DEVELOPMENT OF A PROJECT

INTRODUCTION
 FEASIBILITY STUDY
• Initial Work
– Market Analysis and Production Capacity
– Competing Processes, Patent and License
Situation
– Legal Aspects
 FEASIBILITY STUDY
• Cost Estimation
– Investment Costs
• Onsite Items
• Offsite Items
– Operating Costs
 FEASIBILITY STUDY
• Profitability Analysis
– Profitability Analysis as an Engineering Task
 FEASIBILITY STUDY
• Profitability Analysis (con’d)
– Methods of Profitability Analysis
• Payout (Payback) Period
• Return on Investment (ROI)
• Dynamic calculations
– IRR
– NPV
 FEASIBILITY STUDY
• Site Selection
– Site Quality, Topography, Soil Conditions, Climate,
Flood Risk
– Raw-Material Availability Including Power, Fuels,
and Water
– Environmental Conditions, Environmental
Legislation, and Infrastructure of the Construction
Site
– Long-Term Availability of Qualified Labor
 FEASIBILITY STUDY
• Decision between Alternative Investments
– Preparation for Decisionmaking
• Risk Analysis
• Sensitivity Analysis
– Decisionmaking
 PRELIMINARY DESIGN
• Preliminary Design Costs
Project cost < $2.000.000 $2.000.000- $10.000.000-
$10.000.000 $100.000.000
Order-of- $3.000 $6.000 $13.000
magnitude estimate
Study estimate $20.000 $40.000 $60.000

Preliminary $50.000 $80.000 $130.000

estimate
Definitive estimate $80.000 $160.000 $320.000

Detailed estimate $200.000 $520.000 $1.000.000

Max S. Peters dan Klaus D. Timmerhaus, PLANT DESIGN AND

ECONOMICS FOR CHEMICAL ENGINEERS, McGraw-Hill, Inc., 1991
 PRELIMINARY DESIGN
• Preliminary Design Costs
 PRELIMINARY DESIGN
• Final Selection of Site Locations
– Medium- and long-term capacity of the local
(national) market to absorb the product
– Export to nearby countries
– Availability, quality, and price of raw materials
– Political situation and risks (e.g., risk of
nationalization)
– Tax laws, tariffs, possibility of repatriating profits
 PRELIMINARY DESIGN
• Process Design
– Block diagram
 PRELIMINARY DESIGN
• Process Design (con’d)
– Process flow diagram
 PRELIMINARY DESIGN
• Process Design (con’d)
– Determination of Final Process Data Design
• Compliance with emission limits.
• Plant safety (i.e., adequate margins of safety relative to
critical operating conditions).
• Maintenance of product quality.
• Control of startup operations and of planned and
unplanned shutdowns. This includes specification of
components and media required (e.g., heatup burners,
cooling and purge gases, and pressure-reducing valves).
 PRELIMINARY DESIGN
• Process Design (con’d)
– Determination of Final
Process Data Design
 PRELIMINARY DESIGN
• Process Design (con’d)
– Process Simulation
• ASPEN PLUS,
• DESIGN II,
• PROCESS,
• HYSIM, and
• SPEED UP
 PRELIMINARY DESIGN
• Process Design (con’d)
– Optimization
– Safety Aspects and Environmental Control
• Protection Against Emissions
• Noise Control
• Occupational Safety and Health
• Plant Availability
• Authority Engineering
 PRELIMINARY DESIGN
• Basic Engineering
– Equipment Specification
from the Process
Engineering Standpoint
 PRELIMINARY DESIGN
• Basic Engineering
– Materials of
Construction
– Plant Layout
 PRELIMINARY DESIGN
• Basic Engineering
– Preliminary Piping and Instrumentation Diagram
• All equipment and machinery, drives, piping or transport
routes, and fittings (including installed spares)
• Nominal diameter, pressure, material of construction, and
design information of piping
• Field instruments, control devices, and connections between
them
• Special fittings required for process control and safety, e.g.,
check valves, safety valves, level gauges, condensate drain
lines
• Significant dimensions of equipment and machinery
• Essential data on materials of construction
 PRELIMINARY DESIGN
• Calculation of Plant Costs
– Equipment
– Bulk Materials
– Other Costs
• Engineering and Procurement Costs
• Itemized Equipment Approach
• Calculation Based on Documents to be Prepared
• Construction supervision costs
• Commissioning Costs
• Personnel Costs
• Other Commissioning Costs
• Indirect Costs
 PRELIMINARY DESIGN
• Conclusion of Preliminary Design Phase
– Report
EXECUTION OF THE PROJECT
 EXECUTION OF THE PROJECT
• Scope of Work
– Detail Engineering
– Procurement services
– Civil work and erection
– Commissioning
 EXECUTION OF THE PROJECT
• Project Organization and Management Detail
Engineering
– Matrix Project Management
 EXECUTION OF THE PROJECT
• Project Organization and Management Detail
Engineering (con’d)
– Project Manager
– Project Team
 EXECUTION OF THE PROJECT
• Project Organization and Management Detail
Engineering (con’d)
– The Start Phase of a Project
 EXECUTION OF THE PROJECT
• Project Control (Schedules, Progress, Costs)
– Time Scheduling
• Bar Charts
 EXECUTION OF THE PROJECT
• Project Control (Schedules, Progress, Costs)
– Time Scheduling (con’d)
• Network Diagrams
 EXECUTION OF THE PROJECT
• Project Control (Schedules, Progress, Costs)
– Progress Planning and ControlNetwork Diagrams
 EXECUTION OF THE PROJECT
• Project Control (Schedules, Progress, Costs)
– Cost Planning and Control
– Project Report
 EXECUTION OF THE PROJECT
• Detail Engineering
– Process Engineering
– Plant Layout
• Plot Plan
• Piping and Instrumentation Diagram
– Apparatus and Machinery
– Piping
• Piping Specification
• Piping List
• Isometric Piping Drawings and Piping Model
• Piping Calculations
• Material Takeoff and Procurement
• Insulation and Coatings
– Control Systems
– Electrical Design
EXECUTION OF THE PROJECT

General arrangement drawing

 EXECUTION OF THE PROJECT

Section of a piping and instrumentation (P & I) diagram

 EXECUTION OF THE PROJECT

Guide drawing for a vessel Data sheet for a centrifugal pump

EXECUTION OF THE PROJECT

Piping classes (pressure – temperature diagram

EXECUTION OF THE PROJECT

Isometric piping drawing

EXECUTION OF THE PROJECT

Piping model
 EXECUTION OF THE PROJECT
• Procurement
– Purchase of Equipment and Services
– Expediting
– Shipping
• Planning and Execution of Civil Work and Erection
• Commissioning
– Plant Design and Commissioning
– Operating Manual
– Responsibility and Organization
– Preparation for Commissioning
– Plant Startup