BI-19 Process Improvement Sea Water Injection Department

Critical To Quality ( CTQ) : Project cycle time should be 2 years or less.Project cycle time should be 2 years or less. Actual cost should be within budget ± 10%Actual cost should be within budget ± 10% Cost Of Poor Quality Cost Of Poor Quality : Reduced ROI due to long cycle timeReduced ROI due to long cycle time Budget under or overrunBudget under or overrun Supplement budget request after the factSupplement budget request after the fact Defect Definition : Any BI-19 Project which exceeded ER time (2 years) or ER budget variance by ± 10%Any BI-19 Project which exceeded ER time (2 years) or ER budget variance by ± 10% Goal: Defect Rate: 0Defect Rate: 0 No time extension or Supplement Budget request after the factNo time extension or Supplement Budget request after the fact Project Charter Project Objective : Complete 100% BI-19 Projects within projected time and budget.Complete 100% BI-19 Projects within projected time and budget. Problem Statement : During period, 37% (12 out of 32) BI-19 projects were not completed within estimated time and budget ± 10%.During period, 37% (12 out of 32) BI-19 projects were not completed within estimated time and budget ± 10%.

ER Approval (Start) Engineering Package Development months Material Procurement 10 – 12 Months Execution Period 6 – 8 Months MCC / ER Closing 3 – 4 Months (Finish) High Level Process Map Total Period = 27 – 34 Months

Current Process Map BI-19 Planning (Execution Phase) Engineering Prepare Detail Design In House Design ? Initiate PDR 30 % Design Review Is there comments ? Yes No 60 % Design Review Is there comments ? Yes 90 % Design Review No Is there comments ? Yes Engg Package Ops Issue Maintenance Order SFC / PO Procurement Award contract Planner request Material / DC Procurement Material Received Accepted Material Staged Wrong or Additional Re-order Material Review Material Spec. Yes No 6-8 months No Const. Phase

Current Process Map BI-19 Construction (Execution phase) SFC / PO Procurement Mobilize Contractor Approve SFC / SO Start Construction Commissioning Submit Spare Parts Data Packages Close All Yes Items In MCC Submit all Required As Built Packages Submit NMR and OM MCC Signature Final Closing

Completed Projects

Quality tools Flow chart Cause & effect diagram Pie diagram