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Engineering Management

Presented by
Mr. Nguyen Anh Dung
Dr. Tran Anh Kim
Subject of the presentation
Introduce process to implement an engineering Project.
Introduce tools to manage engineering Project.
Interface Management.
Changes Management.
1. Engineering stages
Conceptual Studies/ Front End Engineering Design (FEED)/
Basic Engineering.
Detail Engineering.
1. Engineering stages
Conceptual Studies/ FEED/ BE:
Subsurface Basic of Design with output are:

Number of wells;
Wells performance: flowrate; pressure

D&C (Drilling & Completion) CAPEX

assumption base on the market survey.
Key design parameters/ Product
Process Configuration;
Concept Selections (Options & analyses);
High level schedule analysis;
Estimation Summary / Comparison of
CAPEX/ OPEX for all Options.
Concept Selection: 01 Concept
1. Engineering stages
Influence of Concept Design/ FEED/BE is very high while
expenditure is low => need to engage capable
Engineering house/ expert.
2. Detail Engineering Execution
Major Activities from Bidding until Completion.
Engineering Management System.
Question/ Answer.
2.1. Bidding Stage
Input data for Bid is Engineering
Develop further Detail Engineering for Bid
deliverables at BE stage which is if the ITB does not detail enough;
provided by Client along with ITB. Clarify the ITB; provide qualification/
Major Engineering Activities for Bid: exception;
Endorse the Engineering Deliverables
Generate the Procurement packages;
provided along with ITB (if required by
Procurement support: RFQ, TC, TBE
to support for cost estimation;
Optimise the design during Bidding if
Study Project specifications to highlight
the special requirement which are
containing RISK, cost/ schedule
incurring possibility;
Prepare the Engineering Proposal
including Contract strategy; execution
plan; Subcontract (if needed) and CTR
in accordingly.
2.1. Bidding Stage/ Wrap-up
The engineering works for competitive Bidding of EPC/
EPCI Project is very much and required to be completed
during short period;
Need to have a good Procurement database;
Need to have senior engineers involvement;
Strong PMT team for Bid to make clear split scope of
work/ identify interface/ RISK and having good
clarification/ qualification/ exception & contract
2.2. Engineering Execution
1. Contract Technical Review (CTR): 2. Engineering Execution Plan key
Refer to BDC-04-TK-Contractual Technical management tools:
Review whichs containing check list Project schedule;
Organisation chart;
Scope of work;
Package Engineer Matrix;
Endorsement requirement?

Mob/ Demob plan;
All Disciplines Contract technical review

check list.

Communication procedure (workflow;
document management/ exchange; EDMS);

CTR reports: findings; list of reviewed
Interface/ change management procedure;
docs; punch list, screening technical/
Quality control.
economic risk, decision to close;
recommendation for outstanding punch
list; execution for close out and 3. Question: HOW TO DEVELOP AND MANAGE
monitoring. ABOVE TOOLS?
2.2. Engineering Execution
Project schedule: Communication Procedure:
CD => T&I => Construction => Contract requirement;
Procurement => ENGINEERING. Engineering management system

Procurement Plan; key milestone (1 st cut; (EDMS?);

MCD) Work location;

Engineering Key milestones: Interface requirement.

Endorsement; KO meeting; P&ID issuance; Interface Management Procedure (external):

HAZID; HAZOP; SIL; 30%; 60%; 90% Model 90% engineering relevant.
review; AFC for Structure Steel; Plot plan; Contract requirement;
Isometric drawings; All AFC Company system;
Organisation chart & Mob./Demob. plan
Number of interface parties.
Scope of work/ Contract requirement;

Project schedule;
Interface Management Procedure (internal):
following the PTSC M&C typical Procedure.
CTRs (from SOW);

Package Engineer Matrix.

Design change management: flowing PTSC
M&C procedure BDC-10-TK_Management of
MDR (Master Document Register): Design Changes
Engineering scope of work
2.2. Engineering Execution
4. Quality Management 5. Manage the CTR/ Project schedule
Quality Control including a set Engineering Engineering manager/ Project engineer
procedures/ work instruction of shall responsible to record man-hours are
Engineering Department; burned for Project to ensure that it is
Engineering Department shall responsible within the Budgetary. If the man-hour are
to arrange the audit an executing expanded more than budgetary, EM/
engineering Project of Company to ensure Project Engineer should identify the reason
that it is implementing in accordance with and propose a correction plan i.e. change
Company system; the norm, claim impact from other
KPI: should be specific for a engineering department or Client
Project base on the KPI are developed by All the time during Project execution, the
Company. At the end of Project, Project EM/ Project Engineer need to monitor
engineer shall responsible to collect all KPI Engineering Progress and have catch-up
including supporting document for review plan if any delay. If delay caused by other
and approval. department/ Client, Project team need to
have proper expediting and recording for
claiming cost/ schedule impact.
All delay need to be recorded in the
2.2. Engineering Execution
6. EDMS (Engineering Design Management S 7. Others Register for Engineering Work
ystem) PDMS Modeling Register
A secure workspace for managing, storage, (implementation/review)
organizing, look up, etc. various types of Interface checking
project documents. Instrument/Piping/Process/Mechanical/Struc
Document review/comment among tural Register
interested parties via customized Work- Isometric overall check list
flows Hold register
A common workspace to track, audit, KDCN register
update, expedite and control document TQ register
development activities.
Weight Control register
A secure workspace which supports
management documents of multiple project
Interface register
at once.
A secure workspace which enable data
integrity, safety and provide levels of
control exchanging documents both
internally or externally.
2.2. Wrap-up
Project managers should understand overall engineering
execution processing and management tools especially
the red highlighted;
Area of concern need to be regularly updated and
3. Design Change Management
Principle 1: Major changes which are impact to multi disciplines must be
managed at appropriate time.
Principle 2: Document which are required be reviewed by multi-disciplines
are critical.
Change on critical document before AFC stage:
Project design basic, philosophy, specifications;

P&ID after IFA (after incorporation change from HAZOP);

Equipment layout;

Primary steel.

Change on document post AFC and impact to other discipline has to be

managed by DCN.
Change Vendor data after be approved to proceed with Construction.
3. Change Management Tools
KDCN (Key Design Change Note): Change from Clients Instruction is to be
applied for major change which are managed by Project Change Control
impact to multi-discipline; Procedure;
KDCN Register: to monitor the Change interface data from Others
implementation of Change until the Contractor is to be managed by
change are incorporated into the Interface manager and consider to add-
on KDCN if applicable;
Change from the Construction team
Other tool to support for change
(change construction method/ sequence:
management: Interface manager/ Department

PDMS modeling check list/ register; manager need to identify the internal

Piping/ Instrument interface check list; interface and highlight to relevant team

Hold register. at appropriate time.
3. Wrap-up
Change management is Major Subject of any Project
Management. Manage the change is a difficult work and
even though it is well managed but nobody/ no system
can ensure that all change are predicted & managed.
All relevant parties MUST follow change management
All disciplines has to aware what will impact to other

discipline from their change and highlight to relevant

4. Interface Management
External Interface: Among COMPANYs Contractors i.e. T&I CTR with EPC
Contract; FPSO CTR; Drilling CTR; Subsea CTR
Internal Interface:
Interface with Subcontractors/ Among Subcontractors/ Suppliers: HUC &

T&I; Loadout Subctr & TnI Subctr; Interface packages

Internal interface among department (Engineering/ Procurement/

Construction): should be considered as coordination procedure which

is using PTSC M&C typical management procedures.
4. Interface Management
Internal Interface Management
External Interface Management
Internal IM among CTR/ Subctrs and Subctr v.s.
External Interface: 90% related to Subctr:
Engineering/ Construction Engineering
Loadout CTR v.s T&I CTR;
work => should be managed by
Engineering CTR v.s. T&I CTR;
Engineering manager or who should have T&I CTR v.s. HUC CTR;
Engineering Knowledge. Management tools:

Number of interfaces/ type of interface are not
Management tools (be specified by
big => should be managed by an interface
Client) register for each interface group;

Interface split scope of work matrix;
Document exchange: need to set-up a document

Interface task register; exchange flow through DCC to ensure that all
latest interface document shall be distributed to

Interface task sheets. related interface parties;
Should use the E-room to record all
Give interface parties a right to the comment (if
interface task. any) with the same time frame of direct
reviewers/ approvers;

Having regular interface meeting to discuss and
monitor interface issue.
4. Wrap-up
Interface manager must have engineering knowledge;
fully understands about the Contract, Project schedule
and critical chain related to interface task; be decision
maker for interface task are not specified in the Contract.
Engineering Manager should be Interface Manager for
medium Projects (i.e. WHP, FPSO Modules). But the
separate Interface manager should be required for Mega
Project (CPP, TLP).
Summary of Training
List important points from each lesson?