Unlocking The Potential Delivering World Class Project Performance

Shell Global Solutions
Unlocking the potential

Delivering world class project performance
Gasex 2004 - Ren van Vliet

Copyright 2004 by Gas Association of Singapore
Roadmap
What it takes to deliver world class projects
Our experience
The Holistic approach to projects
Conclusions
Value Influence
SCOUTING
Opportunity
Identification
FRONT END DEVELOPMENT: FED 1, 2, 3
Select
Develop
Good Definition
Value
95% Costs
5% Costs
VALUE
REALISATION
Construct
Operate
Good Execution
Poor Execution
Good Execution
Poor Execution
Poor Definition
Good project definition and execution
Poor project definition and good project execution
Good project definition and poor project execution
Poor project definition and poor project execution
IPA Benchmarking
Effective Project Development & Execution
Strategy/Exploitation
Alignment of Functions
(Flexibility in Early Stages)
Business
Strategy
Stakeholder
Interests
Technology
Strategy
Development
Commitment
Front End
Development
Use of
Value Improving
Best Practices
Practices/
Minimum
Scope for
Business
Needs
Leading Technology
Results
Op
L tim
Executed Coow Caol
SAFETY
st st
with
Minimum
Change Optimal
BETTER
Cycle Time
IRR
(Detailed
Planning and
t
Control
llen rf.
e
Process
c
Ex et Pe
in Place)
ss
Timely Involvement of Contractors/Vendors

(Appropriate Selection)
D-I-S-C-I-P-L-I-N-E
Risk Assessment Throughout with Particular Attention to

Schedule Issues and Avoidance of Turnover of Key Staff
Key Elements of Value Maximisation
Front End Loading Rigorous Front End Development

Process
Use of Value Improving Practises (VIPs) / Best Practices
HSE & Sustainable Development
Risk Management throughout lifecycle
Alignment of Functions Business, Stakeholder, Technology
Integrated Teams
Owner Core Competence!
* Front End Loading
Use of Value Improvement

Processes drives cost down
Primary Application of Mandated Processes
Project Value Processes
Scouting
Identify
FED1
FED2
FED3
Front End Development
Implementation
Operate
Implementation
Operation
1) Building the Project Team

2) Opportunity Framing & Project
Goal Setting
3) Contracting and Procurement
Strategy Development
4) Risk Management
5) External Benchmarking
6) Design Class
7) Project Assurance
Peer Review
Assurance Gate Review
8) Value Engineering
9) Lesson Learned
Retrieval
Capture
10) Constructability
11) Operational Implementation
Planning
12) Availability Assurance /
Reliability Modelling
13) Human Factors Engineering
Green = Mandated Workshop or Focused Meeting
Orange = Recommended / optional Workshop or Focused Meeting.
Abandon
Project Guides
1A HSE & Sustainable Development
1B HSE & SD Management of Construction
2
Owners Costs
3A Principles of Capital Cost Estimating

3B Principles of Project Scheduling
4
Project Services Agreement
Project Contracting & Procurement Realisation
Project Control
Project Premises, Execution Strategy , Plan and Implementation (PPD, PES, PEP,
PIP)
Basis Of Design /Basic Design Packages
Project Specification
10 Project Checklists
11 Building the Asset Development Organisation
11
Project Business Process

Project Management and Work processes
Project
Value
Processes
Project
Value
Processe
s
Project
Value
Processes
Project
Value
Processe
s
Project
Value
Processes
Project
Value
Processe
s
Project
Guides
Project
Guides
Project
Guides
Project
Guides
Project
Guides
Project
Guides
Scouting*
FED 1
FED 2
FED 3
PPD/PES/OIP
BOD/PES/OIP
BDP/PEPOIP
BDEP/PIP/OIP
Benchmark
Benchmark
Implementation
Operation
Benchmark
AG 3 +/- 10%
Benchmar
k
AG 2 +/- 20%
AG 0 > +/- 30%
Benchmark
AG 1 +/- 30%
* Timing of of OGP
engagement based on
customer needs
** Follow on support and information

gathering (PIR, Benchmarking,
warranty support)
AG = Assurance Gate
12
Shell Global Solutions Projects
HDS
Athabasca
Oil Sands
Sakhalin
LNG
HDS
The Hague
Houston
Altamira
Venezuela
LNG
Dongting
Coal Gas
Qatar:
SMDS
Reinst.
SPDC
LNG
Import
PDO:
Oman
NLNG +
Gabon:
Rabi
Shell/CNOOC:
Nanhai
Lube Oils
Kuala Lumpur*
Woodside
LNG4
HDS
13
NIGERIA LNG Development

Significant Development over last decade:
NLNG Train 1/2

Cost:
far below budget (>10%)
Schedule:
1 month early delivery
Basis
for continuous investment in
Train
operational
Train
4/5
under construction
Train
development phase
14
NIGERIA LNG Train 1/2

Key Success Factors:
Structured approach
High level of FEL
Project team development excellent

Strict quality control
No change policy
Adherence to the project execution strategy
15
Key Elements of Value Maximisation
Front End Loading Rigorous Front End Development

Process
Use of Value Improving Practises (VIPs) / Best Practices
Risk Management throughout lifecycle
Alignment of Functions Business, Stakeholder, Technology
Integrated Teams
Owner Core Competence!
16
17
Owners
GAP !
Advisor
More Owner
Best !
Extend EPC
to EPCm
PMC
EPC Competence
Owners Competence
Owner
EPC
Sub-Contractors &
Vendors
Resources : Capacity
18
POLE Position - A Working Partnership

Pathfinder
Main Review
Implementation
Support
Key Owner Competencies
Lessons Learned
Risk Management
Continuous
Improvement
Strategy & Concept Development
Value Improving Processes
Project Management & Controls
Construction Management
Commissioning & Start-up
19
Holistic Approach to Capital Projects

Project
Implementation
Management
Tools &
Techniques
r
fo
e
op s
c
s s
al ine nity
tim us rtu
p
B po
O
Op
Ex
ec
ut
io
n
Integrated Solutions
from SGSI
Project
Development
ex
ce
lle
nc
e
s
er nt
n
e
ow tm
g s
in ve new
s
i in o
t ties
im on
x
i
g
a
M urn din rtun
a
t
re Le ppo
o
Al
i
fu gnm
op nct en
po ion t o
rtu s & f
ni
ty
Tools &
Techniques
Tools &
Techniques
Project
Performance
Tools &
Techniques
Business
Opportunity
20
Excellence in Project Delivery requires the optimum

Management of the key Owner competencies at the
right phase in a project life cycle
There is a proven link between management and use
of owner competencies and successful project
outcomes HSE , Quality, Cost and Schedule
Thank you for your attention!


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