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Program & Batch: PGDM 2013-2015


Term: Term V
Course Name: Project Management
Name of the faculty: Dr. V.K. Gupta
Topic/ Title : Installation of Boiler in a gas based power plant
Original
or Revised Write-up:
Original
Section A
Group Number: 1
Contact No. and email
of Group Coordinator:
7840083956
ft13krishnakumargupta@imt.ac.in
Group Members: Sl. Roll No. Name
1 1301-100 Krishna Kumar Gupta
2 1301-399 Sachin Jaiswal
3 1301-108 MVS Srikanth
4 1301-317 Ankur Sharma
5 1301-332 Debanjan Sarkar
6 1301-018 Amit Kumar Swain
7 1301-438 Vineet P. Maniar







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Table of Contents
Introduction .............................................................................................................................. 3
Aim of the project .................................................................................................................... 3
Project Scope ............................................................................................................................ 3
Work Breakdown Structure (WBS) ....................................................................................... 4
Project Schedule ....................................................................................................................... 5
Gantt chart ............................................................................................................................... 6
Network diagram ..................................................................................................................... 7
Quality Assurance & Control ................................................................................................. 8
Communications planning ...................................................................................................... 9
Organization Structure ......................................................................................................... 12
Health, Safety and Environment (HSE)............................................................................... 14
Risk Identification .................................................................................................................. 15















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Introduction
A Boiler is used to produce steam which further drive the steam turbine which in turn
produce power. The input to boiler is water and heat.
Aim of the project
Overall scope includes engineering, procurement, construction and commissioning of
238MW gas based power plant for Naphtha cracker unit of IOC Ltd at Panipat, Haryana. The
power plant consists of following:
- 5x 25MW gas turbines
- 5 x 95tph Heat recovery steam generator
- 2 x 405tph boiler
- 3 x 38.8MW steam turbine
1 no of boiler has been taken for study for this project.
Project Scope
Objective
The scope of this project is to design, engineer, manufacture, inspect, test and supply of
Boiler complete with all the accessories. The project should be completed within 16 months
at a cost not to exceed XYZ.
Technical requirements
The boiler should meet the following technical specifications
Description Unit Max Rate
Flow TPH 406.5
Pressure Bar 131
Temperature Degree centigrade 529

The following latest edition codes, standards should be used in the entire process of the boiler
Design, Constructing, Inspection and
Testing
IBR
Materials IBR/ASME
Performance testing ASME PTC 4.1

The boiler shall be completed in all respect and any items not covered in the specifications
but essential for proper installation of the boiler shall be included by the manufacturer. All
the applicable safety codes and national codes as per latest IBR guide lines shall be followed
by manufacturer while designing, manufacturer and installation of the boiler. Noise level
shall be restricted to 88 DBA at 1 mtr from the outer surface of the boiler.


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Milestones
Following are the major milestones of the project
1. Release of GA
2. Release of civil and structural Drawing
3. Release of Mechanical and Piping drawing
4. Release of Instrument and Electrical drawing
5. Completion of procurement
6. Completion of civil activity at site
7. Completion of structure work at site
8. Completion of Hydro test at site
9. Completion of instrument and electrical work
10. Commissioning of boiler
11. Completion of performance run

Work Breakdown Structure (WBS)


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Project Schedule



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Gantt chart



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Network diagram

Critical Path:
Order - Release of Boiler Piling Layout - Release of Boiler GA - Preparation of Technical Specification - Piling for Boiler - Boiler
Foundation Erection Hydro test - Burner Commissioning - Ready for Steam generation
In activity IDs: 1 2 3 4 5 6 7 8 12 18

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Quality Assurance & Control
To ensure the required quality for the boiler QAP (Quality Assurance plan) was prepared.
Separate QAP was prepared for each and every equipment (Fan, Motor, Pump etc.) and parts
(Pipe, Tube, Instrument etc.). QAP has all the details about the different manufacturing stages
of that part. For each stage checks are required as per ASME (American Society and
Mechanical Engineers) and IBR (Indian Boiler Regulation). In the QAP these checks are
mentioned in front of every manufacturing activity. These checks was performed by vendor,
and witnessed by client, customer, TPIA, and consultant as per agreed during award of
contract. Only after due clearance given by the respective agency the material move for next
production stage.
Following agencies has involved in witnessing the quality of the material at vendor place -
1. Customer In this case customer was Larsen & Toubro ltd. In the QAP it was clearly
mentioned that at which stage inspection by customer is required. Vendor raises the
inspection call to customer for inspection, once the material become ready for
inspection as per QAP. Quality engineer from customer visit the vendor place and
witness the test as per requirement of QAP. If the performance of the test is as per the
requirement the material is allowed to go for next stage of production.

2. Third Party inspection Agency (TPIA) To ensure the proper quality client insist
for third party inspection. As third party being the neutral agency ends all the doubts
for customer being favourable towards the vendor for early dispatching of the material
to the site. This TPIA has appointed jointly by client and customer. Customer raised
the inspection call after getting the same from vendor and subsequently engineer from
TPIA visit the vendor place and witness the test.

3. Client/consultant sometimes in case of critical equipment client send his quality
person to the vendor place to witness the test.

All the above mentioned quality checks requirement at different stage of
manufacturing at vendor place is clearly mentioned in the QAP. Only after due
clearance given by involved agency the material move to next stage of production. If,
and defect has found during inspection a defect report has prepared and submit to
customer for further action.

Quality at Site
To ensure the quality at site separate QAP for all the erection activities has prepared as per
requirements of ASME codes and IBR. After that these QAP was approved by the client
appointed consultant. These QAP was rigorously followed during the erection at the site.
Consultant/client witness all the test as per QAP. Only after satisfactory performance erection
activity moves to next stage.


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Communications planning
The entire process involves sizeable communication between various stakeholders viz.
client, vendors, and consultant as well as between various departments involved. To ensure a
smooth communication process between all stakeholders and that the project is not hampered
in case an employee involved with the project, the following channels are used:
1. Centralized system t-bits for communication:

- The company has a centralized system called t-bits which is used for all
communication purposes. All concerned parties have to compulsorily register on this
system as the future payments will be linked to the ID that will be created on
registration.
- All vendors, client, consultant as well as the departments involved in the project will
have to register and get an ID.
- There is no cap on the number of IDs that can be created for a single party but the
payment will also be relative to the IDs created. For example, if a vendor decides to
register under 10 different identities the payment to that vendor would be divided
among those 10 different IDs.
- The t-bits system does not have restrictions on the number of IDs that can be created
per party.
- The ID creation has to be done as soon as the parties start working on the project.
- Once the ID has been created, all communication between the parties will have the
parties ID and each communication mail will have a reference number.
- Also all the communication has to pass through the t-bits system and not anywhere
else.
- The reference number thus created will help to locate the file for future reference.
- By having such a system in place, no document related to the project like blue prints,
pipe drawings and so on is lost and it also helps to quickly locate the files in the server
even by people who were not initially associated with the project.
- The t-bits system ensures transparency and prevents data loss by storing all the data
related to the project on a single server under a single file related to the project.

2. Storage of data
- All communication regarding the project including documents, drawings and other
material is stored for future reference as explained earlier.
- For this purpose, the data is stored on a central server.
- The server has a partition to store the information related to the entire project.
- Each project has a space named after it with all the data related to it. For example
boiler installation project at site X would be named as Boiler_X.
- But since this server contains many sensitive data as well, there are varying levels of
access to the server.
- For example, an engineer would only have access to the drawings and not to the
purchase orders while the head of the company would have access to everything from
the drawings to the costing of the project. In short access for lower level employees is
limited related to only their work.
- Storing the data on the centralized server serves two purposes:
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i. It helps create a database which can be accessed later and in no time.
ii. The data can be accessed from anywhere across the globe. This helps to solve
problems quickly and take critical decisions by the higher authority in case the
need be. For example if the project requires urgent approval based on some
input by the consultant, the higher management sitting in the corporate
headquarters can see the communication and the justification and decide
accordingly.

3. Use of SAP:
- For the purpose of procurement from vendors, purchase orders have to be released as
a confirmation to the vendor.
- This is done with the use of SAP software
- In SAP the purchase manager or the procurement manager has the right to raise the
purchase order in which the vendors name, ID and other details will be mentioned.
- As soon as the PO is raised the finance department will get an intimation to block the
requisite amount for payment to the vendor based on the credit terms.
- In case of foreign vendors, this is useful as payments are made through Letters of
Credit (LCs) and LC can be opened only on the basis of PO which acts as a surety of
the order being placed.


























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The entire communication process can be explained via a flow chart as below:



























T-bits
system
Client
Vendor
Consultant
Department
Unique ID
Unique ID
Unique ID
Unique ID
Communication
(with reference
no.)
Server
Stored on
Accessible for reference
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Organization Structure
Larsen & Toubro ltd has following capability centres for execution of various projects.
1. Engineering capability centre - This capability centre has following separate teams
I. Civil engineering
II. Structure engineering
III. Piping engineering
IV. Rotary Equipment
V. Control and Instrument engineering
VI. Electrical engineering
VII. Project management
This department takes care of engineering activities of all the projects. Separate
manpower has been transferred into the project as per the requirement from all the divisions.
They exclusively work only on that project until completion of that project. Every department
has one head who monitor the progress of all the project work pertaining to their department.

2. Quality capability centre This department takes care quality related aspects of all
the projects from bidding stage to handing over the project to customer. This centre
prepare all the quality related documents like QAP, Test procedure, NDT etc.

3. Procurement Capability Centre This department involves in procuring the
material for the projects. They first invite bids from different vendors as per the
technical specifications and later forward them to engineering department. Once the
bid meet all the technical requirements, vendor has been asked for submitting the
commercial bid. After that negotiation with vendor happens and purchase Order (PO)
has been released to vendor.


4. Execution Capability Centre The primarily work of this department is at site. Thus
department takes care all the erection work at site from scratch to handling over the
plant to customer. Once the project has been awarded, this department become active
and start civil work as and when drawing got released from engineering department.
Subsequently this department send manpower to site as per release of drawing and
receipt of material at site.

5. Commissioning Capability Centre This capability centre does all the
commissioning related work. First they made commissioning procedure for all the
requirement and then get them approved from client/consultant. This centre send the
manpower to site after erection activity gets over. A handing over protocol has been
signed by commissioning team with erection team. This protocol formerly announce
that erection of that particular equipment has been completed and is ready for
commissioning.

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6. Contract Capability Centre This centre prepares the billing break up in consultant
with client/consultant. They raise the monthly invoices to client as per the billing
break up. This invoice consist of 2 types of bills 1) For site erection 2) for material
which has receipt at site.

7. Planning Capability Centre This department does planning and scheduling of all
the projects in consultation with all the other department. As every project being
unique in certain aspect hence, different planning and scheduling is required for every
project.

Larsen & Toubro ltd followed Matrix arrangement for execution of projects. Once the project
has been awarded a separate task force has been formed for that project. A separate cost code
has also been created for all the finance activity of that project. For every project a project
director and project manager has been appointed. From all the above mentioned capability
centres manpower has been shifted to that task force as per the requirement of that project.
This manpower reports to the head of their respective capability centre but at the same time
also report to the project manager and project director of that project. The head of the
capability centres are equally responsible with the task force for completion of the project
with in time. Project Director has all the power to take the decisions of the project. When and
how much manpower is required is decides by project director. He can ask for any number of
manpower for that project from respective capability centre. Also when to release the
manpower is decided by project director only.
Below is the organization structure for this project:


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Health, Safety and Environment (HSE)
HSE department is responsible for all the safety related activities at site. Their primarily
responsibility is to ensure proper safety environment at site. At site plenty of activities
happens simultaneously which involves manpower, cranes, earthmovers and other equipment
hence, it becomes very necessary to follow proper safety norm to prevent any loss of
manpower or injury.
Following are the main safety precautions followed at site.
1. Safety shoes (specially made for site work) has to be wear compulsorily by all the
engineers and worker while working or roaming at site
2. Safety Helmet has to be wear during work or roaming inside the construction area
3. Safety glasses during storm wind
4. Safety belt while working on height
5. Safety meeting among workers were organized on regular basis in different groups to
make workers educate about safety
6. To encourage workers to follow safety norms awards has been given to them for
following safety norms
7. For working at height and inside the furnace safety permit has to be taken from HSE
before start of the work
8. Strict penalty to be imposed on the contractor for violating the safety norms.
9. Safety slogans and posters were put all around the site to make workers aware about
safety
10. Different kind of permit i.e. welding, NDT test etc. has to be taken from HSE
department before commencement of the work.
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11. Sudden joint visit along with customer and clients safety engineer were made to check
the safety
12. Before finalizing the contractor it was made mandatory for contractor to provide all
kind of safety equipment like shoes, glasses etc. to their workers and engineers
13. Proper drinking water and sanitation (Mobile toilet) facility to be arrange for workers
14. Barricading of the area in case of digging of the land
15. Safety tag to be put on the equipment during commissioning
16. For cranes or earthmovers test certificate has made mandatory before being used
17. Fire protection to be ready before starting of commissioning activities
18. All the Diesel Generators has been checked on environmental point of view before
being used for temporary power
19. Primary healthcare centre to be established at site for minor injury
20. An emergency vehicle has always kept ready in case of any fatal injury
21. While operation of cranes and earthmovers the area to be barricaded in the span of
boom of the crane

HSE engineers from both contractors and customer ensure proper implementation of
all the above mentioned safety norms. They keep roaming around the site and inspect
all the activities on safety point of view. They have all the rights to stop the work if,
any safety norms is violated. They also take helps of site engineers to educate the
workers about safety as workers are in constant touch with engineers hence, they tend
to believe site engineers instead of HSE engineers.
In the morning every day contractors safety engineer prepare the work permit and get
it signed by L&Ts safety engineer. L&Ts safety engineer only after due checking of
all the safety precautions sign the permit and only after that work has commenced at
site.

Risk Identification
Risk is an inherent part of any project. There are various risks involved in the installation of
boiler which can be summarized as below:
1. Atmosphere Risk:
- This is one of the major risks in the installation of the boiler. This is due to the
fact that it is highly unlikely to predict future weather during the lifetime of the
project.
- This makes the project highly dependent on atmospheric factors like rain, wind
storms and high temperatures during summers, fog during winters, floods and so
on.
- To have a rough estimate of the weather conditions past data is studied to predict
any irregularities in atmosphere and thus precautionary measures accordingly.
- In spite of taking such measures, there is a buffer of a few days while estimating
the total number of days for the completion of the project.

2. Labour Strike
- Another risk is associated with the project is the labour issue.
- Labour can go on a strike unannounced which can result in loss of many days.
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- Such events cannot be forecasted beforehand and the only solution is to sort out
the matter at the earliest.
-

3. Truck Operators Strike
- This is another strike that can cause huge delay.
- This is because around 60% of the project weightage is that of materials. Hence
the materials should reach the site on time.
- But events like a nationwide strike of truck drivers leads to a delay.

4. Unavailability of resources
- There are certain resources which need to be made available by clients.
- But unforeseen circumstances at the clients end will lead to a delay in the project.
This cannot be predicted beforehand.


5. Accident
- Accidents like collision, fire, and injury to the workers present on site can also
delay the project.

6. Financial Risk
- There are various instances when the cost of the project shoots up drastically.
This is known as cost overruns.
- Cost overruns may be due to inflation or if the material is imported, then currency
fluctuations.
- The second case can be taken care of by hedging your payments in case the local
currency is expected to depreciate.

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