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: 10 | P a g e
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 12 | P a g e
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. 15 | P a g e
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. 16 | P a g e
- 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.