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ABOUTEPC

TheEPCcontractorismadeupofEngineering(design)consistingofvariousdisciplines,ProcurementandConstruction.
ThatsthenameEPCstandsfor.Processdiscipline,thebackgroundofwhichischemical,isusuallytheleaderofother
disciplines.Pipingandequipmentdisciplinesaremechanicalbased.Instrumentandelectricalarefromelectronicsand
electrical.Civilissupportingroletopipingandequipment.

Amongthem,theprocessoutlinesaplantandinputdatatootherdisciplines(piping,equipment,instrumentand
electrical),suchasdesignbasis,processflowdiagram(PFD),processdatasheet,equipmentlist,pipingand
instrumentationdiagram(P&ID),andutilityflowdiagram(UFD).Piping,whichdesignspressurizedpipescarryingsteam
orothermediaandisusuallyspacedominantwithkindsofequipment,willcoordinatealltherequirementsandputthem
intothe3DprogrammecalledPDS(PlantDevelopmentSystem).The3Dpipingisometricdrawingmodelinggivespipe
routesandindicatesthepossibleroutingspaceforinstrumentandelectrical.It'susuallyaheavyworkloaddiscipline.
Theplotplanisthemasterplanproducedbypiping.

MATRIXORGANISATION

Project1 Project2 Project3 Project4 ProjectN


Engineering >
Process
|
Piping
|
Civil
|
Equipment
|
Instrument
|
Electrical
|
Procurement |
Construction v

TheEPCorganizationoperatesbymatrixsystem.Theabovechartshowsthattheprojects(horizontal)andfunctional
departments(vertical)arerunningparallelled.Practically,oneprojectteammayhandleafewprojectsunderthesame
client.Engineeringdisciplinesserveallprojects,providingprojectswithdrawings,specifications,billofmaterial/
quantities,technicalbidevaluations,etc.,andattendingtositeproblems.TheyareEPCsmainworkforceandalsothe
mainsourceofrevenue.Therefore,itisvitaltosetbudgetandcontrolmanhoursspent.Procurementistoget
equipmentandbulkmaterialsupplier,negotiatingcostandshipment.Constructiondealswithsubcontractors,site
management,fieldprogressmonitoring(usingLastPlannerConcept),safetyandQC.Theprojectfunctionsasthecenter
pointtodrivetheproject,controlthecost,coordinatetheengineeringdisciplines,procurementandconstruction.APM
withafewyoungengineersplusonesecretary,whosupportsdocumentationanddossier,formaprojectteam(called
PMT),whichmayspecializeinoneofthefieldsofwork,eg.,refinery,petrochemical,chemical,orpharmaceutical.Itis
thecontactpointtotheclient.

ThemainadvantageofEPCistooverlapthedesign,procurementandconstructionstagesandthereforereducetotal
projectduration.Italsocaterstotheclientsongoingchangesduringtheprojectlifecycle.EPCsystemisdesignedfor
plantconstruction.Plantdesignisitsstrength.EPCintegratesthedisciplinesspecialities.Comparingtothebuildingand
civillines,thoughthereareM&Eworksinvolved,civil,nevertheless,istakingtheleadandtheprojectisthecenter.All
resourcesareundertheprojectandrevenueisalsogeneratedfromtheproject.OnthedownsideofEPS,informationin
anEPCcompanymaybefragmentedamongdisciplinesanddepartments.Theprojectisnotabletogotodetailonall
thedisciplines.Itreliesheavilyondisciplinesandotherdepartmentstosupportitsoperation.Therefore,communication
amongtheproject,disciplinesanddepartmentsareveryimportant.

WORKFLOW
ThefollowingchartillustratestheoverallworkflowofanoilandgasEPCcompany.

FEEDSTAGE
Refertothefirstitemofthechartabove.FrontEndEngineeringDesign(FEED)study,thatis,basicengineeringdesign,
isoneoftheEPCfeatures.Thecontentscanbeillustratedasthefollowingchart.

COMPANYWISEDPROJECTMANAGEMENT
AnISOcertifiedoperationmanualandcompanywisedWBShavebeenestablished.TheWBSisfunctionalbasedand
comprehensive.Itcoversprojectmanagement,basicengineering,detailedengineering,commissioningandoperation.
ThethreelayeredWBSgivesdetailsofprocurementandalldisciplinesprofessionalservices.Thestandardhaslaida
goodfoundationforotheraspectsofwork,suchasdrawingnumbering,manhourrecordingandprogrammebreakdown
items.

SinceEPCoperationisinterdisciplines,PrimaveraProjectManagementEnterpriseversion(P3e)seemsmoresuitable
tothecompanywisedprojectmanagement(P3instead,isprojectbased,reflectsthebuildingandcivilcontractingwork
operation).Inreality,applicationofP3eorP6isfarfromsatisfactory.Inmostcases,itiscontractdrivenand
requirementsoftheclient.Toimplementcompanywisedprojectmanagement,somerefinementofworkflowand
informationreorganisationandintegrationwillbeinvolved.Thisisnotjustusingthesoftwareandonlyafewpeopleor
justtheplannercandealwith.

PROGRESSMEASUREMENT
Engineering:bymanhourspent,volumeofdocumentdeliverables
Procurement:bymonetaryvalueofequipmentandbulkmaterial(example,pipes).
PO(30%)anddelivery(70%).
Construction:byquantity.Forexample,pipingbydiameterinch(diain).Steelstructureinstallationbyton.

SECURITYANDSAFETY
SecuritytotheJurongIslandishigh.Youneedtogetsponsor(client)approval,takesafetycourseandthengetanentry
passtoJurongIsland.ItislikecrossingthecausewaytoMalaysia.Armedforcesguardtheentranceandpatrolthe
island.Toentertheplant,youhavetotakeanthersafetycourseandgetaplantpass.Ontopofthehelmetandsafety
bootwhicharestandardpersonalprotectionequipment(PPE)onaconstructionsite,youneedtoputonluminous
uniform,gogglesandharnessifclimbingtoscaffold.

LOGISTIC
SinceallpetrochemicalplantsareonJurongIslandandtheJuringEastisthegatewaytothetown,itsnosurprising
thatalmostalloilrelatedcompaniesofficesarelocatedintheInternationalBusinessPark(IBP),justfiveminutesdrive
awayfromtheJurongEastMRT.ThereisfeederbusserviceplyingbetweentheJurongEastMRTandIBP.

MAJOREPCPLAYERS

CH2MHill(USA).http://www.ch2m.com
FosterWheeler(USA).http://www.fwc.com
Jacobs(USA).http://www.jacobs.com
JGC(Japan).http://www.jgc.co.jp/en/index.html
McConnellDowell(Australia).http://www.mcconnelldowell.com
MitsuiEngineeringandShipbuilding(Japan).http://www.mes.co.jp/english/index.html
m+wzander(Germany).http://www.mwzander.com
RotaryEngineeringLimited(Singapore).http://www.rotaryeng.com.sg

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