Project Management

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Overview

A project creates a product, services or an outcome which is quantifiable and satisfies the needs of the society. Aproject for process plant, which require supply chain services, begins with Techno Economic Feasibility (TEFR) report followed by either a Front-End Engineering and Design (FEED) and/or a Detailed Project Report (DPR). The studies prepared at the initial stages permit the Client to assess economics and/or social benefits of the project. This groundwork will lead to implementation stage with following major milestones:

Financing plan.
Project management plan.
Early works plan.
Design and engineering.
Procurement of material and services
Commissioning and start-up
Production of goods

To achieve optimum results, the Client must employ current project management techniques and specialists to manage project scope, time schedule and finances. Upon completion, the Client will require specialist personnel who can efficiently manage production and sales.

EPC/EPCm Strategy

The contracting strategy of the Client depends upon the availability of the capital and risk appetite. When risk appetite is low and the product is based on a new technology, the Client may prefer to opt for EPC contract in which most risks are transferred to the contractor. But if the capital availability is limited and risk appetite is high, an EP contract can be opted. Following graphic explains the link between a turnkey (lump sum) and reimbursable contracting.

Early Works Planning

For a successful project, the Client must plan for early works which may support the on-site activities after substantial progress of engineering and on-site arrival of materials. Early works can be identified based on the project requirement and site condition. Execution of early works supports the site work and may help on time completion of the project. Some of the works which may be required are:

Geo-technical studies.
Relocation or removal of existing facilities.
Earth movement and soil improvement.
Roads and drains.
Utilities such as power, water, and communication.
Construction offices and warehouse.

Financial Assistance Application

Unless the Client is planning to employ internal resources, it will be necessary to seek financial assistance from banks. Banks readily agree to finance projects based on proven technologies. As opposed to this, banks may insist upon financing a project on new technologies based on “non-recourse financing” which may have with some of the following conditions:

Non-recourse financing plan.
No variation to contract terms without approval the bank.
Higher than normal liquidated damages for delay.
Minimum performance standard (MPS).
Sustained load test over a period.
Guaranteed performance standard (GPS) against liquidated damages.
Removal of facilities if MPS not achieved with clearing of site and refund of payments.
Parent company guarantee from contractor for fulfilment of obligation.

To support the application for finances, the Client will be advised to submit following type of documents:

Possession of site.
Credential of Licensor and contractor and contracts made with them.
Cost estimates and financing plan.
Environment protection plan and Consents.
Marketing plan.
Man-power planning.
Project execution plan.

Manpower Planning

Execution of project requires experienced manpower in technical, financial, marketing disciplines. The project also requires personnel to manage environment during construction and operation. Where new technology is to be used, it will be necessary to train some of the personnel in managing production and sales. For this purpose, the Client must develop an organisation chart. After development of organisation chart, key steps in planning of manpower are:

Responsibility
Qualification and experience.
Training needs.
Timetable for recruitment.

A successful project requires a good and timely manpower placement.

Process Optimization

Business Processes are one of the most important factor for sustainability. This approach closely resembles other Total Quality Management or Continual Improvement process methodologies utilizing Industry Best Practices and is supported, through technology.