Engineering Management

Presented by
Mr. Nguyen Anh Dung
Dr. Tran Anh Kim
Subject of the presentation
Introduce process to implement an engineering Project.
Introduce tools to manage engineering Project.
Interface Management.
Changes Management.
Others
1. Engineering stages
Conceptual Studies/ Front End Engineering Design (FEED)/
Basic Engineering.
Detail Engineering.
1. Engineering stages
Conceptual Studies/ FEED/ BE:
Subsurface Basic of Design with output are:

Number of wells;
Wells performance: flowrate; pressure

D&C (Drilling & Completion) CAPEX

assumption base on the market survey.
Key design parameters/ Product
Specifications
Process Configuration;
Concept Selections (Options & analyses);
High level schedule analysis;
Estimation Summary / Comparison of
CAPEX/ OPEX for all Options.
Concept Selection: 01 Concept
1. Engineering stages
Influence of Concept Design/ FEED/BE is very high while
expenditure is low => need to engage capable
Engineering house/ expert.
Question?
2. Detail Engineering Execution
Major Activities from Bidding until Completion.
Engineering Management System.
Question/ Answer.
2.1. Bidding Stage
Input data for Bid is Engineering
Develop further Detail Engineering for Bid
deliverables at BE stage which is if the ITB does not detail enough;
provided by Client along with ITB. Clarify the ITB; provide qualification/
Major Engineering Activities for Bid: exception;
Endorse the Engineering Deliverables
Generate the Procurement packages;
provided along with ITB (if required by
Procurement support: RFQ, TC, TBE
Client);
to support for cost estimation;
Optimise the design during Bidding if
Study Project specifications to highlight
applicable.
the special requirement which are
containing RISK, cost/ schedule
incurring possibility;
Prepare the Engineering Proposal
including Contract strategy; execution
plan; Subcontract (if needed) and CTR
in accordingly.
2.1. Bidding Stage/ Wrap-up
The engineering works for competitive Bidding of EPC/
EPCI Project is very much and required to be completed
during short period;
Need to have a good Procurement database;
Need to have senior engineers involvement;
Strong PMT team for Bid to make clear split scope of
work/ identify interface/ RISK and having good
clarification/ qualification/ exception & contract
negotiation.
Question?
2.2. Engineering Execution
1. Contract Technical Review (CTR): 2. Engineering Execution Plan key
Refer to BDC-04-TK-Contractual Technical management tools:
Review whichs containing check list Project schedule;
including:
Organisation chart;
Scope of work;
Package Engineer Matrix;
Endorsement requirement?

Mob/ Demob plan;
All Disciplines Contract technical review

MDR;
check list.

Communication procedure (workflow;
document management/ exchange; EDMS);

CTR reports: findings; list of reviewed
Interface/ change management procedure;
docs; punch list, screening technical/
Quality control.
economic risk, decision to close;
recommendation for outstanding punch
list; execution for close out and 3. Question: HOW TO DEVELOP AND MANAGE
monitoring. ABOVE TOOLS?
2.2. Engineering Execution
Project schedule: Communication Procedure:
CD => T&I => Construction => Contract requirement;
Procurement => ENGINEERING. Engineering management system

Procurement Plan; key milestone (1 st cut; (EDMS?);

MCD) Work location;

Engineering Key milestones: Interface requirement.

Endorsement; KO meeting; P&ID issuance; Interface Management Procedure (external):

HAZID; HAZOP; SIL; 30%; 60%; 90% Model 90% engineering relevant.
review; AFC for Structure Steel; Plot plan; Contract requirement;
Isometric drawings; All AFC Company system;
Organisation chart & Mob./Demob. plan
Number of interface parties.
Scope of work/ Contract requirement;

Project schedule;
Interface Management Procedure (internal):
following the PTSC M&C typical Procedure.
CTRs (from SOW);

Package Engineer Matrix.

Design change management: flowing PTSC
M&C procedure BDC-10-TK_Management of
MDR (Master Document Register): Design Changes
Engineering scope of work
2.2. Engineering Execution
4. Quality Management
Quality Control including a set Engineering
procedures/ work instruction of
Engineering Department;
Engineering Department shall responsible
to arrange the audit an executing
engineering Project of Company to ensure
that it is implementing in accordance with
Company system;
KPI: should be specific for a engineering
Project base on the KPI are developed by
Company. At the end of Project, Project
engineer shall responsible to collect all KPI
including supporting document for review
and approval.
5. Manage the CTR/ Project schedule
Engineering manager/ Project engineer
shall responsible to record man-hours are
burned for Project to ensure that it is
within the Budgetary. If the man-hour are
expanded more than budgetary, EM/
Project Engineer should identify the reason
and propose a correction plan i.e. change
the norm, claim impact from other
department or Client
All the time during Project execution, the
EM/ Project Engineer need to monitor
Engineering Progress and have catch-up
plan if any delay. If delay caused by other
department/ Client, Project team need to
have proper expediting and recording for
claiming cost/ schedule impact.
All delay need to be recorded in the
2.2. Engineering Execution
6. EDMS (Engineering Design Management S 7. Others Register for Engineering Work
ystem) PDMS Modeling Register
A secure workspace for managing, storage, (implementation/review)
organizing, look up, etc. various types of Interface checking
project documents. Instrument/Piping/Process/Mechanical/Struc
Document review/comment among tural Register
interested parties via customized Work- Isometric overall check list
flows Hold register
A common workspace to track, audit, KDCN register
update, expedite and control document TQ register
development activities.
Weight Control register
A secure workspace which supports
management documents of multiple project
Interface register
at once.
A secure workspace which enable data
integrity, safety and provide levels of
control exchanging documents both
internally or externally.
2.2. Wrap-up
Project managers should understand overall engineering
execution processing and management tools especially
the red highlighted;
Area of concern need to be regularly updated and
monitored;
Question?
3. Design Change Management
Principle 1: Major changes which are impact to multi disciplines must be
managed at appropriate time.
Principle 2: Document which are required be reviewed by multi-disciplines
are critical.
Change on critical document before AFC stage:
Project design basic, philosophy, specifications;

P&ID after IFA (after incorporation change from HAZOP);

Equipment layout;

Primary steel.

Change on document post AFC and impact to other discipline has to be

managed by DCN.
Change Vendor data after be approved to proceed with Construction.
3. Change Management Tools
KDCN (Key Design Change Note):
applied for major change which are
impact to multi-discipline;
KDCN Register: to monitor the
implementation of Change until the
change are incorporated into the
design;
Other tool to support for change
management:
PDMS modeling check list/ register;
Piping/ Instrument interface check list;
Hold register.
Change from Clients Instruction is to be
managed by Project Change Control
Procedure;
Change interface data from Others
Contractor is to be managed by
Interface manager and consider to add-
on KDCN if applicable;
Change from the Construction team
(change construction method/ sequence:
Interface manager/ Department
manager need to identify the internal
interface and highlight to relevant team
at appropriate time.
3. Wrap-up
Change management is Major Subject of any Project
Management. Manage the change is a difficult work and
even though it is well managed but nobody/ no system
can ensure that all change are predicted & managed.
Therefore:
All relevant parties MUST follow change management
Procedure;
All disciplines has to aware what will impact to other

discipline from their change and highlight to relevant

parties;
Questions?
4. Interface Management
External Interface: Among COMPANYs Contractors i.e. T&I CTR with EPC
Contract; FPSO CTR; Drilling CTR; Subsea CTR
Internal Interface:
Interface with Subcontractors/ Among Subcontractors/ Suppliers: HUC &

T&I; Loadout Subctr & TnI Subctr; Interface packages

Internal interface among department (Engineering/ Procurement/

Construction): should be considered as coordination procedure which

is using PTSC M&C typical management procedures.
4. Interface Management
Internal Interface Management
External Interface Management
External Interface: 90% related to
Engineering/ Construction Engineering
work => should be managed by
Engineering manager or who should have
Engineering Knowledge.
Management tools (be specified by
Client)
Interface split scope of work matrix;
Interface task register;
Interface task sheets.
Should use the E-room to record all
interface task.
Internal IM among CTR/ Subctrs and Subctr v.s.
Subctr:
Loadout CTR v.s T&I CTR;
Engineering CTR v.s. T&I CTR;
T&I CTR v.s. HUC CTR;
Management tools:
Number of interfaces/ type of interface are not
big => should be managed by an interface
register for each interface group;
Document exchange: need to set-up a document
exchange flow through DCC to ensure that all
latest interface document shall be distributed to
related interface parties;
Give interface parties a right to the comment (if
any) with the same time frame of direct
reviewers/ approvers;
Having regular interface meeting to discuss and
monitor interface issue.
4. Wrap-up
Interface manager must have engineering knowledge;
fully understands about the Contract, Project schedule
and critical chain related to interface task; be decision
maker for interface task are not specified in the Contract.
Engineering Manager should be Interface Manager for
medium Projects (i.e. WHP, FPSO Modules). But the
separate Interface manager should be required for Mega
Project (CPP, TLP).
Questions?
Summary of Training
List important points from each lesson?
Question?