A Project Report On

Information Flow System in Engineering Department of EPC companies

Submitted by: Mohit Sadhotra PRN 80 V Ramakrisnhnan PRN 107 Kiran Vaykar PRN 108 Bhushan D. Wadher PRN 110 MBA-I, 2010-12, B-Batch

Submitted to: Mr. Prashant Barge SIOM, Nashik

Information Flow System in Engineering Department of EPC companies

Index
S.No. 1. 1.1 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 3.6 4 4.1 4.2 4.3 4.4 5 6 7 8 9 10 Project Management The Project Life cycle Facets of project Client Contractor Consultant Different department of Engineering & their functions Process Engineering Equipment Piping Architectural, Civil & Structural work Electrical Instrumentation Project Implementation Engineering Phase Flow Diagram Of Information Flow In Engineering Department Data Flow diagram Modified Data flow diagram Advantage of new DFD Problem with new DFD Feasibility of new DFD Need for division Requirements of New DFD Cost Benefit Analysis Annexure-I Annexure-II (Please refer separate file) Annexure-III Please refer separate file)
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Description 3 3 7 7 8 8 8 8 8 9 9 9

Page No.

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Information Flow System in Engineering Department of EPC companies

1. Project Management
Project management is a carefully planned and organized effort to accomplish a specific (and usually) one-time objective, for example, construct a building or implement a major new computer system. Project management includes developing a project plan, which includes defining and confirming the project goals and objectives, identifying tasks and how goals will be achieved, quantifying the resources needed, and determining budgets and timelines for completion. It also includes managing the implementation of the project plan, along with operating regular 'controls' to ensure that there is accurate and objective information on 'performance' relative to the plan, and the mechanisms to implement recovery actions where necessary. Projects usually follow major phases or stages (with various titles for these), including feasibility, definition, project planning, implementation, evaluation and support/maintenance.

1.1 The Project Life Cycle

A) Conceptualization of the Project Conceptualization is the first stage in the project lifecycle. Conceptualization is the idea, thought, initial plan, first stage of thinking entrepreneur, manager or economic planner about his scheme, plan for elimination the existing problems in the existing operation or avail new opportunities prevailing. The concept may be to set up a new project or to expand the existing operation or modernize, replace with new concepts or technologies and to initiate action for quality of improvements. Formulation is further firming up of the concepts, ideas, thinking etc for putting the same into a realistic plan. When the

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concepts about an existing plan become more and more clear, it would become necessary to examine all the aspects related to decision-making for investment aspects may be technical, finance etc.

B) Initiation of the Project:

Before you can get to plan a project, the project has to be initiated. Project initiation consists of the following steps: i) ii) Create a document outlining the product or project. This initial document is informal compared to the project charter. It simply describes what will be created. A project feasibility report will need to be completed. Before investing too much time in a project, you must check to see whether or not it is feasible that you will be able to complete the project, product, or process with the available resources. iii) iv) v) Once you have determined the project is feasible, then a project manager and team will be assigned to the project. The project scope statement is the next deliverable. This deliverable outlines what will be done (the project scope), how it will be done, and why it will be done. Finally, a project charter is created that will demonstrate who is in charge of the project, the project's scope, and the project's critical success factors.

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C) Planning the Project Once the project has been approved, a deadline has been set, and the scope has been agreed upon, then the project planning phase of the project management life cycle begins. The project planning phase consists of the following steps: i) Review the project scope and revise the scope statement if necessary. You want to keep your project from entering a phenomenon known as "scope creep" where the scope of the project continually expands. Make sure the project scope is something that can be reasonably completed, is specific, and is measurable. ii) Complete project decomposition, resulting in the work breakdown structure. Project decomposition involves breaking the project down into its component parts: Milestones, tasks, etc., and the work breakdown structure depicts these parts in a hierarchical structure. iii) Once the work breakdown structure has been created, an organizational breakdown structure can be put together. An organizational breakdown structure demonstrates, visually, the hierarchy of the individuals involved in the project. iv) Resource allocation is now performed. Who will be responsible for what in the project? What will the budget be used for? What objects will be required for the project and at what points? Take time to carefully plan resources for the project. v) vi) vii) Create the project schedule. When will milestones need to be completed by? Who is responsible for each task in the project? How often will communication take place? Plan the project's budget and how resources will be gathered for the project. Perform a risk assessment. What risks are involved in completing the project? What budget will be needed should any of these risks materialize during the project execution phase? By planning now for unfortunate events, you can increase the likelihood that things will not go wrong during your project. viii) ix) Put together a stakeholder analysis and communication plan. When will communication occur, who is responsible for communicating what to whom? Finalize the project plan. Make sure all elements have been covered. Seek approval of the project plan from superiors. D) Project Execution The project management life cycle phase, execution, begins when team members actually begin working on the tasks assigned them by the project manager. During this phase, if a product is being created, then the product is put together. During the project execution phase, the following tasks are completed: i) Time management - the project manager checks to ensure that the project is being completed on schedule.

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ii) iii) iv) v)

Cost management - the PM ensures that all expenses are accounted for and necessary Quality management - is the quality of the product or process to the specifications of the stakeholders? Change management - should something change in the stakeholder's specifications or schedule the project manager may need to change the plans for the project accordingly. Issue management - during the execution phase, issues should be carefully tracked so that the project manager and other team members are aware of any problems that come up during execution.

E) Project Control Project control really happens close in proximity with project execution. Project control involves monitoring the project for risks and keeping those risks at bay. It also involves keeping changes in the project to a minimum. Project control often mistakingly gets lumped in with project execution functions, but it's important not to do this. At times, during the control phase, project managers may find that a given risk or problem forces them to revisit phase II - planning. This is because some risks or issues that come up and were unforeseen may make the project, as planned, unable to reach completion. Good project managers will implement a system to monitor and control their project's progress to ensure project success. F) Project Closure Project closure is one of the most oft-overlooked phases of the project management life cycle and yet it's no less important than any other phase of the life cycle. Project closure involves the following steps: Writing a project closure report. This report includes information such as the project sign off, releasing of the staff, cost management and schedule management strategies, lessons learned through the project, and what the results of the project were. Redistributing resources that were assigned to the project Filing any administrative paperwork regarding the project's completion. Preparing any stepping stones for the next project.

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2. Facets of project
There are three facets of project of any size like small, mid major mega in project implementation. These are as explained below:

2.1 Client
We all have heard the phrase Clients get what they deserve. This statement is often given both in good projects and bad projects. Its true to some extent, clients does play a very important role in any project or advertising campaign completion and its results. However its just not a client or a providing company who can destroy a project, it can be both. The major role of client is y y y y Project Definition Provide finance Statutory approvals Overall control

2.2 Contractor
Contractor provides managerial, supervisory, skilled as well as unskilled manpower, machines to construct the plants like construction machines including cranes, dumpers, mixers, welding machines, grinding machines etc and material like cement, steel, welding rods or any other item required for construction of the project.

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2.3 Consultant
Consultant provides services for process design, detail engineering for construction & procurement. Procurement services for major item to be ordered by the client & construction supervision services.

3. Different department of Engineering & their functions

3.1 Process engineering
The functions of Process Engineering are: y y y License and know how technologies Front-end process design. Preparation of material & energy balance, piping & instrument diagrams, equipment ms, equipment process datasheets, process control & instrument protection system, utility requirements, utility distribution diagrams etc. y y y y y y System functions like:Development of P & I diagrams, equipment layouts. Auditing designs for technical adequacy, operational safety. Drawing up of operation and maintenance manuals Integration of technical requirements for projects. Translation of basic engineering to detailed engineering.

3.2 Equipments
The functions of Equipment Department are: Layouts of plants Planning drawings Detailed specifications and drawings of plant systems and equipment for procurement Checking of vendor/data for technical suitability. Preparation of material control, stress and flexibility analysis, layout diagrams, isometrics etc. Preparation of installation specification of installation specifications and schedules of work.

y y y y y y

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3.3 Piping
The functions of Process Engineering are: PFD P&ID Routing Design loads Fluid flow analysis Wall thickness calculations Stress analysis Flexibility & Exp Analysis Support systems Material & coating systems Fitting & Accessories

y y y y y y y y y y

3.4 Architectural, Civil & Structural work

The functions of Architectural, Civil & Structural Engineering are:

y y y y y

Drawings for landscaping and establishing formation levels. Detailed designs for civil and structural works. Architectural plans for building and composite projects. Infrastructural development works. Valuation of assets, arranging soil investigations and contour survey.

3.5 Electrical
The functions of Electrical Engineering are: y Design and Engineering of power systems, fire alarm systems, power factor improvement systems, catholic protection systems, lightning protection systems, communication systems etc y y y y y Detailed specifications for procurement Sub-station layouts, cabling, earthing and & nbs lightning protection drawings. Single line diagrams, schematic diagrams etc. Vendor data review. Installation specifications and schedules of work

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3.6 Instrumentation
The functions of instrumentation engineering are:

Plans for instrumentation, automatic control, annunciation and shut-down of plants and systems

Specifications for instruments. -Hook-up drawings, control panel drawings, routing drawings etc. & sp; drawings etc.

y y y

Consultancy for updating of conventional instrumentation to distributed control system. Vendor data review Installation specifications and schedules of work.

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4. Project Implementation

Release of L.O.A. by client

Issuance of Job No. by Marketing

Identification of Project Manager & Project Team

KOM with Client for Project-Procedures, Design basis, & Special Requirements of Client, if any

Generation of Process Package

Detailed Engineering (Procurement / Construction)

Procurement of Material / Equipment / Package

Construction Contractors (Men, Machinery & Construction Material)

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A project is initiated as soon as the client issues the Letter of Acceptance (LOA) to the consultant to start the job because the consultant is required to take up the assignment immediately as per the terms of LOA. Marketing receives the LOA. This is followed by the issuance of job no. to the project department by the marketing department. Project department nominates a project manager for the given job no. / project. The project Manager and the project team are identified and a kick-off meeting (KOM) is arranged by the project manager with the client to decide the procedures, design basis and special requirements of the client. Based on the input conditions of the contract / work order, a process package is generated and issued for detailed engineering for procurement and construction. Detailed Engineering activities are performed by the respective engineering disciplines. It involves issuing PRs / Tenders etc. for procurement of materials and lining up contractors. It also involves issuing AFC (Approved For Construction) drawings to be issued to site for construction. Procurement activities are performed by the Contracts and the procurement department. Procurement involves acquiring materials, equipments and packaging. Construction involves identifying construction contractors, labor, machinery and supply of materials. The Construction proceeds as per the AFC drawings issued by Engineering. It includes the standards to be followed during construction. Free issue materials procured for the project flow to site from various vendors on whom the orders were placed based on Engineering specifications. Besides the drawings for construction from consultant, the client has to provide site and other infrastructure facilities for construction where the project would be implemented. On following the AFC drawings, the site activities of civil structural, mechanical, electrical, instrumentation etc. works proceed as planned. All the equipments/piping/electrical/instrumentation works are erected and duly tested as per specified standards and specifications. This leads to bringing the project to shape as per the defined scope. It is termed mechanical completion of plant. Then the activities of pre-commissioning and commissioning would start. And finally, the commissioned plant is handed over to the client.

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Information Flow System in Engineering Department of EPC companies

4.1 Engineering Phase

Basic Engineering

Detail Engineering

Layout Drawings Plant Layout Equipment Layout Electrical Layout Piping Layout

3-D Modeling Software

Extraction of BOM

Installation Tender to client

Contractor Mobilization at site

Site Execution

Testing & Commissioning

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Information Flow System in Engineering Department of EPC companies

The Engineering phase of the projects like construction of Power Plants, Refineries, chemical plants etc. start with the basic engineering which includes some R&D work like thermodynamics, heat balance diagrams etc. After this activity of basic engineering, detail engineering starts which includes preparation of 3-D models and drawings using various software packages like PDMS, PDS, Auto cad etc. as shown in the figures below.

These 3-D models are converted into drawings and Bill of materials (BOM) are extracted which are used to procure materials required for making equipments. The drawings are also sent to construction site for execution and erection purpose. If there is any discrepancy in the drawings, a Non Conformance Report (NCR) is issued backed to the engineering design office by site execution office. After whole plant is erected, testing and commissioning is done. With this Commissioning activity engineering phase is over.

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4.2 Flow Diagram Of Information Flow In Engineering Department

PROJECT CONTRACT DOCUMENT FROM CLIENT

PROCESS LICENSSOR FOR PROCESS DESIGN BASIS

ENGINEERING DEPARTMENT (DESIGN DEPARTMENT) PROCESS DESIGN PROCESS DEPARTMENT EQUIPMENT LIST, PROCESS DATASHEET ,EQUIPMENT SPECIFICATION, PIPING / VALVE MATERIAL SPECIFICATION ETC.

EQUIPMENTS

THERMAL SYSTEMS

ELECTRICAL

INSTRUMENTATION

PIPING

CIVIL /STRUCTURAL

MATERIAL REQUISITION

TO PROCUREMENT DEPARTMENT THROUGH PROJECT ENGINEERING MANAGEMENT GROUP MATERIAL REQUISITION SENT TO VENDORS FOR TECHNICAL / COMMERCIAL OFFER THROUGH EXECUTION

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TECHNICAL OFFER FROM VENDOR ENGINEERING DEPARTMENT THROUGH EXECUTION (PROJECT MANAGEMENT GROUP) TECHNICAL OFFER FROM VENDOR FOR EVALUATION

EQUIPMENTS

THERMAL SYSTEMS

ELECTRICAL

INSTRUMENTATION

PIPING

CIVIL /STRUCTURAL

FINALISATION OF VENDOR

KICK OF MEETING WITH VENDOR FOR DIFFERENT GROUPS (EQUIPMENT, ELECTRICAL, INSTRUMENTATION, PIPING ETC.) DRAWING AND DOCUMENTS FOR APPROVAL THROUGH EXECUTION & PROJECT ENGINEERING GROUP

EQUIPMENTS

THERMAL SYSTEMS

ELECTRICAL

INSTRUMENTATION

PIPING

CIVIL /STRUCTURAL

APPROVAL OF DRAWINGS & DOCUMENTS FROM DIFFERENT ENGINEERING DEPARTMENTS THROUGH EXECUTION & PROJECT ENGINEERING GROUP CLEARANCE FOR MANUFACTURING FOR DIFFERENT VENDORS

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4.3 Data Flow Diagram

P ro c e s s S pec s

Process Licensor design documents

Client

Process Dept.
Lic e nsor S pe c s S pec ific ations P roc ess S pec s

C ontrac t

S pec ific ations

Equipment Engg

P roc ess S pec s

Engineering Data Center

S pec ific ations

Piping Engineering

S pec ific ations

Electrical Engg

P roc ess S pec s S pec ific ations

P roc ess S pec s

Civil/Structural Engg

S pec ific ations

Engineering Systems

P ro c e s s S p e c s

P roc ess S pec s

Instrumentation Engg

Specifications
A pprov e dT echnical S pec ifications V endo rT echnic al S pec ifications

P /O releas e

Procurement Dept

V e n d o r C o m m e rc ia l o ffe rs

A pprovedT ec hno c om m erc ial offer

Finance Dept
A pproved C om m erc ial offers

Project Mgmt Data Center

T ec hno -c om m erc ial offer E nquiries

Vendors

P/O to the selected vendor

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So what we have decided that we will implement few changes in the Engineering departments i.e. division of engineering departments into specific sub departments so that information will directly go to them without any delay.

Rotary

EQUIPMENTS

Static

Packages

Heat Balance THERMAL SYSTEM

Steam Analysis

Blade design

CABLE TRAYS ELECTRICAL

TRANSFORMER

SWITCHYARD

CONTROL PANELS INSTRUMENTATION VALVE CONTROLS

PLANT CONTROL

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LAYOUT

PIPING

STRESS ANALYSIS

HANGER & SUPPORT

FOUNDATION

CIVIL/STRUCTURAL

STEEL STRUCTURES

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4.4 Modified Data Flow Diagram

P ro ce ss S pe cs

Process Licensor design documents

Client

Process Dept.
Lice ns or S pe cs

C ontract

S pecifications

Equipment Engg
Rotary Static Packages
S pecifications P rocess S pecs P rocess S pecs S pecifications S pecification

Piping Engg

Layout Stress Anlys Hangers

Engineering Data Center

Electrical

Engg
Cable Trays
Trans ormer
P rocess S pecs P rocess S pecs

Civil/ Strctural
Foundation Steel Structures

Switchyard
S pecifications S pecification

Thermal Systems
Heat Balance Steam Anlys Blade design
P rocess S pecs P rocess S pecs

Instrumentn Engg
Ctrl Panel Valve Ctrl

Speci ications or material requisition

A pp ro ve d T ec hn ic al S pe cific at io ns V en do r T ec hn ic al S pe cific at io ns

Plant Ctrl

V end or C om m ercial offers

Finance Dept
A pproved C om m ercial offers

Project Mgmt Data Center

P/O to the selected vendor

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P /O release

Procurement Dept

A pprove dT ech no -

com m ercial offer

T echno -com m ercial offer

Vendors

E nquiries

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5. Advantages of New DFD

1) 2) 3) 4) 5) 6) 7) 8) Increased efficiency of person Less time required for completion of work More clarity about work i.e. limited scope of work Person will be more skilled as compared to earlier system & will have in-depth knowledge about his domain. Elimination & reduction in rework, which will save the cost Confidence level of individual about his work will be high The allocation of work to individual or group of individual will be easy, because the manager will have more clarity about role of individual or group of individual. Time required to finish the engineering will be less & due to this EPC firm can use this time in execution. Also, because of this there will be no delay in project, which results into more customer satisfaction.

6. Problems with New DFD

1) There will be less flexibility, because individuals can perform specific work. 2) The individuals may get bored due to monotonous work. 3) Suppose firm get project, which will require only one kind of work, then in this situation only few individual will be overloaded & others will be idle. Because very few people will have the knowledge of that domain. 4) If few people from particular group left the company at same time, then there will be sudden void in that department & that department may face certain problem related to work. 5) The manpower required might be more as compared to earlier system. 6) Due to increased number of groups, there might be coordination problem between the groups.

7. Feasibility of New DFD

1) It is feasible, because we are not changing the old system drastically. 2) We are just dividing the existing departments in sub-department according to specialization. 3) It won t cost too much. The only cost is cost associated to additional no. Of people & coordination cost between different department. 4) But above cost can be justifiable by increased efficiency & accuracy of working, because of which firm can execute more number of projects in specified time, which in turn fetch more revenues for firm. 5) To avoid failure of new system, the firm should incorporate above changes only in one of the departments. If the new system gets successful in this department, then step by step firm should incorporate above changes in all the departments.

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8. Need for Division

1. Less clarity about work 2. Less confidence among engineers and designers 3. To increase the capability and efficiency of the individual through knowledge enhancement 4. Lot of rework and cost is more 5. Lot of delay in allotment of work 6. One manager has to head the whole department

9. Requirements of New DFD

1. 2. 3. 4. Proper training of specific modules for individual departments. Standard operating procedures have to be developed for new sub-departments. New managers for Sub-departments Proper coordination plan and quarterly updates, review meetings of sub-departments has to be done.

10. Cost Benefit Analysis

1. New DFD : Less man days and quality of the work will increase Old DFD: More man days and less quality of work hence lot of rework. 2. New DFD : Non-Conformance report will not come from the site. Old DFD: Lot of NCRs are coming form site and hence delay at site will incur lot of cost. 3. New DFD : Time required for the completion of the project is less, because of which firm can execute more number of projects which in turn increases revenues for the firms. Old DFD : Time required is more and hence less number of projects are executed and in turn less revenues. 4. New DFD : Number of employees are more and hence expenses (salary) is more. Old DFD : Number of people are less , so expenses (salary) is less.

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ANNEXURE-I

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