Shell Global Solution Flawless Project Delivery ... - Transfield Worley

Replace withpresenterslogoShell Global SolutionFlawless Project Delivery ProgramWolfgang PROBST, Shell Global Solutions - Malaysia

Replace withpresenterslogoAgenda1.) Introduction of the Presenter2.) What is Flawless – What are Flaws ?3.) Consequences – What can go wrong ?4.) Typical Flaws5.) When to do What - Front-End-Loading?6.) Plant Performance – Typical vs. Flawless7.) Implementation Sequence8.) How to start – The 11 Q’s9.) Flawlist Methodology10.) Generic Flawless Delivery Road Map11.)Elements of Q-Assurance Plan12.)Q-Captains Action13.) Generic Q-Captain Road Map14.) Flawless Delivery Q-Assurance Tool15.) Conclusion16.) Where it went right17.) Sakhalin Energy – as an example© Transfield Worley Services 20092

Replace withpresenterslogoIntroduction of PresenterIntroduction of the Presenter:Wolfgang PROBSTShell Global Solutions (Malaysia ) Snd.Bhd. – Kuala LumpurOperations and Asset Management Consultant© Transfield Worley Services 20093

Replace withpresenterslogoWhat is Flawless ? – What are Flaws ?IdentifyFlawsAssessRi skDevelopMitigation• All projects have “flaws” (Organisation, People, Assets)• Most flaws present themselves in Start-Up Phase (on critical path)• Many flaws are similar and repeats of other projects• The effect of flaws results in• Culmination of delays• Increased risk for failures with high severity impact• loss of production, HSE, business, reputationBarriersRecoverymeasures© Transfield Worley Services 20094

Replace withpresenterslogoConsequences – What can go wrong:Avoiding problems:• Chemicals complex, cleanliness problems – rework and production losses >$30 million• Chemicals complex, prototype effluent water handling – repairs($3 million), production loss >$20 million and additional operating costs (> $2 million permonth)• Refinery, start-up delays caused by instrumentation problems – production losses >>$60million• Refinery, inadequate cleaning followed by wrong preservation – rework and production losses(delay) worth >$100 millionImproving on performance:• In addition: Structuring the work-processes: time-saving typically more than one month, worth>30 million US$© Transfield Worley Services 20095

Replace withpresenterslogoTypical Flaws:• Leaking flanges/valves, gasket failures, wrong or no gaskets, misaligned flanges,cross contamination of liquids,• Blocked fine bores… filters, burner tips, instrument tappings catalyst beds,• Non functional systems, equipment, instrumentation, components• Poor or in-operability of systems, equipment….many alarms, trips etc• Incidents with HSE consequences• Non recognition of new technology, new equipment, new components• Non recognition of complex systems requiring significant organisational input etc• Lack of sequenced testing of components, equipment systems, units• Inexperienced organisation or inexperience on new unit/system/equipment© Transfield Worley Services 20096

Replace withpresenterslogoWhen to do What ….. Front-End-Loading:Scout/BOD/BDPPSPSEPCDet Eng/Proc/ConstrCSUComm/SU45%10%40%5%• More than 50% of flaws originate from the development phases.• Resolution clearly requires back integration of these flaws intoearly project phases….lessons learned.• Clearly if these flaws remain until last project phases thensignificant delay and cost will be the result.© Transfield Worley Services 20097

Replace withpresenterslogoWhen to do What ….. Front-End-Loading:100% 100%Influenceover costOIP/FPD focus needed inthe project phases withhighest influence andimpactCost ofchangesScouting BOD/BDP BDEP/PS EPC CSUProgress© Transfield Worley Services 20098

Replace withpresenterslogoWhen to do What ….. Front-End-Loading:SCOUTING5% costsFRONT-END DEVELOPMENT95% costsVALUEREALISATIONSCOUTINGBOD/BDPBDEP/PSEPCCSUGood definitionGood executionPoor executionABBValuePoor definitionGood executionPoor executionCDAGood project definition and executionCPoor project definition and good project executionBGood project definition and poor project executionDPoor project definition and poor project execution© Transfield Worley Services 20099

Replace withpresenterslogoPlant Performance – Typical vs. Flawless“Target date for production”Plant PerformanceFlawless Project Delivery and OperationReputationHSE$$$Typical PlantPerformanceCurve over timeCSU - first year(s) of operation© Transfield Worley Services 200910

Replace withpresenterslogoImplementation Sequence:Scouting(Identify / Assess)FED1(Select)FED 2/3 (EarlyDefine - Define)Detailed Eng.(Execute)Procurement(Execute)Construction(Execute)Commissioning &SU (Operate)1. Introduce Flawless in owner org.2. Roll out Flawless in owner & FEED contr org.3. Roll out Flawless in owner & FEED contr org.4. Roll out Flawless in E&P Organisation5. Roll out Flawless in Procurement6. Roll out Flawless in Construction7. Execute Flawless in Commissioning & SU© Transfield Worley Services 200911

Replace withpresenterslogoHow to start …… The 11 Q’sBusiness ControlsKPIStructureR&RComp.InfoDataTightnessCleanlinessAsset RelatedSchedule, Project managementIntegrityOperability & MaintHSE in transitionNoveltyComplexityTestingCompetency&ExperienceCoinciding EventsInformation & Data© Transfield Worley Services 200912

Replace withpresenterslogoFlawlist - Methodology?# Source Potential Root Risk Project Mitigation StatusFlaw Cause Level Phase*** ###### ###### ###### ###### ###### ###### ######*** ###### ############# ###### ###### ###### ############# ######*** ##### ###### ############################ ###### ###*** ###### ############# ###### ###### ########################## ######*** #### ########## ###### ################ ###### ######*** ####### ###### ###### ###### ################### ##*** #### ############# ################## ###### ###### ######*** ####### ###### ###### ############# ############# ######*** ### ############# ###### ###### ###### ###### ##*** ####### ###### ###### ################ ############# ######*** ### ############# ################## ################### ##*** ######## ###### ###### ###### ###### ###### ######*** ###### ############# ###### ###### ########################## ######*** #### ########## ###### ################ ###### ######*** ####### ###### ###### ###### ################### ##*** #### ############# ################## ###### ###### ######*** ####### ###### ###### ############# ############# ######*** ###### ############# ###### ###### ########################## ######*** #### ########## ###### ################ ###### ######*** ####### ###### ###### ###### ################### ##*** #### ############# ################## ###### ###### ######*** ####### ###### ###### ############# ############# ######*** ###### ############# ###### ###### ########################## ######*** #### ########## ###### ################ ###### ######*** ####### ###### ###### ###### ################### ##*** #### ############# ################## ###### ###### ######*** ####### ###### ###### ############# ############# ######Asset RelatedSchedule, Project managementKPITightnessCleanlinessIntegrityOperability & MaintHSE in transitionNoveltyComplexityTestingCompetency&ExperienceCoinciding EventsInformation & DataStructureBusiness ControlsR&RComp.InfoDataCategorise flaws per KeySuccess Area and Projectphase occurrence.IdentifyFlawsAssessRi skBarriersDevelopMitigationRecoverymeasuresEstablish project specific flawdatabase(based onSGSI Flaw register + ownLessons Learned).SeverityPeopleAssetsConsequencesEnvironmentReputationNo injury orNoNo effectNo0healthdamageimpacteffectSlight injurySlightSlightSlight1or healthdamageeffectimpacteffectMinor injuryMinorMinorMinor2or healthdamageeffectimpacteffectMajor injuryModerateModerateModerate3or healthdamageeffectimpacteffectPTD or upMajorMajorMajor4to 3damageeffectimpactfatalitiesMore thanMassiveMassiveMassive53 fatalitiesdamageeffectimpactIncreasing likelihoodABCDENeverHeard of inHasHasHasheard of inthe Industryhappened inhappened athappenedthe Industrythethe Locationmore thanOrganisationor more thanonce peror more thanonce peryear at theonce peryear in theLocationyear in theOrganisationIndustryPrioritiseusing riskmatrixDevelop mitigating actions (Barriers & Recovery measures)© Transfield Worley Services 200913

Replace withpresenterslogoGeneric Flawless Delivery Road Map:Key Performance Area’sKPI’s, “Cook-book”.Generic Flaws listingNovelty/Complexity workshopsMitigation Plans, Q-casesAgree Operations,Maintenance andCSU philosophy’sSet /AgreePerformanceExpectationsIdentify risks& FlawsOrganiseMitigation orBack-upBest Practices (e.g.Systemisation),Lead indicatorsHealth checks,Measurement Tools.ApplyPracticesWorthreplicatingTrackImplementationon measurestakenCorrectandImprove© Transfield Worley Services 200914

Replace withpresenterslogoElements of the Q Assurance Plan:• Flawless Start-up policy• Operations Implementation Planning• Key success areas 11 Q’s• Project objectives and targets• Key Quality Area - KPIStrategypolicy & objectivesOrganiseCorrectImprovenext project• Organisational structure• Clear R&R• Competence, Experience, Training• Documentation and its controlSet standardsPrepareControlTypical controls• Task breakdown (procedures/work instructions)• Job aids, checklists, critical tools and information• QA/QC controls and measurement points• Test protocols• Test and inspection points (number of tests• and inspections per item, sample size..)• Test and inspection criteria (for both performing• the activity/task and acceptance/rejection of)• Allowed rejection rates• Rejection rate for up scaling of actionMonitorpreparationsExecuteplansMonitorexecutionFinal review© Transfield Worley Services 200915

Replace withpresenterslogoQ-captains action:Q RoadmapProject KPIs• Top-Down: KPIs translated into Q-Area LIs with action plan to keephealthy• Bottom-Up: Detailed flaws to bemitigatedFPD FPD KPIs per Q-Area -areaFPD LIs per Q-AreaQ -areaFlaw database per Q-AreaActions for Q-captain -© Transfield Worley Services 200916

Replace withpresenterslogoGeneric Q-Captain Road Map:Q RoadmapStructureDevelop Q-Roadmap + KPI/LI’sPro-activenessCoordinate/drive FPD Risk Register verification processReview ITP Witness/Hold + generic (pre)-com procedures to incorporate FPDrequirementsPrepare for using Observation ReportsHearts&Minds on QualityTrain workforce on critical Quality Focus pointsCommunication program/Rewards programAssuring FSI implementation in the fieldWeekly reporting on LI’s and Roadmap actionsFurther develop the Q-Tour check sheets + Start touringCleanlinessFSI: Q-Instrumentation IntegrityOverall Health• Critical: immediate corrective action and / or• REDLImanagement attention required.• AMBER • Requires dedicated attention / additionalQ-captain ##actions for successAction planQ-team OPF-Com, ops/maint, ###• GREEN • Well in hand, current approach successfulOps, Constr., BETS, Q-Tightness, Testing,Interfaces PreservationKPINo loss of production or safety hazard due to failure of instrumentation equipment to perform as required, including auxiliaries/support systemsLIAcceptanceProject phases Lead IndicatorsCriteria Traffic light Status Comment/ActionReceipt of MaterialsList needs to be made of critical materials(incl PO nr) per sub-system. Wartehouseneeds report agianst this list. Then what is theNumber of critical materials being available atpotable water system Cl probe cause? Was it procured or does it needRFC.spares missing.expediting...Equipment FAT's at vedor worksConstruction focus areaswhen is thetrendNumber of E&I re-work performed (a.o. caused becomingby EX)worry again.Pre-commissioningCommissioningNumber of times functional test is not successfulcausing re-work.Q-action plan.Sequencenumber Q-captain Action Due date Traffic light Status Comment/ActionA Develop Q roadmap (incl weekly reporting) 08-Oct-07 review by FSI coordintaor/ SGSiB Go through FSI risk register for this Q. Add ownMake plan to close items on risk Prioritise them according system need datesLL. Coordinate verification process.register (verification process) by ops. Focus using critical systems.C Go through KPI-Lead indicators. Make plan to 08-Oct-07Start pre-com. Comm and constrmeet LI's. Define how to measure LI's. Reportto be completed (incl how are youweekly on LI via this sheet.going to measure it)D Further develop the Q-tour checksheets + start 20-Oct-07 Not started Checksheets first Based on Risk register verification needtouring.develop checklist for Q-tour. This will givepaper trail for close-out + metrics for LI's. UseSGSi example checksheets. Use synergyoverlap with other Q's (e.g. Qintegr.Instrumentation can check cleanliness forinstr in their Q-tours) . Includ in Q-tours (e.g.twice a week for 2 hours) as well Ops andBETS person.E Prepare for few Quality Focus points to beNot startedNon-reuse of gaskets. Not leaving anyhtingspecifically explained to workforce (training)behind in piping coca-cola bottle gloves© Transfield Worley Services 200917

Q-captain ##Q-team OPF-Com, ops/maint, ###Ops, Constr., BETS, Q-Tightness, Testing,Interfaces PreservationKPILIProject phases Lead IndicatorsReceipt of MaterialsNo loss of production or safety hazard due to failure of instrumentation equipment to perform as required, including auxiliaries/support systemsAcceptanceCriteria Traffic light Status Comment/ActionEquipment FAT's at vedor worksConstruction focus areasPre-commissioningCommissioningNumber of critical materials being available atRFC.when is thetrendNumber of E&I re-work performed (a.o. caused becomingby EX)worry again.Number of times functional test is not successfulcausing re-work.CleanlinessOverall HealthLIAction planpotable water system Cl probespares missing.List needs to be made of critical materials(incl PO nr) per sub-system. Wartehouseneeds report agianst this list. Then what is thecause? Was it procured or does it needexpediting...Q-action plan.Sequencenumber Q-captain Action Due date Traffic light Status Comment/ActionA Develop Q roadmap (incl weekly reporting) 08-Oct-07 review by FSI coordintaor/ SGSiB Go through FSI risk register for this Q. Add ownMake plan to close items on risk Prioritise them according system need datesLL. Coordinate verification process.register (verification process) by ops. Focus using critical systems.C Go through KPI-Lead indicators. Make plan to 08-Oct-07Start pre-com. Comm and constrmeet LI's. Define how to measure LI's. Reportto be completed (incl how are youweekly on LI via this sheet.going to measure it)D Further develop the Q-tour checksheets + start 20-Oct-07 Not started Checksheets first Based on Risk register verification needtouring.develop checklist for Q-tour. This will givepaper trail for close-out + metrics for LI's. UseSGSi example checksheets. Use synergyoverlap with other Q's (e.g. Qintegr.Instrumentation can check cleanliness forinstr in their Q-tours) . Includ in Q-tours (e.g.twice a week for 2 hours) as well Ops andBETS person.E Prepare for few Quality Focus points to beNot startedNon-reuse of gaskets. Not leaving anyhtingspecifically explained to workforce (training)behind in piping coca-cola bottle glovesNumber of critical materials being available atRFC.when is thetrendNumber of E&I re-work performed (a.o. caused becomingby EX)worry again.Number of times functional test is not successfulcausing re-work.• RED• AMBER• GREENpotable water system Cl probespares missing.• Critical: immediate corrective action and / ormanagement attention required.• Requires dedicated attention / additionalactions for success• Well in hand, current approach successfulCleanlinessOverall Health• RED • Critical: immediate corrective action and / orLImanagement attention required.• AMBER • Requires dedicated attention / additionalQ-captain ##Action planactions for successQ-team OPF-Com, ops/maint, ###• GREEN • Well in hand, current approach successfulOps, Constr., BETS, Q-Tightness, Testing,Interfaces PreservationKPINo loss of production or safety hazard due to failure of instrumentation equipment to perform as required, including auxiliaries/support systemsLIAcceptanceProject phases Lead IndicatorsCriteria Traffic light Status Comment/ActionReceipt of MaterialsEquipment FAT's at vedor worksConstruction focus areasPre-commissioningCommissioningList needs to be made of critical materials(incl PO nr) per sub-system. Wartehouseneeds report agianst this list. Then what is thecause? Was it procured or does it needexpediting...Q-action plan.Sequencenumber Q-captain Action Due date Traffic light Status Comment/ActionA Develop Q roadmap (incl weekly reporting) 08-Oct-07 review by FSI coordintaor/ SGSiB Go through FSI risk register for this Q. Add ownMake plan to close items on risk Prioritise them according system need datesLL. Coordinate verification process.register (verification process) by ops. Focus using critical systems.C Go through KPI-Lead indicators. Make plan to 08-Oct-07Start pre-com. Comm and constrmeet LI's. Define how to measure LI's. Reportto be completed (incl how are youweekly on LI via this sheet.going to measure it)D Further develop the Q-tour checksheets + start 20-Oct-07 Not started Checksheets first Based on Risk register verification needtouring.develop checklist for Q-tour. This will givepaper trail for close-out + metrics for LI's. UseSGSi example checksheets. Use synergyoverlap with other Q's (e.g. Qintegr.Instrumentation can check cleanliness forinstr in their Q-tours) . Includ in Q-tours (e.g.twice a week for 2 hours) as well Ops andBETS person.E Prepare for few Quality Focus points to beNot startedNon-reuse of gaskets. Not leaving anyhtingspecifically explained to workforce (training)behind in piping coca-cola bottle glovesCleanlinessOverall Health• RED • Critical: immediate corrective action and / orLImanagement attention required.• AMBER • Requires dedicated attention / additionalQ-captain ##Action planactions for successQ-team OPF-Com, ops/maint, ###• GREEN • Well in hand, current approach successfulOps, Constr., BETS, Q-Tightness, Testing,Interfaces PreservationKPINo loss of production or safety hazard due to failure of instrumentation equipment to perform as required, including auxiliaries/support systemsLIAcceptanceProject phases Lead IndicatorsCriteria Traffic light Status Comment/ActionReceipt of MaterialsEquipment FAT's at vedor worksConstruction focus areasPre-commissioningCommissioningNumber of critical materials being available atRFC.when is thetrendNumber of E&I re-work performed (a.o. caused becomingby EX)worry again.Number of times functional test is not successfulcausing re-work.potable water system Cl probespares missing.List needs to be made of critical materials(incl PO nr) per sub-system. Wartehouseneeds report agianst this list. Then what is thecause? Was it procured or does it needexpediting...Q-action plan.Sequencenumber Q-captain Action Due date Traffic light Status Comment/ActionA Develop Q roadmap (incl weekly reporting) 08-Oct-07 review by FSI coordintaor/ SGSiB Go through FSI risk register for this Q. Add ownMake plan to close items on risk Prioritise them according system need datesLL. Coordinate verification process.register (verification process) by ops. Focus using critical systems.C Go through KPI-Lead indicators. Make plan to 08-Oct-07Start pre-com. Comm and constrmeet LI's. Define how to measure LI's. Reportto be completed (incl how are youweekly on LI via this sheet.going to measure it)D Further develop the Q-tour checksheets + start 20-Oct-07 Not started Checksheets first Based on Risk register verification needtouring.develop checklist for Q-tour. This will givepaper trail for close-out + metrics for LI's. UseSGSi example checksheets. Use synergyoverlap with other Q's (e.g. Qintegr.Instrumentation can check cleanliness forinstr in their Q-tours) . Includ in Q-tours (e.g.twice a week for 2 hours) as well Ops andBETS person.E Prepare for few Quality Focus points to beNot startedNon-reuse of gaskets. Not leaving anyhtingspecifically explained to workforce (training)behind in piping coca-cola bottle glovesFPD Q-Assurance Tool: Q-Area xxQ-Captain NameQ-TeamQ Area xx -LIAction• GREENplanFPD Q-Assurance KPI Tool: Q-Area xx1. XXXQ Area xx -Q-Captain Name2. XXX • RED • Critical: immediate corrective action and / orQ-Teammanagement attenti on r equir ed.LILI• AMBER • Requires dedicated attention / additionalactions for successActionPhases • GREEN Lead Indicators • Well in hand, current approach successfulplanTarget Traffic StatusFPD Q-Assurance Tool: Q-Area xxlightFEEDQ Area xx -KPIQ-Captain Name• RED • Critical: immediate corrective FSI action requirements and / or included in IC Contract by Explain1. XXX management attention required.LIQ-Teamdateamber• 2. XXX AMBER • Requires dedicated attention / additionalactions for Detailed success Engineering / Procurement Action• GREENLI• Well in hand, current approach successfulxxxxxxxxx planPhases Lead Indicators xxxxxxxxxTarget Traffic Status CommentKPIConstructionlight/Action1. XXXFEEDxxxxxxxxx2. XXXFSI requirements included xxxxxxxxx in IC Contract by ExplainCommissioningdateamberLIDetailed Engineering / Procurement xxxxxxxxxPhases Lead Indicators xxxxxxxxxTarget Traffic Status Commentxxxxxxxxxxxxxxxxxxlight/ ActionFEEDQ Action plan (Roadmap).ConstructionFSI requirements includedxxxxxxxxxin IC Contract Action by ExplainDue Traffic Statusxxxxxxxxxdateamberdate lightDetailed Engineering /CommissioningProcurementDevelop KPI/ LI's (incl det eng, Procurement, constrution,xxxxxxxxxAxxxxxxxxx pre-com, Com)xxxxxxxxxxxxxxxxxxB Develop the Q Assurance plan.ConstructionDevelop Flaw register:Q Action plan (Roadmap).xxxxxxxxxFlaw list > add by brain strom > RAM > RCA > MitigationxxxxxxxxxActionDue Traffic Status CommentCommissioningCdate light/ActionxxxxxxxxxDevelop KPI/ LI's E (inclDefinedet eng,FlawlessProcurement,requirementsconstrution,for IC contracts (ITB)xxxxxxxxxA pre-com, Com) Plan and roll-out to IC contractor engagement regardingB Develop the Q DAssurance plan.Q Action plan (Roadmap)flawless.Develop Flaw register: F Define flawless Requiremetns into Procurement processActionFlaw list > add by brain Flawless strom implementation > RAMDue> RCA Plan >TrafficMitigationStatus Commentfor Construction phasedate light/ ActionDevelop KPI/ LI's (incl(Org/ structure post Det eng, Training, Handover flawlessC det eng, Procurement, constrution,AGpre-com, Com)actions etc)E Define Flawless requirements for IC contracts (ITB)B Develop the Q AssuranceReview of ITP's to include flawless requirements and W&HPlan plan. and roll-outHto IC contractor engagement regardingDevelop Flaw register:pointsD flawlessFlaw list > add by Fbrain Define strom > flawless RAM > Requiremetns RCA > Mitigation into Procurement processFlawless implementation Plan for Construction phaseC(Org/ structure post Det eng, Training, Handover flawlessE Define Flawless requirements G actionsforetc)IC contracts (ITB)Plan and roll-out to IC contractor Review of engagement ITP's to include regarding flawless requirements and W&HD flawless H pointsF Define flawless Requiremetns into Procurement processFlawless implementation Plan for Construction phase(Org/ structure post Det eng, Training, Handover flawlessG actions etc)Review of ITP's to include flawless requirements and W&HH points• RED• AMBER• Critical: immediate corrective action and / ormanagement attention required.• Requires dedicated attention / additionalactions for success• Well in hand, current approach successfulComment/ ActionComment/ ActionFPD Q-Assurance Tool: Q-Area xxQ-Captain Name• RED • Critical : i mmedi ate corr ec tive acti on and / ormanagement attention required.Q-Team• AMBER • Requires dedicated attention / additionalactions for success• Well in hand, current approach successfulQ Area xx -LIAction• GREENplanFPD Q-Assurance KPITool: Q-Area xx1. XXXQ Area xx -Q-Captain Name2. XXX • RED • Critical: immediate corrective action and / ormanagement attention required.LIQ-TeamLI• AMBER • Requires dedicated attention / additionalactions for successAction• Phases GREEN Lead Indicators • Well in hand, current approach successfulplanTarget Traffic StatusFPD Q-Assurance Tool: Q-Area xxlightFEEDQ Area xx -KPIQ-Captain Name• RED • Critical : i mmedi ate corr ecFSI tive acti requirements on and / or included in IC Contract by Explain1. XXX management attention required.LIQ-Teamdateamber• 2. XXX AMBER • Requires dedicated attention / additionalactions for Detailed success Engineering / Procurement Action• GREENLI• Well in hand, current approach successfulxxxxxxxxx planPhases Lead Indicators xxxxxxxxxTarget Traffic Status CommentKPIConstructionlight/ Action1. XXXFEEDxxxxxxxxx2. XXXFSI requirements included xxxxxxxxx in IC Contract by ExplainCommissioningdateamberLIDetailed Engineering / Procurement xxxxxxxxxPhases Lead IndicatorsxxxxxxxxxTarget Traffic Status Commentxxxxxxxxxxxxxxxxxxlight/ ActionFEEDQ Action plan (Roadmap).ConstructionFSI requirements included in IC ContractxxxxxxxxxAction by ExplainDue Traffic Statusdateamberxxxxxxxxxdate lightDetailed Engineering / ProcurementCommissioningDevelop KPI/ LI's (incl det eng, Procurement, constrution,xxxxxxxxxAxxxxxxxxx pre-com, Com)xxxxxxxxxxxxxxxxxxB Develop the Q Assurance plan.ConstructionDevelop Flaw register:.xxxxxxxxxQ Action plan (Roadmap)Flaw list > add by brain strom > RAM > RCA > MitigationxxxxxxxxxActionDue Traffic Status CommentCommissioningCdate light/ ActionxxxxxxxxxDevelop KPI/ LI's E (incl Define det eng, Flawless Procurement, requirements constrution, for IC contracts (ITB)xxxxxxxxx A pre-com, Com) Plan and roll-out to IC contractor engagement regardingB Develop the Q DAssurance flawlessplan.Q Action plan (Roadmap).Develop Flaw register: F Define flawless Requiremetns into Procurement processActionFlaw list > add by brain Flawless strom implementation > RAMDue> RCA Plan >TrafficMitigationStatus Commentfor Construction phasedate light/ ActionDevelop KPI/ LI's (incl(Org/ structure post Det eng, Training, Handover flawlessC det eng, Procurement, constrution,AGpre-com, Com)actions etc)E Define Flawless requirementsReview offorITP'sIC contractsto include(ITB)B Develop the Q Assuranceflawless requirements and W&HPlanplan.and roll-out H to ICpointscontractor engagement regardingDevelop Flaw register:D flawlessFlaw list > add by Fbrain Define strom > flawless RAM > Requiremetns RCA > Mitigation into Procurement processFlawless implementation Plan for Construction phaseC(Org/ structure post Det eng, Training, Handover flawlessE Define Flawless requirements G for IC contracts (ITB)actions etc)Plan and roll-out to IC contractorReview ofengagementITP's to includeregardingflawless requirements and W&HD flawless H pointsF Define flawless Requiremetns into Procurement processFlawless implementation Plan for Construction phase(Org/ structure post Det eng, Training, Handover flawlessG actions etc)Review of ITP's to include flawless requirements and W&HH pointsComment/ ActionComment/ ActionFPD Q-Assurance Tool: Q-Area xxQ-Captain Name• RED • Critical: immediate corrective action and / ormanagement attention required.Q-Team• AMBER • Requires dedicated attention / additionalactions for success• Well in hand, current approach successfulQ Area xx -LIAction• GREENplanFPD Q-Assurance Tool: Q-Area xxKPIQ Area xx -1. XXXQ-Captain Name2. XXX • RED • Critical: immediate corrective action and / ormanagement attention required.LIQ-Team• AMBER • Requires dedicated attention / additionalLIactions for successAction• GREENPhases Lead Indicators • Well in hand, current approach successfulplanTa rget Traffic StatusFPD Q-Assurance Tool: Q-Area xxlightKPIFEEDQ Area xx -Q-Captain Name1. XXX • RED • Critical: immediate corrective FSI action requirements and / or included in IC Contract by Explainmanagement attention required.LIQ-Team2. XXXdateamber• AMBER • Requires dedicated attention / additionalactions for Detailed success Engineering / Procurement ActionLI • GREEN • Well in hand, current approach successfulxxxxxxxxx planPhases Lead Indicators xxxxxxxxxTarget Traffic Status CommentKPIConstructionlight / Action1. XXXFEEDxxxxxxxxx2. XXXFSI requirements included xxxxxxxxx in IC Contract by ExplainCommissioningdateamberLIDetailed Engineering / Procurement xxxxxxxxxPhases Lead Indicators xxxxxxxxxTa rget Traffic Status Commentxxxxxxxxxxxxxxxxxxlight / ActionFEEDQ Action plan (Roadmap).ConstructionFSI requirements included xxxxxxxxx in IC Contract Action by ExplainDue Traffic Statusxxxxxxxxxdateamberdate lightDetailed Engineering / ProcurementCommissioningDevelop KPI/ LI's (incl det eng, Procurement, constrution,xxxxxxxxxxxxxxxxxxA pre-com, Com)xxxxxxxxxxxxxxxxxx B Develop the Q Assurance plan.ConstructionDevelop Flaw register:Q Action plan (Roadmap).xxxxxxxxxFlaw list > add by brain strom > RAM > RCA > MitigationxxxxxxxxxActionDue Traffic Status CommentCommissioningCdate light / ActionxxxxxxxxxDevelop KPI/ LI's E (incl Define det eng, Fla wless Procurement, requirements constrution, for IC contracts (ITB)xxxxxxxxx A pre-com, Com) Plan and roll-out to IC contractor engagement regardingB Develop the Q DAssurance flawlessplan.Q Action plan (Roadmap).Develop Flaw register: F Define flawless Requiremetns into Procurement processActionFlaw list > add by brainFlawlessstromimplementation> RAMDue> RCAPlan>TrafficMitigationStatus Commentfor Construction phasedate light / Action(Org/ structure post Det eng, Training, Handover flawlessDevelop KPI/ LI's (incl C det eng, Procurement, constrution,GA pre-com, Com)actions etc)E Define Fla wless requirementsReview offorITP'sIC contractsto include(ITB)Bflawless requirements and W&HDevelop the Q Assurance Plan plan. and roll-out H to ICpointscontractor engagement regardingDevelop Flaw register: D flawlessFlaw list > add by Fbrain Define strom > flawless RAM > Requiremetns RCA > Mitigation into Procurement processFlawless implementation Plan for Construction phaseC(Org/ structure post Det eng, Training, Handover flawlessE Define Fla wless requirements G for IC contracts (ITB)actions etc)Plan and roll-out to IC contractorReview ofengagementITP's to includeregardingflawless requirements and W&HD flawless H pointsF Define flawless Requiremetns into Procurement processFlawless implementation Plan for Construction phase(Org/ structure post Det eng, Training, Handover flawlessG actions etc)Review of ITP's to include flawless requirements and W&HH pointsComment/ ActionComment/ ActionReplace withpresenterslogoFlawless Delivery Q-Assurance Tool:Q RoadmapQ1FSI: Q-Instrumentation IntegrityLead Indicator TrackingRoadmap Actions + TrackingQ-Captain Assurance toolQ2FSI: Q-Instrumentation IntegrityQ5FSI: Q-Instrumentation IntegritySEIC OPF - Weekly FSI Health check reportFSI Q Area Q CaptainQ Captain (B2B)Indicator Lead PlanCommentsFSI CoordinatorTightness R G RED: Blocker xxx to be removed by managementCleanliness G GIntegrity – Process O R RED: Blocker xxx to be removed by managementIntegrity – Static G GIntegrity – Rotating O GIntegrity –Instruments O GIntegrity - Electrical R O RED: Blocker xxx to be removed by managementHSE G ONovelties & Complexities O GTesting R R RED: Blocker xxx to be removed by managementExperience G GCoinciding Events R G RED: Blocker xxx to be removed by managementPreservation R G RED: Blocker xxx to be removed by managementOperability/Maintainability G GWeekly FPD Status ReportInternal & External Health ChecksHC1 HC2 HC3Gaps?Close Gaps• Coach• Provide solutions• Best Practices© Transfield Worley Services 200918

Replace withpresenterslogoConclusion:Q Roadmap• Each project phase can produce flaws• If these flaws are not identified within the project phase in which they occurthen they get passed onto the next project phase….they may or may not becaptured in the next phase• If flaws remain until the CSU project phase then schedule delays andadditional rectification costs will be incurred. In many cases these will besignificant• Delays = lost revenue = not recoverable for project economics• The best method of identifying these flaws is from past projects and lessonslearned i.e. backward integration into the project phases• Clearly a structured process is needed to assist in identifying and mitigatingagainst these flaws.© Transfield Worley Services 200919

Replace withpresenterslogoResults – Where it went right:• PER+, Shell Pernis, refinery expansion (Hydrocracker, Gasification, Powerplant)• Shell Chemicals, Styrene Monomer and Propylene Oxide manufacturing,Moerdijk (Netherlands) and Singapore• Shell Chemicals, Nanhai project (China) – new petrochemical complex• Malampaya – Shell project, Philippines, onshore gas plant• Athabasca Oil Sands, Canada – extension of the Refinery to process• PDO (Oman), Harweel and Qarn Alam, Gas processing facilities• Sakhalin Energy Russia( OPF, BS2, LNG, Pipelines, All offshore Installations )• LNG projects (Oman, Nigeria, Australia, Russia)• Sabic (Saudi Arabia): United (Jubail), Yansab(Yanbu), Saudi Kayan (Jubail), ArRazi (Jubail), all petrochemicals© Transfield Worley Services 200920

Replace withpresenterslogoSakhalin Energy – As an ExampleWhy has it been such a success:1.) Competent Assessment2.) Management Commitment3.) Sponsors Funding4.) Superiors Support© Transfield Worley Services 200921

Replace withpresenterslogoSakhalin Energy – As an ExampleSEIC OPF “Flawless” Team:Superiors: Wim Stel / David DeJong ( Site Manager )Sponsors: Karl Johnson ( Dty.Commissioning Manager ) + Wolfgang Probst ( Dty Site Manager )Execution: SEIC OPF Commissioning Team + Commissioning ManagementAssessment: Peter van Brussel / Marco Houterman – Shell Global Solutions Malaysia© Transfield Worley Services 200922

Replace withpresenterslogoThe End:© Transfield Worley Services 200923