Project Management Lecture 2/9/2015

Fundamental “Rules” of Project Engineering 1.While there is never enough time to do it right, there is always enough time to do it again. 2.No surprises. 3.At some point you have to build the plant.

Chemical Engineering Design 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 resultsThey 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 problemFrom 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 outcomeUsing this understanding they can develop a plan of action and set of detailed specifications, which if followed will lead to a predicted financial outcome All the other ChE classes you took The design course addresses these © 2012 G.P. Towler / UOP. For educational use in conjunction with Towler & Sinnott Chemical Engineering Design only. Do not copy

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

Chemical Engineering Design Design Work Process Determine Customer Needs Set Design Specifications R&D if Needed Evaluate Economics & Select Design Predict Fitness For Service Build Performance Models Generate Design Concepts Procurement & Construction Begin Operation Customer Approval Detailed Design & Equipment Selection 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

Chemical Engineering Design 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

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

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

Chemical Engineering Design Implications Most major projects involve several companies working togetherMost major projects involve several companies working together “OpCo” might itself be a joint venture between several companies“OpCo” might itself be a joint venture between several companies The companies might all be based in different regions of the worldThe companies might all be based in different regions of the world Teamwork, technology transfer and effective communications have high impact and valueTeamwork, technology transfer and effective communications have high impact and value Good project management is more important than everGood 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 P1 P2P3 P4

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.

Chemical Engineering Design The Project Plan Is developed & implemented by the project managerIs developed & implemented by the project manager Sets deadlines for completion of activities & intermediate deliverablesSets deadlines for completion of activities & intermediate deliverables Allows scheduling of subordinate or dependent tasksAllows scheduling of subordinate or dependent tasks Allows estimation of the required manpower resources at each stage of the projectAllows estimation of the required manpower resources at each stage of the project Determines the procurement schedule & gives an estimate of when cash outlays are expectedDetermines 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

Chemical Engineering Design 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

Chemical Engineering Design 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

Chemical Engineering Design What’s In a Project Plan? Durations, start and end dates 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

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

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

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

Chemical Engineering Design Tools for Project Planning Specialized software for larger projectsSpecialized 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)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? 1.Develop Project Scope, and Design Basis (Rough Draft-Outline Based on what you have been told) 2.Develop Project Man Hour Estimate 3.Develop Project Schedule 4.Resource Load the Schedule based on Man Hour Estimate 5.Iterate with Resource and Schedule Constraints to meet project requirements. 6.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 P1 P2P3 P4 PFD’s 0% 100% P&ID’s 0% 30 to 50% 100%

Project Cost Estimate Quality P1P2P3P4 Class 5 Estimate Class 4 Estimate Text Book AACE Cost Estimate Classes: Class 3 Estimate Class 2 Estimate

Project Life Cycle

Inherently Safe Design (ISD) P1 P2 P3 P4

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) 1.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”. 2.No surprises. You need to update your Estimate & Plan 3.At some point you have to build the plant. You need to produce your Deliverables.