progetti
Front End Engineering Design (FEED) Challenges
in EPC Projects: Design, LLI Strategy & Fast Track
By Armando Bianco, Engineering Manager, Eniprogetti
Global Conference on EPC Contract & Project Management
9th-10th November 2017 Lisbon, Portugal
Index
Eni
Design Basis, Key Deliverables & Battery Limits: how to approach a Front End
Engineering Design
Balance between engineering freezing and early procurement: Long Lead Items
strategy
Fast Track: Basic, FEED & Detail Design phases in overlap aiming at Project goals
Conclusions
2 eniprogetti
Eni
3 eniprogetti
Design Basis, Key Deliverables & Battery Limits: how to approach a Front End
Engineering Design
4 eniprogetti
Oil and Gas Project Development Phases
Pre-feasibily Feasibility Basic - FEED Detail Design & Construction
1-3 MM (typical ref.) 2-4 MM (typical ref.) 3-9 MM (typical ref.) Procurement Commissioning
9-18 MM (typical ref.) 12+ MM (typical ref.)
G1 G2 G3
Execution: detailed development and physical
realizatio of the scope of the project’s ork
Definition: finalization of the development concept
Selection: choice of optimal development configuration
Appraisal / Evaluation: assess e t of the opportu it ’s eco o ic alue
Project expenditure
Capital Risk
Difficulty to implement
changes
Personnel involved
Stakeholders’ e pectatio s
Time
5 eniprogetti
Project Development Phases Key Activities -> Key Deliverables (es. for process
and piping and layout engineering)
Pre-feasibily Feasibility Basic - FEED Detail Design & Construction
1-3 MM (typical ref.) 2-4 MM (typical ref.) 3-9 MM (typical ref.) Procurement 9-18 MM Commissioning
(typical ref.) 12+ MM (typical ref.)
Support to Construction
and commissioning Red-marked and as-built
Feasibility
3D model P&ID (with vendor information)
Detail Engineering Design Equipment DS (for all items)
Procurement and Construction Details MTO (2nd and 3rd)
Isometrics
Construction drawings
Stress Reports
Finalization of all processes, utilities and Finalization of Heat & Material balance, P&ID & Equipment and
transportation systems. packages DS
Design of all engineering systems Plot Plan, Equipment layouts, Underground layouts
Constructability reviews finalization Finalization of Technical Specifications (Stress analysis Criteria)
Single lines for steel structures
Preli i ar MTO’s Pipi g ( st MTO)
Preparation of process specifications, design criteria, for all Process Flow Diagrams
processes , utilities and transportation systems. Preliminary Battery Limits Table
engineering, safety and constructability. Preliminary P&I Ds
Equipment Data Sheets Design Criteria
Preliminary Plot Plan
Identification and analysis of the main process and Technology selection report
utilities for each generated concept alternative Preliminary Heat & Material balance
6 Block Flow Diagram
Preliminary Site Plan
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How Design Basis, Key Delivery and B.L. can affect a Project
What if…
… Desig Bases are not finalized
Example: the pressure of the Sea Water Make-up (rely upon information) was significantly different from the reality.
Technical resolution: lower the pumps with an additional basin (groundwater level very high).
Impact: additional costs and delay in schedule
… Key Deliverables are not ready as needed
Example: the supply of a critical reactor was assigned to a vendor in the Far East and a shipping to North Africa was
fixed in advance. Due to the delay in the 3D model, the nozzle orientation was not ready as per original plan agreed
with the vendor resulting in late finalization of the vendor engineering and eventually of the supply.
Recovery plan: an acceleration plan was agreed with the vendor to meet shipping window.
Impact: additional costs
… Battery Li its are not aligned (process-wise)
Example: two different mechanical contractors were assigned to install the cooling water circuits in the relevant area
and a battery limits was established. During the commissioning phase after the battery limits were connected it was
noticed that one contractor inverted the connection from a process point of view.
Technical resolution: the connections were modified during commissioning and with acceleration in procurement for
the unforeseen additional material during commissioning
Impact: delay during commissioning phase
7
Note: Lesson Learnt not related with ENI projects
eniprogetti
Why Basic-FEED is the most important part of a Project?
Pre-feas. Feasibility Basic - FEED Detail Design & Construction Construction
1-3 MM 3-6 MM 3-9 MM (typical ref.) Procurement 9-18 MM 12 – 32 MM (typical Commissioning
(typical ref.) (typical ref.) ref.) 12+ MM (typical ref.)
value
$ BOQ &
Construction
strategy
Material
Selection & Peak
Take-off Construction
Cost
Project Cost
Curvet
Availability of
Peak Information
Material
Cost time
During Basic – FEED project costs can be properly evaluated by finalization of material
8 selectio a d MTOs, owi g to that this phase is the ost i porta t for the go/ o go eniprogetti
final assessment
Design approach – Key points
The Basic - FEED engineering shall be tailor fit to allow the correct definition of
the i vest e t cost a d to support the go / o go decisio gate 3 (key
deliverables fit for purpose to the activities and not vice-versa);
In Basic – FEED phase, the key deliverables allow to fix the material selection
and estimate material take-offs which are the input for the procurement and
construction strategy based on the project drivers;
9 eniprogetti
Balance between engineering freezing and early procurement: Long Lead
Items strategy
10 eniprogetti
Long Lead Items definitions
Those components of a system or piece of equipment for
which the times to design and fabricate are the longest and
for which an early commitment of funds may be desirable or
necessary in order to meet the earliest possible date of
system completion.
11 eniprogetti
Critical Path
The critical path is the sequence of activities that represents the longest path through a project, which
determines the shortest possible project duration [PMBOK 6.6.2.2 Critical Path Method]
Appling Critical Path method for all the systems of a project, even material with a rather short
delivery can result to be critical, owing to that we can split LLI in two categories:
Typical LLI such as:
• High pressure equipment
• High temperature equipment
• Special Material equipment
Not Typical LLI such as:
• Tie-ins: integration with existing Facilities
12
• Bulk material for early commissioning system eniprogetti
Tie-ins: integration with existing Facilities
REFERENCE GREEN-FIELD PROJECT SCHEDULE
Pre-feas. Feasibility FEED Detail Design & Construction Commissioning
1-3 MM 3-6 MM 3-9 MM (typical ref.) Procurement 9-18 MM 12 – 32 MM (typical 3- 12 MM (typical ref.)
(typ.Ref.) (typ.Ref.) PROCUREMENT (typical
FOR
PROCUREMENT FOR LLI ref.)
TRADITIONAL LLI ref.)
EARLY ENGINEERING EARLY CONSTRUCTION
EARLY PROCUREMENT
TIE-INS EARLY COMMISSIONING
PRODUCTION PLAN of EXISTING FACILITIES
Shut- Shut-
UNIT 10 down Production down
UNIT 20 Plant to be disinvested Dismantling
Dismantelling
Dismantelling
Shut-
UNIT 30 down Production
OVERALL SCHEDULE INTEGRATED WITH PRODUCTION PLAN
FEED TIE-INS
Detail Design &
TIE-INS INSTAL. Commissioning
INSTAL. Procurement Dismantling
Feasibility Study TIE-INS Shut- Construction
down
Tie-ins shall be planed in an early stage of the project, with a dedicated engineering,
13 construction and commissioning team. The project schedule incorporates the production eniprogetti
plan in terms of turn-around or critical milestones.
Bulk Material for Early Commissioning System
Engineering design for bulk material is
aimed to produce MTOs with increased
levels of definition
Procurement generally follows the
MTO by engineering based on master
agreements or project agreements
Construction strategy is divided into:
1st phase by area
2nd phase by system
During the engineering phase it is important to verify that the delivery of bulk material
14 fits the Mechanical Completion dates (additional specific MTOs can be envisaged). eniprogetti
Long Lead Items strategy – Key points
The critical path developed for all the project systems allows us to recognize
critical delivery items which do not have the longest delivery such as tie-ins or
bulk material for early commissioning system, which shall be focused since the
start of the project with a dedicated integrated team (engineering,
construction and commissioning);
For a revamping project, the integration of the production plan in the project
baseline allows to execute tie-ins during turn-around, minimizing the number
of shut-downs and avoiding unnecessary loss of production;
15 eniprogetti
Fast Track: Basic, FEED & Detail Design phases in overlap aiming at Project
goals
If you're not confused, you're
not paying attention.
Tom Peters
16 eniprogetti
Project objectives and Fast-Track Projects
Pre-feas. Feasibility Basic - FEED Detail Design & Construction Commissioning
1-3 MM 3-6 MM 3-9 MM (typical ref.) Procurement 9-18 MM 12 – 32 MM (typical 3- 12 MM (typical ref.)
(typ.Ref.) (typ.Ref.) (typical ref.) ref.)
• Opt.1) Compress the activity lengths
Pre-F. Feasibil. FEED Detail Design &
Procurement
• Opt.2) Fast-Track by parallelization
of phases
Feasibility Study
FEED
Detail Design &
Procurement
17 eniprogetti
Possible outcomes when implementing a Fast-Track in a project
Not linear
Relying approach in
upon preliminary Design based
decision making
information on assumptions
Overdesign Increased
material interface
management
More More difficult
More
engagement of
Higher Engineering Reworks personnel
Cost Man-hours
Higher
Increased Risk
possibility of Which it the greatest
inconsistencies
objective?
18 eniprogetti
How to mitigate risks in fast-track projects
Re-cycling
Design
Feasibility Study inputs/outputs
FEED
Detail Design & D
Procurement
Final alignment
ENGINEERING MATERIAL
Final alignment mitigates risk When procurement cycle
of further phases for critical is long, procurement can
aspects be start with preliminary
data, updating more
consolidated information
during the vendor
ENGINEERING MATERIAL alignment before PO
TEAM
Preliminary information Material check/re-rated
If the approach is aligned
evaluated from Basic (used is re-consolidated both in
since the beginning with a
for detail design) are Basic and Detail Design
common goal, all the team
always re-checked when to avoid reworks during
is aimed to support
more information are construction and
unavoidable project changes
available commissioning
and reworks activities
19 eniprogetti
Case Study
Feasibility Study
FEED
Detail Design & D
Procurement
Project Organization
Engineering Approach: Re-cycling Design
1. Process and Layout for critical circuit
2. 3D Model Review 30% and 60%
3. Material Selection
4. Vendor design
5. Design Philosophy – Operating manual
20 eniprogetti
Case Study Organization Chart
OWNER
FEAS.
PRE-
FEASIBILI
LICENSOR
TY FEASIBIL. CNT
BASIC -
BASIC –FEED
FAST-TRACK
FEED
CONTRACTOR
DETAIL ENG.
CONTRACTOR
DETAILED
ENG.
VENDOR VENDOR VENDOR
CONSTRUCTION CONSTRUCTION
CONSTRUCTION
CONTRACTOR CONTRACTOR
SUB. SUB. SUB. SUB.
CONTRACTOR CONTRACTOR CONTRACTOR CONTRACTOR
Interface Management eniprogetti
#1: Process and Layout for critical circuit
2) PROCESS SCENARIOS
(DESIGN CASES AND
TRANSIENTS)
PUMP
FV s Valves Flow PSVs Valves Flow
DISCHARGE
Case
File by FVA FVB FVC PSVA PSVB PSVC
A B C IN OUT IN OUT IN OUT IN OUT IN OUT IN OUT
EST9 4 SA 1 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351
EST9
EST9
4
4
SA
SA
2
3
380 380 380 380 380 380 380 380 380 380 380 380 380 380
5 5 5 5 5 5 5 5 5 5 5 5 5 5
380
5
3) STRESS
EST9 4 SA 4 351 351 250 351 351 351 351 250 250 351 351 351 351 250 250
EST9
EST9
4
4
SA
SA
5
6
250 351 351 250 250 351 351 351 351 250 250 351 351 351
351 250 351 351 351 250 250 351 351 351 351 250 250 351
351
351
CRITERIA
EST9 4 SA 7 351 351 351 351 351 351 351 351 351 250 250 250 250 250 250
CEER 4 CEER 1
x x x x x x x x x
351 351 250 351 351 351 351 250 250 250 250 250 250 250
x x x x x x
250
WITH
4
CEER
CEER 4
4
CEER
CEER
2
3
351 250 351 351 351 250 250 351 351 250 250 250 250 250
250 351 351 250 250 351 351 351 351 250 250 250 250 250
250
250 PRELIMINARY
1) PRELIMINARY CEER
CEER
CEER
4
4
CEER
CEER
CEER
4
5
6
351 351 250 351 351 351 351 250 250 351 351 351 351 250
351 250 351 351 351 250 250 351 351 351 351 250 250 351
250 351 351 250 250 351 351 351 351 250 250 351 351 351
250
351
351 CRITICAL
CEER 4 CEER 7 351 351 351 351 351 351 351 351 351 351 351 351 351 351 351
SIZE CALCULATION & CEER
CEER
4
4
CEER
CEER
8
9
380 380 380 380 380 380 380 380 380 380 380 380 380 380
351 351 351 250 250 250 250 250 250 250 250 250 250 250
380
250 VERIFICATION
In Process: Pump Nozzle Alignment for installation case, Pumps ABC at ambient
PLOT PLAN CEER
CEER
4
4
CEER
CEER
temperature , piping not anchored to the pumps.
In Process: Pump Nozzle Alignment for maintenaince case, Pump A, B or C as spare.
AND TYPICAL
CEER 4 CEER In Process: Tracing Failure Scenario analysis DETAILS
4) 3D
LAYOUT
6) UPDATING PROCESS LINE
CALCULATION & PLOT PLAN
5) STRESS
CALCULATION
BASIC-FEED DETAIL ENGINEERING
CONTRACTOR CONTRACTOR
22 eniprogetti
#2: 3D Model Review 30% AND 60%
DETAIL ENGINEERING BASIC-FEED
CONTRACTOR CONTRACTOR
BASIC-FEED DETAIL ENGINEERING
CONTRACTOR CONTRACTOR
23 eniprogetti
#3: Material Selection (Piping)
Fluid list Piping Classes
Process Fluid List
Vendor
Material requisition
Follow-up &
Purchase Order
Material Requirements
BASIC-FEED DETAIL ENGINEERING
CONTRACTOR CONTRACTOR
24 eniprogetti
#4: Vendor design
Process DataSheet
Material Requisition
Mechanical and
Material Check
Vendor
Follow-up
BASIC-FEED DETAIL ENGINEERING
CONTRACTOR CONTRACTOR
25 eniprogetti
#5: Design Philosophy – Operating manual
Updated Control
Philosophy
Updating Process Operating
Design
Design Operating Manual
Scenarios Scenarios
Process Philosophy
BASIC-FEED DETAIL ENGINEERING
CONTRACTOR CONTRACTOR
26 eniprogetti
Fast Track – Key points
The Fast Track with parallelization of phases which traditionally are developed
sequentially is a possible strategy to meet Project Objectives when the
schedule is challenging;
To mitigate the risk associated to fast track (more interfaces, reworks,
designing by conservative assumptions rather that consolidated data etc.)
project team needs to be integrated with an interface management plan and
dedicated engineering methods such as re-cycling and final alignment need to
be set-up in the engineering execution plan.
27 eniprogetti
Conclusions - Key Factors for Basic-FEED Projects
Tailor fit Design by Project Objectives
Advanced monitor of costs with correct Basic-FEED data
System-wise approach since the beginning of the project
For revamping, integration of project schedule with production plan
Interface management, re-cycling and final alignment for fast-track project
28 eniprogetti
