Project Management - PD Flashcards
1
Q
How do the definitions of the terms ‘strategy’ and ‘plan’ differ?
A
Strategy - A description in broad, non-specific terms, of how project goals and objectives will be realised; the framework for lower-level plans
(General)
Plan - A description of what has to be done to implement a strategy successfully, including specific activities, timing and resources (i.e. who does what, when and where)
(Specific)
2
Q
What are the typical stages to a project?
Stage gate process
A
- Create
- Assess
- Select
- Define
- Execute
3
Q
What occurs in the different stages of a project?
A
- Create
• Confirm the project goal(s)
• Frame the project
• Develop a realistic (unoptimized) project delivery strategy
• Develop a business case that is sufficiently attractive to gain funding - Assess
•List the project ‘givens’ and challenge them
• Define the strategic approach to focus areas that must be addressed early;
• Access data for a basis of design
• Gather contractor market intelligence to confirm the project’s do-ability
• Analyse potential show-stoppers
• Confirm the business case is still attractive - Select
• Select the optimum project solution from initially a long list, and then a short list of options
• Develop cost and schedule estimates for each short-listed option and analyse the economics (business case) for each
• Develop a suitable operations and maintenance philosophy
• Freeze the basis of design
• Summarize this in a concept selection report
• Hold a contracting strategy workshop - Define
• Develop the design of the selected option to a level suitable for tendering to execution contractors
• Tender the work and select an execution contractor(s)
• Apply for and receive the necessary permits and consents
• Prepare detailed cost estimates
• Confirm the business case based on a detailed cost estimate is suitable for sanction - Execute
• Execute the work to deliver an operational system
• Achieve final acceptance and transfer of accountability from project to operations - Operate
4
Q
What are the main parts of a project stage workflow?
A
Understand Plan Do Consolidate Plan Decide
5
Q
What is front end loading?
A
It is the process for conceptual development of projects.
Front-end loading includes robust planning and design early in a project’s lifecycle (i.e., the front end of a project), at a time when the ability to influence changes in design is relatively high and the cost to make those changes is relatively low.
(Aka pre-project planning (PPP), front-end engineering design (FEED), feasibility analysis, conceptual planning, programming/schematic design and early project planning)
6
Q
What’s the role of the Project Controls department in a project team?
A
Project Controls encompass the people, processes and tools used to estimate, plan, manage and mitigate cost and schedule issues and any risk events that may impact a project, and to provide progress reports and forecasts for use by management.
Disciplines include: • Cost estimation • Planning (and scheduling) • Cost engineering • Performance management (incl. earned value management) • (Risk management) • (Value management) • (ICT Management incl. document control)
7
Q
Why do we need a cost estimate?
A
So we can run economics to prove that we’ll meet economic thresholds and provide the initial case for the project, and to provide the case for continuing with, and then approving the project
To provide a baseline against which we can measure our performance
8
Q
What information should we include in the ‘Basis of Cost Estimate’ for a project?
A
The ‘Basis of Cost Estimate’ should address:
- The purpose of the estimate
- A description of the project and its context (project scope, market details, location etc.)
- The project schedule
- The scope of the estimate (what is and what is not included in the estimate)
- The assumptions, data sources, estimating methodology and rationale
9
Q
What are the (3) types of cost estimate?
A
Parametric
Deterministic
Probabilistic
10
Q
What are parametric cost estimates?
A
Parametric estimating compares cost and schedule data associated with the current project with those of historical data from similar past projects in terms of the overall cost and schedule and of the individual elements within the scope
It clearly requires some knowledge of the current project in terms of its basis of design
11
Q
What are deterministic cost estimates?
A
The term “deterministic” implies that the cost contingency is determined as a single point estimate, typically as a percentage of the base cost estimate. Deterministic techniques assume that no uncertainty exists.
First principles assessment of cost based on project
quantification of scope (MTOs) multiplied by labour norms
Traditionally only undertaken by contractors post-FEED
12
Q
What are probabilistic cost estimates?
A
An estimate using a range of numbers with associated probabilities of occurrence for each of the components or, at least, for each of the components that have substantive certainty.
A probabilistic cost estimate is generally a requirement for project sanction at the end of Define (although also often required to be used at the end of Select).
13
Q
What does estimate accuracy show?
A
Accuracy (the shape of the probability curve) is primarily driven by:
• The nature of the project (its uniqueness and complexity)
• The quality of reference cost estimating data (certainty associated with the factors used to adjust for market
conditions, project location, environmental considerations etc.)
Estimate accuracy is traditionally represented as a +/- range around a point estimate with a stated confidence level that the actual outcome will fall within this range.
14
Q
What is the base cost estimate?
A
The Base Cost Estimate is the deterministic cost estimate including costs for defined scope, normal estimating allowances and growth allowances, but excludes contingency and any future
inflation or escalation.
It reflects the contracting and procurement strategy, the overall project strategy and the resource-loaded project schedule.
It must represent the project lifecycle in its entirety (through to decommissioning), so includes CAPEX (facilities and infrastructure costs), DRILLEX (cost of wells, drilling and completions), OWNEX (owner’s costs) and DEMEX (decommissioning costs).
15
Q
What is the master cost estimate?
A
The Master Cost Estimate is the Base Cost Estimate plus contingency and any future inflation, escalation or commercial adjustment required to represent the final out-turn capital cost of the project.
Contingency is included in the Master Cost Estimate to provide for the quantified risks at the agreed confidence level. It is not an allowance for scope changes.
16
Q
What is the contingency for sanction cost estimate?
A
Contingency is the difference between the base cost estimate and the cost determined by probabilistic analysis.
For the cost estimate used to sanction the project, the contingency assumed is the difference between the Base Cost Estimate and the cost determined by probabilistic analysis at the confidence level specified by the company (e.g. P50 or P70).
17
Q
What does planning entail?
A
Breaking down work into packages
Identifying dependencies between work packages
Identifying resources required
Allocating available resources
Estimating required time and cost
18
Q
What does WBS stand for?
A
Work breakdown structure
19
Q
What is a work breakdown structure?
WBS
A
A work breakdown structure (WBS) is used to break down the total work scope into manageable sections.
Each section is then further broken down into sub-deliverables and these sub-deliverables are again broken down still further to a level where a task can be assigned to a specific individual (or group of individuals).
These ‘work packages’ together represent all the activities and resources required to complete the project; each work package is assigned an appropriate number of man-hours and an associated cost.
The WBS is therefore a ‘map’ of all the activities and resources required to complete the project.
20
Q
Why use a WBS (work breakdown structure)?
A
Allocating time and resources and the associated costs to specific sections of the WBS facilitates the development of a project schedule and budget.
As the project is executed, individual sections of the WBS can be tracked to identify their schedule performance and to identify issues and problem areas in the project organization.
21
Q
How is a schedule developed?
A
- Define the project scope
- Break the scope down into activities
- Group the activities into ‘packages’ until an appropriate level for control purposes is reached (Work Breakdown Structure – WBS)
- Apply logic between activities to reflect dependencies, e.g. activity ‘b’ cannot start until activity ‘a’ is complete
- Assign durations and resources to activities
- Identify logical end points (such as milestones or deliverables)
22
Q
What does the critical path method do?
A
It is used to determine the longest path of planned activities to logical end points (or to the end of the project), and the earliest and latest that each activity can start and finish without making the project longer.
This process determines which activities are “critical” (i.e., on the longest path) and those which have “total float” (i.e., can be delayed without making the project longer)
A critical path is the sequence of activities in a schedule which add up to the longest overall duration, regardless if that longest duration has float or not
This determines the shortest time possible to complete the project.
23
Q
What are the (4) types of schedule?
A
Overall project schedule - The overarching high-level schedule for the entire project, used in the Project Strategy Document
Stage schedule - The schedule for the work undertaken by the PMT (project management team) for a specific stage (e.g. Define Stage Schedule)
Integrated schedule - A schedule incorporating the company’s stage schedule and the contractors’ execution schedules
CRSA schedule - Cost and schedule risk analysis schedule (used in probabilistic analysis)
24
Q
What does FID stand for?
A
Final Investment Decision
25
What does contingency mean?
A future event or circumstance which is possible but cannot be predicted with certainty.
26
What does PMT stand for?
Project management team
27
What is the role of a cost engineer in a project?
1. Establishing budgets and developing AFEs (approval for expenditure) (Funding)
2. Budget Management
3. Managing Contingency Drawdowns
4. Cost Forecasting
5. Providing input into Change Control
6. Cost Reporting
28
What are the tasks of a cost engineer regarding funding and establishing budgets?
The Cost Engineer:
* Provides input towards establishing the Work Breakdown Structure (WBS)
* Establishes the budget for each WBS element
* Develops the overall budget (sum of budgets for WBS elements plus contingency)
* Prepares AFE submissions
29
What are the tasks of a cost engineer regarding budget management?
The Cost Engineer:
* Establishes the Cost Breakdown Structure (CBS) and coding
* Sets budgets and time-phases them based on the schedule
* Monitors:
- Commitments
- Cashflow (invoice payments and receipts)
- Cost and value of work done – planned, actual and forecast
• Produces monthly cash calls identifying anticipated
disbursements (the amount of money to be paid out both internally and externally)
30
What is a cost breakdown structure (CBS) for?
A Cost Breakdown Structure:
Allocates costs to elements of work at the lowest level of the WBS (work breakdown structure).
Provides a breakdown of the costs, including all works or services done by subcontractors.
It is used (on an on-going basis) to compare the actual costs with the budget and hence assist with cost control.
31
What does AFE stand for?
Approval For Expenditure
32
What is a drawdown?
A drawdown refers to how much an investment or trading account is down from the peak before it recovers back to the peak.
33
What does AC stand for?
What is it?
Actual cost
AC (also know as Actual Cost of Work Performed or Value of Work Done) is the value of goods and services progressed, regardless of whether or not they have been paid for or received.
The primary purpose of determining AC is to get an accurate and comprehensive as possible estimate of cost for a project at a point in time.
34
What is cost forecasting?
Forecasting in accounting refers to the process of using current and historic cost data to predict future costs.
* The forecast is the Actual Cost (AC) plus the estimate to complete (ETC)
* The forecast is based on input from work package (WBS element) owners and incorporates trends
* Variance analysis explains deviations between forecasts and agreed budgets
35
What must a project cost engineer do?
* Provide timely cost management data, including:
* Budgets, changes, forecasts, trends, commitments and costs
* Periodic (in-month) and cumulative to-date information
* Highlight and explain variances
• Include cost phasing over time (S-curves, line and bar charts)
allowing systemic issues to be identified
• Maintain and provide up-to-date registers, including commitment logs, invoice logs, change logs, trend logs, contingency drawdown logs
36
What is a risk?
How
A risk is an uncertain event that may affect a project’s objectives.
Risks may affect the project objectives negatively (threats) or positively (opportunities).
They are defined by considering the root cause, risk, and effect.
37
How do we describe a risk?
In terms of:
Cause: "As a result of…..”
Risk: “This uncertain event may happen"
Effect: “Which would result in (HSE, cost,
schedule, reputation)"
38
What is a risk response action plan?
A risk response action plan describes the actions used to mitigate the root cause of a threat (or to enhance an opportunity).
39
How is a risk score calculated? (regarding risk assessments)
Risk score = likelihood score * highest impact score
40
What are the risk register headings?
1. Risk number
2. Cause
3. Risk
4. Effect
5. Risk score
6. Risk response action plan (with action owners and
timings)
41
Why do risk management?
* It creates opportunities to improve (or at least preserve) the value of a project.
* It protects the project team (and particularly the project manager), by keeping the alligators at bay.
* It provides important information for those conducting probabilistic cost and schedule analyses.
42
What is value management?
The systematic processes followed to review different aspects of a project to ensure that the project is
configured to achieve its goals and objectives in an optimal way.
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Activities include:
• Framing workshops (Assess and Select stages)
• Peer Assists
• Peer Reviews
• Value Improving Process workshops
• Lessons workshops (review and capture)
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43
What is involved in project framing?
• Scope
What’s in scope and out of scope?
• ‘Givens’
Facts, assumptions, decisions already made (justification for the ‘given’, implications of changing the ‘given’)
• Strategic Approaches / Strategic Decisions
The focus areas that must be addressed early in the project because of the significant influence that they have on the overall approach to the project, including any show-stoppers
• Tactical Approaches
Areas of secondary importance, supporting decisions or items that can be addressed later
44
What are project goals and project objectives?
Project goals: a list if things we want to achieve with the project - around which the project strategies and plans can be developed.
Project objectives: A list of S.M.A.R.T milestones on the way to achieving the project goals, the achievement of which will be a measure of project success.
45
What does S.M.A.R.T stand for?
Specific (simple, sensible, significant).
Measurable (meaningful, motivating).
Achievable (agreed, attainable).
Relevant (reasonable, realistic and resourced, results-based).
Time bound (time-based, time limited, time/cost limited, timely, time-sensitive).
46
What are peer assists?
Activities where experienced or external professionals with appropriate expertise provide knowledge or insights that improve, challenge, and verify work in progress.
47
What is a peer review?
The use of expert discipline resources independent of the project to verify that a finished piece of work meets its agreed specification or will fulfil its intended purpose, thereby helping the project team to understand and improve the quality of its work.
48
What are value improving processes?
VIPs are formal reviews and analytical processes that have been shown to improve the chances of a successful project outcome.
49
What are lessons review and lessons capture workshops?
Lessons Review Workshops - formalised Peer Assists used to enhance the value of a project’s strategies and plans. The ‘expert’ (i.e. the one who had the experience) may or may not be present in person.
Lessons Capture Workshops - formalised Peer Assists for future projects. Representatives of the future project team are likely not to be present.
50
What information should you provide to a contractor prior to starting a project?
* A scope of work
* A specification and/or functional specification
* A basis of design
* A list of codes and standards to be applied
* An operations and maintenance philosophy (and possibly other design philosophies)
51
What is the scope of work, SOW?
A Contract Scope of Work (SOW) describes the work to be performed under the contract.
The SOW must be defined clearly to avoid any ambiguity, and should list any milestones, reports, deliverables, and end products that are expected to be provided by the performing party.
The SOW should also contain a time-line for all deliverables.
52
What is a functional specification?
A ‘specification’ is a detailed description of the design and materials used to make a product. A specification tends to be precise and, where appropriate, quantitative.
A ‘functional specification’ describes the critical requirements and features of a product (i.e. what you want the product to do, how you want it to perform and/or what you want it to look like).
53
What is the basis of design, BoD?
* A basis of design provides a set of verifiable project specific design data to be used in the design of the product.
* A Basis of Design (BoD) document containing all relevant design data should be established as early as possible in a project (from Create onwards)
* Only one BoD should be developed for each development opportunity (not a proliferation of separate ones).
* The BoD should be structured so as to prevent data repetition between BoD sections.
* The BoD will be the single and reliable information source for the life of the project, from Create to Operate.
54
What are codes?
“Codes” are generally the top-tier documents, providing a set of rules that specify the minimum acceptable level of safety for manufactured, fabricated or constructed goods.
Codes may incorporate regulatory requirements and will often refer to standards or specifications for specific details on additional requirements not specified in the Code itself.
55
What are standards?
“Standards” are documents that establish engineering or technical requirements for products, practices, methods or operations, which have been established by consensus and approved by a recognized body.
Standards facilitate international trade by ensuring compatibility and interoperability of components, products and services.
Standards bring benefits to businesses and consumers in terms of reducing costs, enhancing performance and improving safety.
56
How do standards and codes differ?
A code is a model, a set of rules that knowledgeable people recommend for others to follow. It is not a law, but can be adopted into law.
A standard tends be a more detailed elaboration, the nuts and bolts of meeting a code.
57
What is a design philosophy?
It describes the objectives and performance criteria for that particular area of design, and relates to a specific discipline.
Consideration should be given to determining which design philosophies should be in place during the Select stage, as the requirements of certain design philosophies could influence the selection of a development option (e.g. the Operations & Maintenance Philosophy)
58
Why should we manage change?
* To be an improvement over the old, the new arrangements must be stable, safe and effective
* Full consideration must be given to each and every aspect of the change (including the transition from the old to the new)
* The considerations must be formally demonstrated and recorded, and the implementation of the change must be carefully managed
59
What are the principles of change management?
* A proposed change must be communicated to those affected by it
* Those affected must understand the impact of the change, not only from their perspective, but also from the perspective of those others affected
* Change management therefore requires use of a consistent and rigorous procedure that includes:
- Multi-disciplinary and multi-functional reviews
- Appropriate levels of approval
- Control of the work to implement the change
60
Why are changes made?
Changes are made to improve something that has
formally been declared ‘frozen’.
To make a change, something ‘frozen’ needs to be rearranged.
61
What is FEED?
FEED (Front End Engineering Design) means Basic Engineering which is conducted after completion of Conceptual Design or Feasibility Study.
At this stage, before start of EPC (Engineering, Procurement and Construction), various studies take place to figure out technical issues and estimate rough investment cost.
62
What are the types of project interfaces?
Hard (i.e. physical interfaces with dimensions, geographical positions and orientations)
Soft (i.e. work processes that rely on the co-ordination of two or more stakeholders
These can be
- External (an interface between two or more stakeholders
- Internal (an interface within the scope of an individual stakeholder)
63
Who are project permits and consents required for?
* Local government
* Regional government
* National government agencies
* International agencies
* Landowners
* Others that have legal rights that may influence the work
Each body may require several permits or consents and each may need to be applied for independently of each other and at different stages of the project (throughout the entire project cycle).
The early appointment of experienced resources is fundamental to making a full assessment of the permits and consents required.
It is important to identify the necessary permits, the implications of these, prepare, and incorporate into project planning at every project stage.
64
What should ICT (Information and Communications Technology) management consider?
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The ICT Strategy should be the home of:
• Document management
• Storage and retrieval
• Document numbering
• Methodology for review and approval / return of collated
comments back to the contractor
• Security
• PMT communications infrastructure – between multiple sites and with the centre (e.g. links to company intranet)
• Formal communication protocol (authorities and partners)
• Email communication protocol
• Hardware and software requirements
• IT support
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65
What are the objectives of market intelligence?
* To understand the ever-changing marketplace and communicate its impact
* To assess the context, opportunities and potential solutions when evaluating contracting strategy options
66
What is an ITT?
An invitation to tender (ITT, otherwise known as a call for bids or a request for tenders) is a formal, structured procedure for generating competing offers from different potential suppliers or contractors looking to obtain an award of business activity in works, supply, or service contracts.
67
What is tendering?
Expressions of interest, market surveys and pre-qualification exercises used to inform the contracting strategy workshops will result in a short-list of suitably qualified contractors.
To make a formal written offer to carry out work, supply goods, or buy land, shares, or another asset for a stated fixed price.
68
What is EPC contract type?
EPC (Engineering, Procurement & Construction)
This is the prominent form of contracting agreement in the energy industry.
The engineering and construction contractor will carry out the detailed engineering design, procure all the equipment and materials necessary, and then construct to deliver a functioning facility to their clients.
69
What is EPIC contract type?
EPIC (Engineering, Procurement, Installation & Commissioning)
Lump sum contract for the complete scope from conception to final acceptance of one or more (or all) elements of a production system.
70
What is the FEED contract type?
FEED (Front End Engineering Design)
The FEED is basic engineering, which is used as the basis for bidding Execute stage contracts (EPC, EPIC, etc.).
The more detailed the FEED, the less risk to both client and contractor, increasing confidence in costs. The FEED can be divided into separate packages.
71
What is the LSTK contract type?
LSTK (Lump Sum Turnkey)
This is a contractual agreement in which a fixed price is agreed for the execution of a project or part of a project. Once the final development is completed a finished functioning asset is handed over to the client.
72
What is example compensation types?
Lump sum - £/work scope
Unit rates - £/unit of work
Day rate / man-hour rate - £/man-day/hour
Cost reimbursable - £ paid to third parties + %
73
What must be considered for a lumpsum contract?
* Scope and specifications must be clear and unambiguous
* Contract price should not be higher than the contractor can undertake given their financial strength to execute their obligations
* Contractors must have sufficient competence to estimate work and associated risk, including design development, associated with an EPC contract to ensure a realistic contract price
* The complexity and size of a contract should not exceed a contractor’s competence and capacity
74
Why is successful pre-commissioning,
commissioning, start-up and handover
important?
Systems (and the equipment contained within these systems) that have not been properly pre-commissioned and commissioned will not achieve successful performance tests, delaying final facility acceptance and handover to operations.
Delays and breakdowns during start-up will cause the production ramp-up rate to be lower than promised at sanction, thereby damaging the business case economics and adversely affecting stock market credibility.
75
What’s meant by “commissioning”?
When declared SRFC (System Ready for Commissioning), commissioning activities are used to test the functional operability of a system in which as much equipment as possible is operated at near-design conditions, using benign fluids.
Once a system has been successfully commissioned, it is declared SRFSU (System Ready for Start-up).
76
What is meant by “completions
| management”?
Completions management is a process used to:
* Record and update in a database the witnessed checks and tests required at system level
* Provide visibility and reporting of progress by discipline, system, groups of systems and area
* Capture certification and test records suitable for final handover
A completions strategy should be developed in FEED, to be updated in Detailed Engineering.
The completions strategy should include a high level system definition and systems hierarchy. This high level system definition is used as the basis of a tender package for completion management services (specialist software, license fees and support).
77
What is Operations Assurance and Readiness?
Operations assurance and readiness (OAR) is a process used to ensure that facilities are operable at start-up and will have safe and sustainable operations through their lifecycle.
78
Why is Operations Assurance and Readiness (OAR) important?
Unless the principles by which the facility will be operated are agreed and established early in the project lifecycle and developed consistently through FEED and detailed design, the facilities will not perform in the safest and most cost effective way.
Rework during start-up to rectify design faults will cause the production ramp-up rate to be lower than promised at sanction, thereby damaging the business case economics and adversely affecting stock market credibility.
79
What are the 4 Operations Assurance and Readiness (OAR) essentials?
1. An O&M philosophy (this defines the principles by which the facility will be operated)
2. An OAR manager reporting to the project manager
3. A plan for the OAR deliverables
4. An OAR team with sufficient resources to produce the necessary OAR deliverables
80
During Assess and Select, the O&M philosophy should:
* Be common to all concept options
* Address the principles which impact concept decisions
The key is ensure that, before the concept selection process begins and a concept is selected, the principles of how the facilities will be operated and maintained are understood and agreed, such that the designs and costings may be adjusted accordingly.
81
During Define and Execute the detailed O&M philosophy should:
* Be concept-specific
* Address the principles which impact the design
* Address the principles required to develop the supporting philosophies, strategies and plans
The key is not to start the design until the principles of how the facility will be operated and maintained (e.g. isolation, purging, cleaning, mechanical handling, lifting) are understood and agreed , since such issues could significantly influence the design.
82
What should an operations and maintenance (O&M) philosophy not include?
• A technical description of the facilities
A technical description of the facilities should be included in the functional specifications
* Elements of the lower-level strategies, in particular the control narrative. A description of the control system logic should be included in the control system philosophy
* The scope of work of the OAR team
• Motherhood statements
Motherhood statements do not imply mandatory principles
83
What is QA?
Quality Assurance (QA) is what the supplier does to verify that the supplier’s systems and processes are suitable (i.e. that they’ll be able to meet the customer’s requirements).
84
What is QC?
Quality Control (QC) is what the supplier does to check and confirm that the customer’s specifications are being met.
85
What is quality surveillance?
Quality Surveillance is the continuing monitoring of all aspects of production processes that is a planned and scheduled manner without impeding product delivery.
The Quality Surveillance is based on performance and risk to maintain the efficiency and quality of the processes.
It is what the customer does to verify that the supplier’s quality control is working suitably.
86
What are criticality ratings?
* Assigned to each material requisition or equipment item
* Based on assessment of the operational, safety and environmental risks potentially resulting from materials or equipment failure
* Used to specify the level of QC (by suppliers) and Quality Surveillance (by the client/operator)
* Used to prioritise engineering activities during Define and Execute
87
What takes place at different inspection levels?
1. Pre-inspection meeting and full manufacturing surveillance from commencement of design or manufacture to final acceptance. Approved Inspection and Test Plan (ITP).
2. Pre-inspection meeting and periodic in-manufacturing surveillance activities based on hold/witness/review stages as specified in the ITP.
3. Pre-inspection meeting and limited in-manufacturing
surveillance based on hold/witness/review stages as specified in ITP (fewer than Level 2).
4. Pre-inspection meeting (possibly by teleconference) and final inspection visits prior to shipment. Intermediate surveillance only in exceptional circumstances.
88
What is a safety case?
A Safety Case is a structured argument, supported by evidence, intended to justify that a system is acceptably safe for a specific application in a specific operating environment.
89
What is the focus of a design safety case?
The focus of a Design Safety Case should be on demonstrating that:
* All major hazards have been identified
* Major hazard risks have been considered during concept selection
* FEED has adequately assessed and mitigated major hazard risks
* Design safety processes to be implemented during Execute will be capable of delivering tolerable risk during Operation of the facility
90
What is the definition of a hazard?
Something with the potential to cause harm to personnel or damage to the environment or the facility.
91
What is the definition of a major accident?
A fire, explosion or release of a dangerous
substance, or any other event connected with the operation of the facility, with the potential to result in multiple fatalities or serious injuries to the workforce or surrounding populations.
92
What is the definition of a major accident hazard?
A Hazard with the potential to result in a Major Accident
93
What is the definition of a major hazard facility?
A facility where Major Accident Hazards exist
94
What do HAZID and HAZOP stand for?
HAZID = Hazard Identification
HAZOP = Hazard and Operability
study
95
How do HAZID and HAZOP differ?
HAZID - Early Hazard identification should seek to identify the maximum number of potential Hazards in order that these can be screened and then taken forward for assessment in subsequent project stages. Hazards are recorded in the HSE Risk Register
HAZOP - Uses a brainstorming approach to address the full scope of the planned activities and to fully record the reviews. Important that the facilitation is conducted by experienced team of personnel with all relevant disciplines represented, including personnel with experience of operating or maintaining facilities similar to the one proposed.
96
What are the principles of safe design?
What do QRA and IRPA stand for?
• Designs should start with the premise
of inherent safety.
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• Quantitative risk assessment (QRA) is
used to determine the individual risk
per annum (IRPA) of both workers and
members of the public exposed to the
hazards.
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• IRPAs are dependent upon worker
location and duration of exposure.
Plant layout and operating philosophy
therefore have a significant effect on
safety.
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97
What does ALARP stand for?
As Low As Reasonably Practicable (looking at risk)
98
What are the stages of hazard control (barriers, looking at
| the 'Swiss cheese model')?
Prevention
Detection and control
Mitigation
Emergency
99
What is asset integrity?
Asset integrity, or asset integrity management systems (AIMS) is the term for an asset’s capacity to run effectively and accurately, whilst also protecting the wellbeing of all personnel and equipment with which it interacts – as well as the measures in place to assure the asset’s life cycle.
Asset integrity applies to the entirety of an assets operation, from its design phase to its decommissioning and replacement.
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What are the 3 interlinking elements on asset integrity?
Design and build integrity
Sustain integrity
Operate with integrity
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What is an EIA?
| What does it comprise of?
Environmental impact assessment
They should be carried out through the life-cycle of new developments and must address the risks associated with the planned activities.
They should also comprise of:
- A description of the existing environment
- A description of the project
- Assessment of potential impacts
- Development of mitigation methods
- Environmental management plans
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What is meant by start-up?
A start-up is initiated when sufficient groups of systems have been declared SRFSU (system ready for start-up) such that the facility can be declared FRSU and final products can be delivered safely at the end of the process.
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Who is accountable for the delivery of a project?
The project manager is accountable for delivery of the project until final acceptance of the facility (FAC) following successful completion of the final performance test, and provide support to operations during the initial operational stages.
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What does the performance management baseline consist of?
Scope
Schedule
Baseline budget
Assumptions
Exclusions
Once said, the performance management baseline is managed under formal change control
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What is EVM?
Earned value management
It uses cost as a common measuring unit and each activity in the plan is assigned a monetary value
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How is earned value used as a measure of performance and schedule variance?
Schedule variance = Earned value - Planned value
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How is schedule performance index calculated?
SPI = Earned value / Planned value
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How is cost performance index calculated?
CPI = Earned value / Actual cost
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What are the methods for calculating earned value?
Milestone method – value is earned when milestones are achieved
Modified milestone method – allows value to be earned between milestones
Quantity method – value is calculated based on quantities completed per baseline
Percentage complete – subjective judgement
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How is earned value for overheads calculated?
A couple of different ways for calculating earn value for overhead activities are used:
Level of effort – value earned by the passage of time
Apportioned effort – effort which is related and proportional to measured effort in other work packages
The apportioned effort approach is much better for estimating this for project management because a project manager should not claim more progress on the progress that the rest of the project has actually made
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What is included in a performance report?
Performance to the month end
Variances to approve targets or critical path
Risks, problems, issues, or constraints that might prevent project objectives from being reached
Trends and forecasts of future performance
Actions been taken
Areas where support or intervention are required
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Give examples of some permits and consents required by various bodies for the progress of a project:
(Bodies include local, regional, and national governments, international agencies, and land owners)
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Planning permission
Environmental impact
Social impact
Seismic acquisition
Drilling activity
Design
Location of facilities
Pipelines works authorisations
Safety
Construction works (permanent, temporary, camps, and contractors)
Emissions
Registration of radioactive devices
Imports and Exports
Foreign national licenses
Operations
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What should be considered when designing a team?
Strategic alignment:
You must consider how the organisational structure can be aligned optimally to deliver the project goals and objectives.
Ensure it is clear how each of the roles contributes to the overall performance
Added value:
Is it clear that the proposed organisational structure will add value
Internal interfaces
Coherence:
Are the roles focused on the management of key deliverables
Span of control (number of employees that report report directly to a single manager)
People:
Does the structure build on the strengths of the people in the team.
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Describe accountability vs. responsibility:
The accountable person is the individual who is ultimately answerable for the activity or decision.
The buck stops with the accountable person. This includes ‘yes or no’ authority and veto power.
Only one accountable person can be assigned to an action
The responsible person is the individual(s) who actually complete the task.
The responsible person is responsible for action /
implementation. Responsibility can be shared.
The degree of responsibility is determined by the accountable
person.
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What does a RACI chart consider?
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Who is...
Responsible
Accountable
Consulted
Informed
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What are the different stages of the Tuckman model for team development?
Forming - team acquaints and establishes ground rules.
Storming - members start to communicate their feelings but still see themselves as individuals
Norming - people feel part of a team. Team recognises one common goal and mutual plan
Performing - the team works in an open and trusting atmosphere
Adjourning - the team assesses their work.
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What are the stages of the influencing process?
Gaining entry - build trust and credibility
Joint diagnosis - seek common ground, listen, explore
Bring about change - negotiate differences
Consolidation - review process and outcomes
You must consider whether you come across as assertive, aggressive, responsive, or passive.
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What is involved in engaging stakeholders?
Identify (all stakeholders)
Analyse (their interests and behaviours. Determine the strength of their support and influence)
Plan
Engage and align
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What is the aim/purpose of the Create stage of the 'Stage Gate' process?
1. Create
* Confirm the project goal(s)
* Frame the project
* Develop a realistic (unoptimized) project delivery strategy
* Develop a business case that is sufficiently attractive to gain funding
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What is the aim/purpose of the Asses stage of the 'Stage Gate' process?
2. Assess
* List the project ‘givens’ and challenge them
* Define the strategic approach to focus areas that must be addressed early;
* Access data for a basis of design
* Gather contractor market intelligence to confirm the project’s do-ability
* Analyse potential show-stoppers
* Confirm the business case is still attractive
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What is the aim/purpose of the Select stage of the 'Stage Gate' process?
3. Select
* Select the optimum project solution from initially a long list, and then a short list of options
* Develop cost and schedule estimates for each short-listed option and analyse the economics (business case) for each
* Develop a suitable operations and maintenance philosophy
* Freeze the basis of design
* Summarize this in a concept selection report
* Hold a contracting strategy workshop
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What is the aim/purpose of the Define stage of the 'Stage Gate' process?
4. Define
* Develop the design of the selected option to a level suitable for tendering to execution contractors
* Tender the work and select an execution contractor(s)
* Apply for and receive the necessary permits and consents
* Prepare detailed cost estimates
* Confirm the business case based on a detailed cost estimate is suitable for sanction
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What is the aim/purpose of the Execute stage of the 'Stage Gate' process?
5. Execute
* Execute the work to deliver an operational system
* Achieve final acceptance and transfer of accountability from project to operations
(Often followed by 'Operate')
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What are the 2 types of knowledge?
Tacit
Explicit
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What is tacit knowledge?
Tacit knowledge is knowledge embedded in the human brain that cannot be easily written down
Tacit knowledge needs to be shared person-to-person
Tacit knowledge is the richest, and probably the most valuable type of knowledge
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What is explicit knowledge?
Explicit knowledge is knowledge that can be expressed in writing and codified.
Transferring lessons into standards and guidelines is probably the most efficient way of ensuring that knowledge is used.
If a lesson can be described in words, it will maximise the benefit of any future person-to--person tacit knowledge transfer.
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When should we consider lessons?
A lesson is knowledge or understanding gained by experience, presented in the form of ‘advice to others’.
We should review lessons at the start of each project stage (to feed into the planning for that stage).
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What is facilitation and the lesson capture process?
Lesson capture process - when lessons learned via a project are written up by the facilitator and agreed with the team.
The lessons are then reviewed by the corporate centre, who examine whether their standards must be enhanced. Agreed lessons are stored in a 'lessons library' for later retrieval.
The purpose of facilitation is to help an individual or group of people to gain a common understanding of an issue, and to allow them to consider how they may (or, with the benefit of hindsight, might have) overcome this issue.
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What is the project closeout?
Project closeout is the successful completion of a project and the final transfer of assets to the client.
It includes heavy oversight to ensure the project is ready, like checking specifications, collecting documents and closing out existing contracts for equipment rentals or subcontractors.
A close-out is a work process to finalise all activities of the project at the end of the project including hand-over the facilities and documentations to the client according to the contract terms and conditions.
The Project Close-out activities include the preparation and development of project completion report (e.g., project histories and performance analysis with relevant raw data); project financial close out activities; archive project information to the company organisation; appraisals and demobilise project members.
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What's the punch list?
A list of usually minor tasks to be completed at the end of a project.
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What is quality management?
Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence.
This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.
