Oil and gas projects have special characteristics that call for a different technique in project management. This book focuses on the use of practical tools and methods that are widely and successfully used in project management for oil and gas projects.
The Principal of Project Management
How to Manage Oil and Gas Projects
Project Characteristics
The project manager must coordinate among the project members to achieve the project goal. It gives impetus to the project manager to learn to work in changing circumstances, as the nature of the project must change.
Project Life Cycle
- Initiation of the Project
- Feasibility Study
- FEED (Preliminary) Engineering
- Detail Engineering
- Decision Support Package
- Design Management
- Execution Phase
- Commissioning and Startup
In addition, the project manager will prepare this document under the supervision of the project sponsor. The importance of this phase varies depending on the nature and size of the project itself.
Is this Project Successful?
- Project Management Goals
This phase requires a period of time depending on the size of the project and can last up to months. Creating a good organization, according to the needs of the project and the needs of the individuals, is essential.
Project Management Tasks
- Define the Project Target
- Define the Scope of Work
- Define the Time Frame
- Define the Available Resources
- Define the Cost
- Evaluate the Master Plan
- Accept the Master Plan
- Schedule Follow Up
- Cost Follow Up
- Performance Evaluation
Follow-up costs in - You need to follow up on the progress of the work. It is clear that the most important indicator is the project completion date calculated by the critical path.
Project Manager Skill
It is only intended to track the overall direction of the project through these indicators over relatively long periods of time. It is not a dangerous imbalance in one or some activities, but a deviation in the general direction of these indicators is a big problem.
Quiz
Introduction
Any large organization will have projects to undertake, so making decisions about the best project requires the use of economic tools and consideration of the risk assessment for each project. Uncertainty is a parameter that affects an economic study, so the study should calculate the risk assessment of a project using the Monte-Carlo simulation technique with the decision tree method.
Project Economic Analysis
Project Cash Flow
- Depreciation Methods
- Method of Net Present Value (NPV)
- Minimum Internal Rate of Return (MIRR)
- Payout Method
To measure the return on the project and the liquidity over the work of the project. When the difference in the value of the interest changes each year, the net present value will be different.
Economic Risk Assessment
- Probability Theory
- Probability Distribution of Variables
- Distribution for Uncertainty Parameters
- Choose the Appropriate Probability Distribution
Normal distribution is the distribution symmetrical about the mean and, more precisely, the arithmetic mean of the curve is divided into two equal halves. As a result, each curve depends on the value of the arithmetic mean and standard deviation, and any difference between the two parameters leads to a difference in the shape of the probability distribution. This distribution is used when the intended expression of the event's maximum value occurs in a given time period.
Decision Tree
Cs and Cf are the consequences in case of success or failure. Of course, you will not invest in the city in the case, but your decision will be clear to invest in the country, which will give more weight to the expected value of the invested money. This is an example where a slug is not available, and this is something that will affect the present value of the investment calculations, as in the following example.
Monte-Carlo Simulation Technique
The simulation model contains all the input data of the deterministic parameters, the random variables and the equations. The final output results in software renderings at the end of the simulation and contains the statistical parameters of the variable Z, which describes the limit state equation of cost and time. It can also give the frequency distribution of the value of Z's outcomes and determine the probability of increasing the cost to the limit of the budget.
Risk Adjusted Value (RAV)
Because most managers are risk averse, contrary to the primary assumption of EPV, the degree of risk aversion depends on two basic components: the company's wealth (i.e. bankruptcy-free) and budget level. RAV also depends on the estimated value versus the dispersion of the NPV outcome. If the mean value of NPV calculated from the Monte-Carlo simulation equals ten million dollars, a standard deviation illustrates the dominance of the scatter term, as it will be a very negative value.
Introduction
Pitfalls in Time Schedule Planning
Plan Single Point of Accountability (SPA)
First define the team members who will perform the required activities and make sure they have sufficient information about their potential and their relationship to the size of the project. If you want to use another experienced planner from another project contracted to work with you, do so at the beginning of the project. At the beginning of the work, it is very important to hold a meeting between the planning team, the official sponsor of the project or the director of the project, and the owner and his or her representative.
Starting the Plan
Now you have the main phases of the project and all the major phases have been agreed upon by the members of the project. To avoid errors in planning the Project Logic Control, the most important phases should be defined on the main wall of the office. There is a place to start at the beginning of the largest plaza in the north.
Work Breakdown Structure (WBS)
The structure of the work activities is divided into more than one level by the project. Define at the first level the main stages of the project and then in level two and level three, as in the previous example of the pipeline, there are three pipelines intended for its establishment. Having a common format across all elements of the project leads to simpler cost tracking and forecasting.
Responsibilities of the Team
Now the key stage plan is available and each key stage owner has defined responsibilities. Therefore, it is time to start estimating the time required for each activity in the most important phases.
Expected Activity Time Period
But it is essential to get information from others who have extensive experience, work in the same country or location, or have experience working on similar previous projects. If the same activity in similar projects, such as pouring concrete foundations, has been repeated before, but we need to choose a foundation of the same type, then it is preferable to be of the same type and location because, for example, remote desert areas are different from cities where labor is available and the efficiency of employment tends to be higher than in remote areas. For industrial projects, most of the projects are located outside the major cities, in the desert or in remote areas and all contractor and engineer headquarters are from the city where housing and normal building are famous activities.
Calculate the Activity Time Period
Perhaps after the excavation is complete, the pouring of regular concrete will begin, so it will begin after nine days, since the pouring of concrete does not have to wait until all the waste from the landfill is completed.
Time Schedule Preparation
- Gantt Chart
- Arrow Diagram Method (ADM)
- Precedence Diagram Method (PDM)
- Critical Path Method (CPM)
- Program Evaluation and Review Technique (PERT)
- Example
- Application of the PERT Method
The connection depends on the nature of the activities and this should be taken into account when preparing the schedule. Activities that have zero float are activities that cannot be delayed without delaying the completion of the project. External environmental factors surrounding the project may cause a deviation in the timing of planned activities.
Planning Overview
When you are assigned to a project, 50 percent of the project should be completed on schedule. The project will likely take twice as long as originally estimated by the previous project manager. You believe that the new project is not critical, but the project manager is the son of a board member.
Introduction
Project Cost Control
Cost Types
- Steel Structure Cost Estimate
- Detailed Cost
- Cost Estimate to Project Control
This process uses the actual costs of previously completed projects to predict the cost of. Once the values of the parameters are entered into the model, the costs of the project results can be obtained. The detailed cost estimate will be determined by the detailed construction drawings of the project and the project specification.
Economic Analysis to Project Cost
- Work Breakdown Structure (WBS)
- Organization Breakdown Structure (OBS)
- OBS/WBS Matrix
- Work Packages
- Cost Control
- Engineering Cost Control
Based on the previous table, the cost control parameters are calculated after six months from the start of the project. It is expected that the budget at the end of the project will be approx. The most the project engineering phase has is ten percent of the cost of the overall project.
Cash Flow Calculation
- Project Cash Flow
- Impact on Increasing Cost
- Project Late Impact
- Impact of Operation Efficiency
Figure (4.7) shows the impact of increases in project costs in relation to the owner. The project budget can be found in the project's charter, which has just been completed. An analysis shows that you will have a cost overrun at the end of the project.
Introduction
Resource Hiring
Project Organization
- Types of Organizations
- Selecting the Best Organization
It reduces communication between individuals in the project and people working at the corporate headquarters. After the completion of the project, there is no concern about the career of the individuals working on the project. There is strong communication between project members and between functional departments in head office.
Roles and Responsibilities of the Project Manager
- Project Manager as a Leader
This will be achieved if the project manager visits the site regularly. If the project manager was off-site, a project director must be appointed on-site. The ability to direct each project member to achieve project goals.
Administrative Organization for Total Quality Management
It is worth noting that when reviewing quotes and bids for any company, you should carefully review the organizational structure according to the quality of the staff and their relationship with different departments and determine the location and importance of quality to the company . From here we see that in modern organizations, which take quality into account, you should see an existing slot for the general manager of quality, who has direct contact with the chairman of the company, because it gives him power and speed in making decisions . -to make. The size of the quality team differs from organization to organization depending on the size of the project and the number of projects they are carrying out.
Team Member Selection
The competence of these people will be a matter of luck, so the project manager should expect this and prepare to avoid this trap. In the matrix organization, the individual will have two direct managers: one who is responsible for the technical aspects and the project manager. What are his/her feelings towards the project manager's instructions (happy, sad, angry, etc.).
Managing the Team
Sometimes the answers to those questions are not easy, but to achieve success everyone must be aware that each individual is important to the project. The choice of a successful team does not support the choice of faithful functionality, only in the sense that we want civil engineers and we have civil engineers, but an individual who joined the project should be able to work in a team environment. Trying to overcome the above items will ensure a high probability of success for the team.
Allocate Resources to Project Plan
- Example
An activity can move by itself without affecting the overall time for the project and this is represented in the table by the total floating time (TF). It is worth mentioning here that, in the case of large projects, a meeting should be held between a representative of the owner, the consultant and the contractor. At the same time, he wants to postpone some of the items to be assembled in another project and this will be studied in the chapter on costs.
Relation Between Project Parties
Document and Information Transfer
Information Transfer
This shows the form of the movement of information received by the project manager from the owner. The project manager receives information and distributes it to the department managers involved. If, after review, any errors or inaccuracies are found in the information, a report must be prepared for the project manager, who in turn sends it to the client for review.
Quality Control in the Design Phase
- Inputs and Outputs of the Design Phase
- Design Verification
- Change in the Design
- Approval of the Design
The project leader provides form (1a) to the heads of department and the work file to the project to record data in a form (7a). The responsibility of the project manager and planning engineer is to monitor the performance of all departments. The project manager and planning engineer should begin to prepare the final schedule after receiving schedules from all departments involved in this project.
