EPCM Project Implementation method

4ePCMTM - Interactive Project Management

Project implementation method

• Selecting the right implementation

method is crucial to meet cost and
schedule targets of the project

• Regardless of the implementation

method same work has to be done

• Selection of the implementation

method determines the roles,
responsibilities and liabilities of the
project parties in performing,
supervising and approving
• Common language, standard
• Interactive work is a necessity to scope definitions, transparency
reduce the investment costs and clarity are needed

February, 2009
2 4ePCM presentation
Different implementation methods

OB = Open Book
ESS = Extended Scope of Supply
EPS = Engineering -Procurement -Supply
EPCM = Engineering -Procurement -Construction Management
EPC = Engineering -Procurement -Construction
BOO = Build -Own -Operate
BOOT = Build -Own -Operate -Transfer
BOT = Build -Own -Transfer
DB = Design -Build
DBO = Design -Build -Operate
DBFO = Design -Build -Finance -Operate
FBO = Finance -Build -Operate
FBOM = Finance -Build -Operate -Maintain
…….

February, 2009
3 4ePCM presentation
Questions to be clarified

Roles of the engineering company / client

• in performing
• in supervising
• in approving / signing

Responsibilities
• who will perform / which job

Liabilities
• who bears the consequences for
– budget overrun / underrun
– time schedule overrun / underrun
– design workability in practice
– suppliers’ and contractors’ performance / non-performance
– contract terms such as payments, warranties etc
– health, safety, environment
– permits

February, 2009
4 4ePCM presentation
 Project lifecycle and EPCM

Business Investment Final Take-over

idea proposal go-ahead date

Development Implementation Production

Product and Feasibility Pre- Basic

Market analysis study engineering engineering

Engineering

Procurement

Construction

Commissioning

Start-up

Operational
Preparation for production
excellence
Back

February, 2009
5 4ePCM presentation
4ePCMTM concept
4ePCMTM – in nutshell
Customer-oriented interactive project management procedure

• Pöyry has collected its cumulative

project execution experience and
best practices into a unique
4ePCMTM concept

• Use four-level database build

around sets of
– Functions
– Processes
– Tasks
• 4ePCMTM brings
– structure
– Deliverables
– clarity
– efficiency
• By using 4ePCMTM
Scope of – transparency
Services definitions are transparent to any project and it is designed
and clear and can be assigned to a especially for the implementation of
specific party. EPCM projects

February, 2009
7 4ePCM presentation
4ePCMTM The Idea – From marketing to implementation
Owner Interface

Presentation of Discussion and Technical and Contract Assure

4ePCMTM Process Interactive Commercial and all targets are
Meeting Proposal Appendices achieved

Project basic Request for Proposal Scope further Contract Project

info Proposal presented defined signed Closure

Marketing Sales Proposal Negotiations Implementation

Future Concrete Project Proposal Updating and Final Implementation by

developments • Functions • Scope of Work scope definition
4ePCMTM
• Functions • Processes • Scope of Services • Functions
Process
• Processes • Tasks • Organization • Processes
• Deliverables • Time Schedule • Tasks
• Key Tasks • Deliverables
• Job Descriptions
• key deliverables
• Price
• Travel Charges
PÖYRY Interface • Reimbursables
• CV’s
• References
February, 2009
8 4ePCM presentation
4ePCMTM– Project flow

MAIN PROJECT FUNCTIONS Implementation

PROJECT SUPERVISION These main Functions

cover the whole sphere
of responsibilities
PROJECT MANAGEMENT (EPCM) required in any project–
irrespective of who
ENGINEERING MANAGEMENT does them.

PROCUREMENT MANAGEMENT

CONSTRUCTION MANAGEMENT

COMMISSIONING MANAGEMENT

PREPARATION FOR
PROJECT CONTROL
OPERATION
HEALTH, SAFETY AND
QUALITY ASSURANCE
ENVIRONMENT
SECURITY MANAGEMENT PERMITTING ASSISTANCE

February, 2009
9 4ePCM presentation
4ePCMTM– Integration of Knowledge
example: Engineering Management
FUNCTIONS
MAIN PROJECT FUNCTIONS
PROCESSES
PROJECT SUPERVISION

PROJECT MANAGEMENT (EPCM)

ENGINEERING MANAGEMENT

PROCUREMENT MANAGEMENT
TASKS
CONSTRUCTION MANAGEMENT

COMMISSIONING MANAGEMENT

PREPARATION FOR
PROJECT CONTROL
OPERATION
HEALTH, SAFETY AND
QUALITY ASSURANCE
ENVIRONMENT
SECURITY MANAGEMENT PERMITTING ASSISTANCE

DELIVERABLES

February, 2009
10 4ePCM presentation
4ePCMTM– Integration of Knowledge
Example: Procurement Management
FUNCTIONS
MAIN PROJECT FUNCTIONS

PROJECT SUPERVISION
PROCESSES
PROJECT MANAGEMENT (EPCM)

ENGINEERING MANAGEMENT

PROCUREMENT MANAGEMENT

CONSTRUCTION MANAGEMENT TASKS

COMMISSIONING MANAGEMENT

PREPARATION FOR
PROJECT CONTROL
OPERATION
QUALITY ASSURANCE
HEALTH, SAFETY AND DELIVERABLES
ENVIRONMENT
SECURITY MANAGEMENT PERMITTING ASSISTANCE

February, 2009
11 4ePCM presentation
4ePCMTM– Integration of Knowledge
Example: Construction Management
FUNCTIONS
MAIN PROJECT FUNCTIONS
PROCESSES
PROJECT SUPERVISION

PROJECT MANAGEMENT (EPCM)

ENGINEERING MANAGEMENT

PROCUREMENT MANAGEMENT
TASKS
CONSTRUCTION MANAGEMENT

COMMISSIONING MANAGEMENT

PREPARATION FOR
PROJECT CONTROL
OPERATION
HEALTH, SAFETY AND
QUALITY ASSURANCE
ENVIRONMENT
SECURITY MANAGEMENT PERMITTING ASSISTANCE

DELIVERABLES

February, 2009
12 4ePCM presentation
4ePCMTM– the Four levels of electronic database

Standard text
12 Functions for Scope of
Services

Standard text
60 Processes for Scope of
Services

Standard text
300 Tasks for Scope of
Services

1000 Deliverables

February, 2009
13 4ePCM presentation
4ePCMTM– Integration of Knowledge

Pöyry Supervisor Project Owner

Project Staff Mill / Plant Staff

EPCM

Project Management

Preparation for
Mill / Plant Operation
Security Quality
Management Management

Health, Safety and Permitting and

Environment approval Assistance

Project Control Engineering Management Procurement Management Construction Management Commissioning Management

12 Functions 60 Processes 300 Tasks 1000 Deliverables

February, 2009
14 4ePCM presentation
Why 4ePCMTM ?

• Clarity, predictability and control

• Integrated processes and methods

throughout the project

• Detailed service scope definition

• Project guidelines development

• Transparent alignment of project

scope and expectations between
project parties • “One-stop-shopping”

• Faster project implementation by • Ready-to-use templates and tools

minimising the lead times of the
various project phases

February, 2009
15 4ePCM presentation
4ePCMTM related unique productus
for critical project services

February, 2009
16 4ePCM presentation
 Pöyry offers effective Engineering, Procurement and Construction
Management service for Chemical Process Industry
using its proprietary 4ePCMTM concept

February, 2009
17 4ePCM presentation