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

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. “Stage Gated” Project Life Cycle

11. Project Life Cycle

12. 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.

13. Typical Process Engineering Deliverables for Stage Gated Project

15. 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.

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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).

26. 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.

27. 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.

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

29. Cost Estimates for “Stage Gated” Project Life Cycle0%
100%
PFD’s
P&ID’s 0%
30 to 50%
100%

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

31. Project Life Cycle

32. Inherently Safe Design (ISD)P4 P3 P2 P1

33. 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.

34. 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.