Process Problem statement Plan Financial outcome XYZ Co. Plan Financial outcome Implementation © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

Design Work Process Common to all design problems in all industries Determine Customer Needs Set Design Specifications Build Performance Models Generate Design Concepts R&D if Needed Predict Fitness For Service Evaluate Economics & Select Design Customer Approval Detailed Design & Equipment Selection Procurement & Construction Begin Operation Common to all design problems in all industries © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

How do companies implement this design process? © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

The Design Team Project Sponsor Business Input Project Manager Process Engineer(s) Technical Specialists Control Engineer Cost Engineer Consultants R&D Specialists Mechanical Engineer(s) Civil Engineers Contractors © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

Nowadays (For most companies, most sectors) Project Sponsor Business Input Operating Company Project Manager Process Engineer(s) Technical Specialists Control Engineer Cost Engineer Consultants R&D Specialists Mechanical Engineer(s) Civil Engineers Contractors Technology Vendor E&C Company © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

Implications Most major projects involve several companies working together “OpCo” might itself be a joint venture between several companies The companies might all be based in different regions of the world Teamwork, technology transfer and effective communications have high impact and value Good project management is more important than ever © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

“Stage Gated” Project Life Cycle

Project Life Cycle

Project Estimates, Plans, Schedules Each Engineering Discipline normally submits an estimate of hours needed to complete the project, along with a resource loaded schedule showing “milestone” dates for completion of deliverables, or specific % complete targets relevant to each project phase. These are built around the deliverables and known activities for each engineering discipline.

Typical Process Engineering Deliverables for Stage Gated Project

For Other Types of Projects – See Text Chapt. 1 “Techno-Economic Analysis” (aka Feasibility Study) ….see Table 1.1 for Deliverables-Engineering Report Sections. “Technical Proposal” ….see Table 1.2 for typical parts of a proposal that must be generated. Note: A Basic Engineering Design Report (BEDR) – Table 1.3 puts together all the typical Stage Gated Project Deliverables…at different Phases of each Project.

The Project Plan Is developed & implemented by the project manager Sets deadlines for completion of activities & intermediate deliverables Allows scheduling of subordinate or dependent tasks Allows estimation of the required manpower resources at each stage of the project Determines the procurement schedule & gives an estimate of when cash outlays are expected © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

Example: 11-Week Plan for a Process Design Project © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

What’s In a Project Plan? List of tasks © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

What’s In a Project Plan? Durations, start and end dates © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

What’s In a Project Plan? Predecessor tasks © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

What’s In a Project Plan? Resource allocations © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

What’s In a Project Plan? Gantt chart © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

Tools for Project Planning Specialized software for larger projects MS Project SureTrak Primavera Project Planner Enterprise PM Cobra Small project plans & Gantt charts can be drawn in spreadsheets or using cheap software (<$100) AceProject (free on-line) TurboProject Project Vision Quick Gantt © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

How do you develop a Project Plan? Develop Project Scope, and Design Basis (Rough Draft-Outline Based on what you have been told) Develop Project Man Hour Estimate Develop Project Schedule Resource Load the Schedule based on Man Hour Estimate Iterate with Resource and Schedule Constraints to meet project requirements. Publish Documents (Scope, Estimate, Schedule) for Review & Approval

How do you develop a Project Plan? Start by “Scoping” your project: “In Scope” means you have deliverables for your project. “Out of Scope” means no deliverables, or any other considerations, calculations, etc. Write up a Scope of Study document, listing project intent and deliverables. Develop and initial Design (or Study) Basis Document, to identify your basis (and things you need to pin down in your project later as TBD).

Project Plan Development, cont. Next - Estimate the man-hours needed for each deliverable. Note that each deliverable may have several separate activities/tasks you need to estimate. Add in required hours for reviews, meetings, travel, etc. Include your own safety/risk review.

Project Plan Development, cont. Develop the Schedule. Organize your separate activities/tasks in order by which you can complete them (Identify predecessors). Start from Deadline and work backwards…or.. Start with Kick-off date and work forwards. Identify Milestone dates. These can include: Completion dates (or % Complete dates). When Deliverables are to be issued for review & comment. Review Meetings. Key Decision Points.

Project Plan Development, cont. Document resources available to accomplish required man-hours Iterate? Demonstrate Plan via GANT chart, Flowchart, etc.

Cost Estimates for “Stage Gated” Project Life Cycle 0% 100% PFD’s P&ID’s 0% 30 to 50% 100%

Project Cost Estimate Quality Text Book AACE Cost Estimate Classes: Class 5 Estimate Class 4 Estimate Class 3 Estimate Class 2 Estimate

Project Life Cycle

Inherently Safe Design (ISD) P4 P3 P2 P1

Impact of Cost & Schedule + Need for ISD on Process Engineering You must PLAN your work. You must Estimate your work. You must Schedule your work. You must Track your progress on your work. You must report your progress and update your Estimate & Schedule as Needed.

Fundamental “Rules” of Project Engineering (For Process Engineers) While there is never enough time to do it right, there is always enough time to do it again. You have to “Scope, Estimate, and Plan (Schedule, and Resource Load) your project”. No surprises. You need to update your Estimate & Plan At some point you have to build the plant. You need to produce your Deliverables.