How to Manage Oil and Gas Projects
1.5 Project Management Tasks
Therefore, we must determine purchasing strategies as well as the nature of the contracts and how to manage the identification and follow-up of procurement procedures. We must also identify how to maintain the qual- ity of purchases or services provided to the project.
For projects on the technical side, we must identify the possible output or final words of the basic components of the project.
1.5.2 Define the Scope of Work
The required work should be defined precisely as it is in the basic plan for the project in three main areas: determining the work required, the resources and budgets for the work, and the time required for the imple- mentation of the work. So, it is clear that the success of the planning process as a whole depends, to a large extent, on the identification of the work.
1.5.3 Define the Time Frame
One important factor in determining the objectives of the project is to develop a plan for the project through a time schedule. It should be developed in the form of a base scale of the project, and the main objective of the base scale of the project is to put the project time in clear steps by preparing the calendar, which is one of the main pillars in the management of any project.
1.5.4 Define the Available Resources
The basic tool for identifying resources required is a list of work that out- lines the required labor, materials, and other services for each of the activi- ties and our numbers if we have a schedule for these actions. Then, you can have a clear idea of the necessary resources at different periods. At the
Percentage of project completion
Time
I ll lll
IV
V I -Feasibility (appraise)
II -Select (FEED) phase III -Define (detail) phase IV -Execution phase V -Commissioning & startup
Figure 1.3 Industrial project main phases.
same time, it is required to compile information on available resources and plan work required to achieve the project.
1.5.5 Define the Cost
The cost can be determined by the following:
• The quantity of resources required to implement any action
• Cost rates for each supplier of the resources
• The time of each work activity
• Fixed costs based on the activities
Therefore, the cost of the project varies according to the size of the proj- ect and, consequently, the time of the implementation of any work depends on the time scheduled for the project.
Therefore, the budget for the project should agree with the rate of spend- ing on the project in relation to the schedule prepared by the project team.
1.5.6 Evaluate the Master Plan
Upon completion of all the previous steps, we evaluate the master plan of the project and how it will achieve agreed objectives of the project in terms of time and costs.
There is often a need to amend the plan, often in the field of resources, as they usually clear the requirement for a certain type of a large amount of resources in one specific application. Accordingly, it will be in the line of the settlement of the rescheduling of resources of some activities, which does not affect the master plan of the project. At the beginning, the sched- ule must be made through discussions between the owner and the contrac- tor. Then, the timetable will be agreed upon by all parties to achieve the success of each party according to its objectives.
1.5.7 Accept the Master Plan
Store the master plan securely as it will be the basic reference in the future.
After the approval, storing it is an important step for the planner, who is to keep the original master plan without any change to return to it if there is any confusion.
Review the execution plan and the performance through this plan, as there usually will be changes in this plan.
1.5.8 Schedule Follow Up
After all the previous steps, the execution phase will start. Then, start track- ing the progress of work by registering the amount of work done and the used resources. This will apply to the activities that took place as well as the activities under the operation.
Follow-up schedules are adjusted periodically in order to be commen- surate with the actual on site. We must, therefore, do the follow-up peri- odically and as agreed upon at the beginning of the project.
1.5.9 Cost Follow Up
You should follow-up on the cost periodically during an agreed period of time to track the project cost and compare it to the estimated cost of the project that was identified through the budget and approved by the owner.
We must follow the paid cost and the cost that is due to others with the time of the purchase orders and contracts of employment. Any deviation gives a snapshot of the position to evaluate the deviations at the same time, and then we can expect the total cost at the end of the project.
1.5.10 Comparing Between Actual Work and Master Plan Cost You must follow-up on the progress of the work. Follow-up costs in them- selves do not represent the control of the project, and the control of the project includes several steps that will lead to taking the steps geared towards the achievement of the objectives of the project.
The first step is to compare the progress of the work plan. It is clear that the most important indicator is the date for completion of the project calculated by the critical path. If there was any delay in activities on the critical path, it would inevitably lead to delays in the date of the completion of the project.
You must also monitor the activities rather than the critical path, as any significant delay with low performance rates may lead to influence on the critical path.
For the activities which finish, it would be sufficient to compare the actual costs to the estimated budget for each activity.
1.5.11 Performance Evaluation
There are two main important indicators used to assess the performance of the project. The first is the date for the completion of the project and
the second is the cost of the project and is not intended, here, as the use of these indicators on the activities of a separate or specified period of time. It is only intended to follow the general direction of the project through these indicators on relatively long periods of time. It is not a dangerous imbal- ance in one or some of the activities, but the big problem is a deviation in the general direction of these indicators.