Pre-Engineered Standardized Turbomachinery Solutions: A Strategic Approach to Lean Project Management

A. Khalaf, Maher Ayed, Gianni Acquisti, E. Rizzo
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Abstract

Effective project management plays a crucial role to the success of organizations via resilient execution of activities, in terms of performance and efficiency. Due to the recent market dynamics and its associated uncertainties, affecting several segments in the oil and gas (O&G) industry, utilization of innovative contracting schemes such as Front End Engineering Design (FEED) competition, and value engineered products are becoming of great importance to achieve the project's goals optimally. This paper discusses the competitiveness and strategic benefits of employing the vendor's pre-engineered and standardized turbomachinery equipment/solutions, to meet the required functionality while maintaining the highest levels of quality and safety. Several project management concepts and tools were employed, such as SWOT analysis, to discuss the benefits of supplying vendor's pre-engineered high value and long-lead turbomachinery equipment within projects, as a cost-effective solution, in place of customized products. A Requirements-to-Implementation Mapping (RIM) exercise was also carried out to benchmark the pre-engineered solutions with the industry practices while considering the packaging requirements from well-known international and national oil companies. This paper also presents success stories of implementing pre-engineered solutions that strongly contributed in improving the management of projects from engineering to operational phase. This study works in line with the recent O&G operators’ initiatives in promoting agile approach to mitigate the forces that are impacting the industry and in turn the economy, such as COVID-19 pandemic. The study analysis, employing semi-quantitative approach, revealed that the pre-engineered solution brings to customers an improved value proposition in terms of cost, delivery, quality, safety, and aftermarket support, which contributes greatly in minimizing gold plating to achieve leaner projects. Standardized equipment is also found to be effective in minimizing the risks associated with changes and therefore improving the control on project constraints as well as simplifying the purchasing management of strategic equipment. In this respect, the use of standardization and pre-engineered activities could lead to a reduction of lead time up to 30%. The reliability of the standardized equipment will also be increased due to the proven frozen designs which have been repeatedly manufactured, tested, and supplied and therefore ensures successful and seamless project close-out. The proposed approach of mixing pre-engineered commodities to customized and configurable features based on site conditions provides the proper flexibility required by O&G industry while, simultaneously, maximizing the benefits of standardization. The strategic benefits of pre-engineered turbomachinery packages in the context of project management and supply chain process is not well recognized. This study explains these benefits to increase the customer's confidence level in utilizing this approach and benefit from its values, especially during the changing dynamics of the O&G industry.
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预先设计的标准化涡轮机械解决方案:精益项目管理的战略方法
有效的项目管理对组织的成功起着至关重要的作用,通过活动的弹性执行,在性能和效率方面。由于最近的市场动态及其相关的不确定性,影响了石油和天然气(O&G)行业的多个领域,采用创新的承包方案,如前端工程设计(FEED)竞争,以及价值工程产品,对于最佳实现项目目标变得非常重要。本文讨论了采用供应商预先设计和标准化的涡轮机械设备/解决方案的竞争力和战略效益,以满足所需的功能,同时保持最高水平的质量和安全。采用了一些项目管理概念和工具,如SWOT分析,来讨论在项目中提供供应商预先设计的高价值和长期领先的涡轮机械设备,作为一种具有成本效益的解决方案,代替定制产品的好处。在考虑知名国际和国内石油公司的包装要求的同时,还进行了需求到实施映射(RIM)练习,以根据行业实践对预设计解决方案进行基准测试。本文还介绍了实施预工程解决方案的成功案例,这些解决方案在从工程到操作阶段的项目管理中做出了巨大贡献。这项研究与最近油气公司推广敏捷方法的举措相一致,以减轻影响行业和经济的因素,例如COVID-19大流行。采用半定量方法的研究分析表明,预先设计的解决方案在成本、交付、质量、安全性和售后支持方面为客户带来了改进的价值主张,这极大地减少了镀金,从而实现了更精简的项目。标准化的设备也被认为可以有效地减少与变化有关的风险,从而改进对项目限制的控制,并简化战略设备的采购管理。在这方面,使用标准化和预先设计的活动可以将交货时间减少多达30%。由于经过反复制造、测试和供应的成熟冷冻设计,标准化设备的可靠性也将得到提高,因此确保了项目的成功和无缝结束。根据现场条件,将预先设计的产品与定制和可配置的功能混合在一起,为油气行业提供了所需的适当灵活性,同时最大限度地提高了标准化的效益。在项目管理和供应链过程的背景下,预先设计的涡轮机械包的战略效益尚未得到很好的认识。本研究解释了这些好处,以提高客户使用该方法的信心水平,并从其价值中获益,特别是在油气行业不断变化的动态过程中。
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