The document is an engineering procedure that outlines requirements for Project Execution Plans (PEPs) at Saudi Aramco. It defines PEPs as strategic planning documents that relate approved project scope to contracting, scheduling, and responsibilities. It specifies when abbreviated and full PEPs are required and what they must include, such as a project summary, contracting strategy, organization chart, milestone schedule, and more. The procedure provides instructions for developing PEP sections and details what should be addressed in areas like contracting strategy, project summary, and timing of PEP issuance and updates.
The document is an engineering procedure that outlines requirements for Project Execution Plans (PEPs) at Saudi Aramco. It defines PEPs as strategic planning documents that relate approved project scope to contracting, scheduling, and responsibilities. It specifies when abbreviated and full PEPs are required and what they must include, such as a project summary, contracting strategy, organization chart, milestone schedule, and more. The procedure provides instructions for developing PEP sections and details what should be addressed in areas like contracting strategy, project summary, and timing of PEP issuance and updates.
The document is an engineering procedure that outlines requirements for Project Execution Plans (PEPs) at Saudi Aramco. It defines PEPs as strategic planning documents that relate approved project scope to contracting, scheduling, and responsibilities. It specifies when abbreviated and full PEPs are required and what they must include, such as a project summary, contracting strategy, organization chart, milestone schedule, and more. The procedure provides instructions for developing PEP sections and details what should be addressed in areas like contracting strategy, project summary, and timing of PEP issuance and updates.
Project Execution Plan Document Responsibility: Project Support and Controls Dept. Saudi Aramco DeskTop Standards Table of Contents Previous Issue: 31 May, !!! "e#t Planned $pdate: 1 September, !!% Revised para&rap's are indicated in t'e ri&'t mar&inPa&e 1 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan 1 Scope........................................................... 2 2 Applicable Documents.................................. 3 3 nstructions................................................... 4 4 !esponsibilities............................................ 1" Ex#ibits............................................................... 1$ Ex#ibit A - %able o& 'ontents............................ 1$ Ex#ibit ( - Appro)al S#eet................................. 1* Ex#ibit ' - !e)ision 'ontrol............................... 20 Ex#ibit D - 'ontracting Plan +atrix.................... 21 Ex#ibit E - 'omparison o& ,arious 'ontracting Alternati)es............................... 22 Ex#ibit - - Project +ilestone Sc#e.ule.............. 23 Ex#ibit /.1 - SAP+% 0rgani1ation 2%3pical Design P#ase4............................... 24 Ex#ibit /.2 - SAP+% 0rgani1ation 2%3pical 'onstruction P#ase4...................... 25 Ex#ibit 6 - Project !esponsibilit3 +atrix............ 2" Ex#ibit - ,alue Practices Sc#e.ule................. 27 Pa&e o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan 1 Scope 1.1 Definition The Project Execution Plan (PEP) is a strategic planning document that defines objectives, plans, reuirements and related information necessar! for optimum project execution. "t is a master reference guide that promotes common understanding and alignment of all project participants. The PEP is prepared b! the Project #anager, $ith input from the Proponent and other %audi &ramco organi'ations that have (e! roles in a project)s execution. 1.* Purpose The PEP serves as a communications and coordination tool that formall! establishes the Project #anager)s front+end project planning, $ith emphasis on identif!ing issues critical to project success and defining strategies to address these issues. "t is an agreement endorsed b! the %audi &ramco Project #anagement Team (%&P#T), the Proponent, and #anagement defining the execution of the project, including schedule, method(s) of executing the $or( and responsibilities of major participants. "n one comprehensive document, the PEP relates the approved project scope $ith contracting and material plans, cost information, summar! schedules, value practices implementation, departmental responsibilities, and %&P#T staffing reuirements. The PEP is intended to provide strategic guidance to develop more detailed tactical planning and execution as the project progresses. 1., Timing and &pplication Pa&e 3 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The PEP shall be issued in accordance $ith the timing outlined belo$, $hich is designed to support the PEP)s purpose of serving as a strategic planning tool- &bbreviated PEP is mandator! for all .")s /ull PEP is mandator! for .")s + over 0*1## + or recommended b! the responsible Department #anager PEPs are $aived for #aster &ppropriation projects. 1.,.1 &bbreviated PEP To be issued prior to release of Preliminar! Engineering funds. 2hen reuested, P%34D 5 Project 4ontrols 3 "nformation %!stem 6nit (P43"%6) shall participate and assist %&P#T in the preparation of the PEP 7evel "" #ilestone %chedule. The &bbreviated PEP is intended to provide a frame$or( for subseuent planning. "t is not expected that ever! detail reuired b! %&EP+1* $ill be addressed at this time. &s a minimum, the %&P#T shall address the follo$ing items using the best information currentl! available. "t is understood that all sections are subject to further development and change- Project %ummar! 4ontracting %trateg! 8rgani'ation 4hart #ilestone %chedule Pa&e ) o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan 9alue Practices 4ontractor %audi'ation Plan #aximi'ing "n+:ingdom Design 2or( Projects $ithin Existing /acilities (;on+<rass =oots) &reas of 4oncern The &bbreviated PEP $ill be the basis for development of the /ull PEP if one is to be prepared. The &bbreviated PEP shall be updated or revised as reuired to reflect major changes in plans if a full PEP is not reuired. 1.,.* /ull PEP To be issued for approval b! ,>? preliminar! engineering completion or $ithin @> da!s of Project Proposal %tart. %&P#T $ill report status of PEP submittals in the PP6)s comments section. The PEP shall be updated as the need arises prior to implementing major scope changes or significant changes in contracting plan, and at other times deemed necessar! b! the PEP approval authorit!. %&P#T ma! issue a completel! revised document or an addendum covering the changed section(s) onl!. 2 Applicable Documents %audi &ramco Engineering Procedures SAEP-13 Project Environmental Assessments SAEP-14 Project Proposal Pa&e . o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan SAEP-31 Corporate Spare Parts Data Requirements SAEP-125 Saudi Aramco Enineerin Standards SAEP-32! Project Close-out Report %audi &ramco <eneral "nstructions "#-$$$2%&1$ 'ec(anical Completion and Per)ormance Acceptance o) *acilities "#-$&1$%$$2 Classi)ication o) Sensitive Documents %audi &ramco 4ost and %cheduling #anual %audi &ramco 4ontracting #anual %uppl! 4hain #anagement #anual 3 Instructions The PEP shall include the follo$ing sections- ,.1 Table of 4ontents, &pproval %heet and =evision 4ontrol /or format, see Exhibits &, ., and 4. ,.* Project %ummar! Provide a brief s!nopsis of the objectives, scope, and current progress status of the Project. "ncorporate into the Project %ummar!- ,.*.1 Project Purpose %ummari'e the purpose of the project explaining $h! it is being done (e.g., to increase production capacit! of a plant b! 1>>,>>> barrels5da!). ,.*.* Design .asis Pa&e / o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Provide a s!nopsis of ho$ the project is to be accomplished (e.g., to increase production b! expanding existing facilities or b! constructing a ne$ plant) b! summari'ing the project)s basis of design as described in the current scoping paper. ,.*., Project %cope .riefl! describe $hat is to be accomplished b! the project, such as project activities to be achieved, ph!sical facilities to be built, demolished, or revamped, etc. This information $ill be a summar! of the $or( described in the current Design .asis %coping Paper and5or Project Proposal scope of $or(. ,.*.A Project Progress %tatus Define $here the project currentl! stands in the project life c!cle, in order to establish the information basis on $hich the PEP is being prepared. .riefl! identif! the major ongoing activities and provide current percent complete of project proposal, detailed engineering, procurement, and construction, as applicable. ,.*.1 Project 7ocation PEP should state location of project and indicate $hether offshore or onshore. ,.*.B Project %hutdo$n =euirements PEP should identif! shutdo$n reuirements and if it is planned during Plant T3". ,.*.C =elated Projects Pa&e * o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan PEP should identif! other related projects that ma! impact the project. ,., 4ontracts The contract development process is often intricate and interrelated and once actions based on a particular strateg! are initiated, it ma! not be practical or possible to modif! the strateg!. &n overall contracting strateg! $hich addresses all aspects of the $or( must be developed and presented to management at an earl! stage of ever! project. ,.,.1 4ontracting %trateg! & 4ontracting %trateg! document reflecting the %&P#T)s initial vie$ on $hat t!pe(s) of contracts to be used shall be prepared as part of each &bbreviated PEP. This 4ontracting %trateg! shall be updated to reflect an! major changes (particularl! related to 88: contracts, non+lump sum contracts, and non+competitive a$ards). "f a /ull PEP is prepared, the 4ontracting %trateg! shall become part of it. "f a /ull PEP is not prepared, the 4ontacting %trateg! shall be updated even if other parts of the &bbreviated PEP are not. The 4ontracting %trateg! shall summari'e the plans for developing and procuring the necessar! contracts for the project)s major contracting phases (i.e., Project Proposal, Detailed Design, Procurement and 4onstruction). "nformation shall be categori'ed b! the major contracting phases mentioned and include the follo$ing- Pa&e 0 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan a) T!pe of 4ontract (7ump %um Turn(e!, 7ump %um, 7ump %um Procure5.uild, =eimbursable 4ost, 6nit =ate, %ervice 8rder, etc.) and the reasons for selection. b) Procurement #ethod (4ompetitive .id, %ole %ource, etc.) and reasons for selection and $hether an existing <eneral .id slate $ill be used. c) &ppropriate Project and 4ontracting #ilestones, for example- + Expenditure =euest &pproval (E=&) + Prepare and "ssue .id Pac(ages + 4ontract &$ard + #echanical 4ompletion + 8n %tream The 4ontacting %trateg! shall include an exhibit illustrating the contracting plan in matrix form (%ee Exhibit D). ,.,.* 4ontracting Plans Pa&e % o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan & 4ontracting Plan is reuired for each contract action (or related contract actions) unless the reuirement has been $aived (in $riting) b! the 4ontracting =epresentative. The 4ontracting Plan is the joint responsibilit! of the 4ontracting Department and the contract proponent. &fter approval b! the 4ontract %ignator!, the 4ontracting Plan shall be incorporated into the Project Execution Plan. /or more detailed instructions, refer to the %audi &ramco 4ontracting #anual 9""(1) + 4ontract Planning and 9"""(*A) + 4ontracting Plan (8utline). Prior to carr!ing out a detailed anal!sis as part of the 4ontract Plan, potential contracting alternatives in the form of a summar! level schedule comparison shall be prepared (%ee Exhibit E). /or projects involving major 7%T: contracts, the option of issuing the bid pac(age prior to E=& should be addressed. &nal!sis should include estimated effects on schedule, cost, and other considerations comparing the normal procedure of issuing bid pac(age after E=& $ith a proposed option of bidding prior to E=&. This anal!sis should also include evaluation of the feasibilit! of using the 7%T: bids in the E= estimate. ,.A #aterial Procurement Plan Pa&e 1! o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The #aterial Procurement Plan addresses project material reuirements, their procurement and movement. "t should define the proposed procurement and traffic responsibilities of %audi &ramco and the 4ontractor(s). Projects $ill revie$ proposed procurement actions $ith representatives of #aterial %uppl!. This revie$ shall involve, at a minimum, the project 7iaison 4oordinator of the Projects Purchasing Division. ,.A.1 4ritical and 7ong 7ead+Time #aterial and Euipment Prepare an itemi'ed listing of material and euipment considered critical and5or long lead items. %pecific actions should be identified to ensure that such items $ill arrive at the designated job site on or before the reuired dates irrespective if handled b! %audi &ramco or b! a contractor. Examples of such actions include use of air freight, dedicated truc(s, premiums, penalt! and incentives, identification, prioriti'ation, and close monitoring of critical material and its proper ties to the construction schedule, %&P#T representative at vendor)s shop, expediting custom clearance, unloading and placing large material on foundations rather than storing, etc. Pa&e 11 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan "f procurement of major euipment and materials is on the critical path of the project schedule, %&P#T shall consider various strategies to reduce its impact to the project schedule. %uch strategies ma! include earl! 4ompan! procurement, earl! 4ompan! procurement and assignment (DnovationD), 4ompan! or Project Proposal 4ontractor procurement of earl! vendor engineering (Dbeneficial engineeringD), and earl! engineering b! vendors using time unit rates under the Project Proposal 4ontractor)s contract. ,.A.* 8ther #aterial and Euipment Designate responsibilities bet$een %audi &ramco and 4ontractors for cost effective suppl! of materials and euipment to meet project schedules. The #aterial Procurement Plan reuires addressing maximum cost+effective usage of locall!+manufactured materials, use of on+hand and surplus material, material uantit! concerns, standardi'ation, and total cost of o$nership and ta(es into consideration the guidelines of %&EP+1*1, %audi &ramco Engineering %tandards, and the %uppl! 4hain #anagement #anual. /urthermore, the plan should address the use of existing corporate agreementsE vendor selection criteriaE material ualit! concernsE documentationE expeditingE inspectionE pac(ing and mar(ingE shipping, clearance and receivingE storing, issuing, staging, and the return and disposal of excess project material and euipment. ,.A., %urplus @48# #aterial and Euipment Pa&e 1 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan =evie$ %urplus @48# (previousl! (no$n as Direct 4harge F D4) material and euipment list that could be incorporated in the project)s design. %urplus @48# material and euipment should be loo(ed at in the earliest stages of design so that it can be incorporated into the design. ,.A.A Excess @4&T #aterials =evie$ Excess @4&T (previousl! (no$n as %audi &ramco #aterials %!stem F %&#%) materials list of high+ dollar+value items (01>,>>> and above) that could be incorporated in the project)s design. ,.A.1 Geav!58versi'e #aterial or Euipment Prepare a list of heav!5oversi'e material or euipment. Establish responsibilities for heav! lift reuirements. Geav! lift planning for materials and euipment, and related reuirements, $ill be coordinated $ith the %audi &ramco Geav! 7ift <roup. 4onsult $ith the #aterials Traffic Department regarding proposed international shipping arrangements and $ith the Transportation Department for in+:ingdom movements of heav!5oversi'e material or euipment. ,.A.B %tart+up, 8perating, and 4apital %pares Establish responsibilities and reuirements for start+up, operating, and capital spares procurement. Ensure compliance to reuirements for operating spare parts in accordance $ith %&EP+,1, 4orporate %pare Parts Data =euirements. &ddress the disposition of contractor procured spares, if applicable. Pa&e 13 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan ,.A.C 4ustoms Duties &ddress responsibilit! for pa!ment of customs duties, based on the most recent <overnment regulations including compliance $ith proper customs exemption reuirements if an!. ,.A.H Iualit! &ssurance5Iualit! 4ontrol "dentif! materials ualit! assurance and ualit! control planning reuirements. &ddress vendor inspection reuirements and plans, including identification of materials to be factor! tested and coordination $ith %audi &ramco 9endor "nspection. ,.1 Precommissioning, 4ommissioning, and %tartup Plan %tartup is defined as the transitional phase bet$een facilit! construction completion and onstream, including all activities that bridge these t$o phases (i.e., precommissioning through performance acceptance). 8verall project success is strongl! related to startup success, $hich depends heavil! on the degree and thoroughness of earl! startup planning. %audi &ramco <"+ >>>*.C1>, #echanical 4ompletion and Performance &cceptance of /acilities, provide the frame$or( for startup planning. The .est Practices DPlanning for %tartup #odelD is a useful reference and provides tools designed to assist in developing and implementing an earl! startup plan. The %tartup Planning #odel recommends that 1>? of the startup planning effort should be completed b! the end of Project Proposal phase. .! the end of detailed design the startup planning effort should be H>? complete. Pa&e 1) o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The startup plan addresses the roles and responsibilities of (e! persons and organi'ations, as $ell as the timing of startup planning and execution activities. The startup plan shall address the follo$ing issues- ,.1.1 =esponsibilities and Timing %&P#T and Proponent representative shall be assigned responsibilit! for managing the planning of startupE specif! $hen these assignments $ill be made and $hat their startup planning responsibilities $ill entail. "dentif! other (e! contributors to startup planning and execution, including "nspection, 7oss Prevention, contractors, vendors, and others as reuired, and define their roles and responsibilities. Provide estimated timing and duration of startup planning, precommissioning, mechanical completion, and commissioning activities, including operations and maintenance training reuired prior to startup. ,.1.* %!stems Turnover %euence Provide a conceptual plan of the brea(do$n of the facilit! into s!stems and the seuence in $hich these s!stems $ill be chec(ed out and turned over to the Proponent. &ddress specific plans to implement partial #echanical 4ompletions, if applicable. ,.1., %tartup Execution Plan (%6EP) Preparation Pa&e 1. o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The %tartup Execution Plan (%6EP) is a planning document that defines the objectives, plans, reuirements, and related activities and information necessar! for a successful startup. "t is a master reference guide that promotes common understanding and alignment of all project participants. ,.B Project 4ost ,.B.1 Project /unding Describe Preliminar! Engineering /unds reuirements, Prior &pproval Expenditure =euest (P&E=) /unds reuirements if applicable, and plans for E= Estimate preparation. &lso, describe the project budget amount and provide a summar! of its major elements of engineering, material, and construction if available. Describe the basis of the current estimate. "dentif! an! critical cost items that $ill reuire special attention to avoid cost overruns. ,.B.* 4ost 4ontrol Describe the strategies to be utili'ed to ensure effective cost control and accurate cost reporting throughout the project life from Preliminar! Engineering /unds approval through project close+out. &ddress the subjects of $or( brea(do$n structure, cost contingenc! management, cost status reporting s!stems, and expenditure forecast preparation. "dentif! an! uniue project characteristics that ma! reuire deviations from standard %audi &ramco cost control procedures, and provide plans for handling such cases. Pa&e 1/ o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The project)s $or( brea(do$n structure should be developed as a unified s!stem that supports integrated cost and schedule control. ,.C Project %chedule ,.C.1 Project Plan Describe the summar! logic and interdependencies used to develop the project milestone schedule. "dentif! critical schedule ris( items and the potential impact of unforeseeable schedule dela!s. Provide Project #ilestone %chedule (%ee Exhibit /) in bar chart format summari'ing major project activities, including plant outages and interfaces $ith other projects as applicable. The schedule shall include- contract development and a$ard milestone dates b! pac(ages value engineering studies project proposal revie$ and approval E= estimate preparation, revie$, and approval mobili'ation for engineering and construction detailed engineering control points long lead material procurement activities including release of purchase orders, fabrication, and deliver! interim construction milestones .eneficial 8n %tream (.8%) Pa&e 1* o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan mechanical completion precommissioning, commissioning, 3 startup shutdo$ns onstream ,.C.* Progress #easurement and %chedule 4ontrol Describe the methodolog! to be utili'ed to ensure accurate progress measurement and effective schedule control throughout the project life. &ddress the subjects of $or( brea(do$n structure, progress reporting s!stems, responsibilities of contractors $ith respect to progress measurement and schedule control, and 4ritical Path #ethod (4P#) scheduling soft$are reuirements. The %audi &ramco 4ost and %cheduling #anual provides a definition of scheduling levels of detail to be used on %audi &ramco projects. ,.H Project 8rgani'ation and "nterfaces ,.H.1 Establishing the %&P#T Describe the process of establishing the %&P#T, including the follo$ing- Through revie$ process that $ill be conducted to determine the t!pe of disciplines needed to be covered b! the %&P#T. 8bjectives and responsibilities (including correlation $ith $or( brea(do$n structure) for the Project #anager, %enior Project Engineers, and other %&P#T members as appropriate. Pa&e 10 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Provide organi'ation charts for each major phase of the project (Exhibit <). ,.H.* %&P#T "nterfaces Describe the roles, responsibilities, and reporting relationships bet$een the %&P#T, Proponent, and other parties involved in the project, including %audi &ramco departments and contractors. "nclude a t!pical project responsibilit! matrix (Exhibit G). Describe ho$ the %&P#T $ill provide effective and efficient communications among the %&P#T, proponent, support groups, and contractors during all phases of the project. Describe ho$ the %&P#T $ill provide close coordination and effective interface $ith other ." %&P#Ts or Proponents, $hose $or( $ill have direct impact on the Project)s activities. ,.@ 9alue Practices Pa&e 1% o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The oil and gas industr!, as a $hole, uses value practices that have been proven through experience to assist projects in reaching goals of shorter schedules and lo$er costs, as $ell as enhanced safet!. The value practices outlined belo$ are applicable to %audi &ramco projects and, $hen properl! planned and implemented, can help guide project teams to improved performance. "f a project team does not include the use of value practices as an activit! in the project plan, some value practices ma! be overloo(ed and potential benefits lost. Value practices must be implemented early in the project cycle to be efective, so the planning must refect this approach. Provide 9alue Practices "mplementation %chedule (Exhibit ") %&P#T may contact P%34D5Project Performance Optimization Division PPOD! for assistance $ith this section if reuired. ,.@.1 9alue Engineering %ummari'e %&P#T plan for implementing 9alue Engineering in accordance $ith the reuirements of %&EP+1A, Project Proposal. "dentif! $hen the 9E stud! $ill be conducted and b! $hom. ,.@.* .est Practices "mplementation Pa&e ! o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan %ummari'e %&P#T plan for implementing Project #anagement)s currentl!+identified or other industr! best practices in accordance $ith PP8D guidance or the reuirements of %&EP+1A, Project Proposal F as appropriate. %ince best practices have the greatest impact on a project in the ver! earl! stages, it is recommended that use of best practices be planned earl! and should be combined and repeated, as applicable. (/or example, a constructabilit! revie$ should be executed during preliminar! engineering at approximatel! ,>? and again before *>? detailed design completion.) The follo$ing best practices have been identified as having high pa!bac( potential for %audi &ramco projects- + 7essons 7earned + Project Definition =ating "ndex + Project Execution Planning 2or(shop (PEP2) + %cope 4ontrol 3 4hange #anagement + 4onstructabilit! + %chedule 8ptimi'ation + Planning for %tartup "t is the responsibilit! of the %&P#T to implement as man! of these practices as are appropriate to ensure successful project planning and execution. Pa&e 1 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan %hould other best practices be Drolled outD b! PP8D bet$een revisions of %&EP+1*, project teams should investigate if those ne$ best practices offer value improvement to their projects, and plan their implementation accordingl!. /or 7essons 7earned, %&P#T shall define the plan for finding and implementing existing lessons learned from previous projects applicable to the current project. &s a minimum, %&P#T shall search the Project #anagement)s 7essons 7earned database on the %audi &ramco intranet at the beginning of each project phase (project proposal, detailed engineering, and construction) to revie$ the latest lessons learned. /urthermore, %&P#T shall define plans for collecting ne$ lessons learned during the life of the project. &s a minimum, %&P#T shall collect and submit lessons learned at E=& (covering the Project Proposal phase) and #echanical 4ompletion (covering design, procurement, and construction phases) in accordance $ith %&EP+,*@, Project 4lose+out =eport. ,.@., .enchmar(ing %ummari'e %&P#T plans for initiating a formal benchmar(ing anal!sis in accordance $ith %&EP+1A, Project Proposal. "dentif! $hen the benchmar(ing stud! $ill be conducted and b! $hom. ,.1> Project %afet! and Environmental ,.1>.1 Preliminar! Ga'ard &nal!sis (PG&) and Ga'ard and 8perabilit! (G&J8P) %tudies Pa&e o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Plans and 8bjectives %ummari'e %&P#T plan for implementing PG& and G&J8P studies. The objective in performing PG& and G&J8P studies is to identif! an! major ha'ards, improve process safet!, and5or minimi'e operabilit! problems. &n additional goal is to provide further insight for ris( management decisions b! assigning a ualitative ris( factor to each potential ha'ard or operabilit! problem. =euirements and Timing The %&P#T and Proponent, in conjunction $ith the 7oss Prevention Department (7PD), and Process 3 4ontrols %!stem Department (P34%D) shall decide $hich projects and specific facilities reuire PG& and5or G&J8P studies. Duplicate facilities should not reuire ne$ PG& and5or G&J8P studies. 8nl! ne$ or upgrade facilities that use, produce, process, transport, or store flammable, explosive, toxic or reactive substances in large uantities are candidates for PG& and5or G&J8P studies. The PG& studies shall normall! be conducted during the project proposal stage and the report shall be incorporated into the Project Proposal. The G&J8P studies, if reuired, shall be performed during the detailed design $hen the facilit! design is firm and no major design changes are forecasted. G&J8P stud! recommendations shall be incorporated into the final design of the facilit!. Pa&e 3 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan PG& and G&J8P %tudies Execution The PG& and G&J8P studies should be part of the project proposal or detailed design contract, if %audi &ramco decides the 4ontractor is ualified to conduct the studies. "f the 4ontractor is not ualified to conduct the stud!, a subcontractor can be used. %&P#T shall notif! 7PD, P34%D, and all other concerned parties at least six $ee(s in advance of an! PG& or G&J8P stud! so that ualified personnel can be assigned and to participate. & cop! of the report shall be provided to 7PD for revie$ prior to release. %&P#T shall distribute copies of PG& and G&J8P stud! reports to all participants $ithin four $ee(s after the stud!. ,.1>.* Environmental &ssessment Describe the plan for preparing the Environmental "mpact &ssessment as reuired b! %&EP+1,, Project Environmental "mpact &ssessment. ,.1>., Project %afet! Program Describe the safet! program for the project. The program should describe the safet! objectives for the project and ho$ the program $ill be managed to ensure these objectives are met. &ddress the issues of accident prevention and contractor safet!. ,.11 4ontractor %audi'ation Plan Pa&e ) o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan &ddress $hat actions $ill be ta(en to promote and support the hiring and training of %audi &rab personnel b! contractors $or(ing on the project. ,.1* #aximi'ing "n+:ingdom Design 2or( &ddress $hat actions $ill be ta(en to promote maximi'ing the ": design $or(. &lso address the feasibilit! of performing portions of an! planned 7%T: 88: design $or( ":. ,.1, Projects $ithin Existing /acilities (;on+<rass =oots) &ddress $hat actions $ill be ta(en $ith regards to upgrade renovation or addition to existing facilities in the follo$ing areas. 7evel of design $or( during the project proposal development. =is( assessment for items that ma! impact the project cost estimate. ,.1A &reas of 4oncern &ddress project concerns $here corresponding plans of action or solutions have not been completel! defined. &n! unusual efforts or procedures reuired for successful project completion $ill be included in this section. &lso, an! anticipated problems that ma! affect operabilit!, cost or schedule should be highlighted here. ,.1A.1 Engineering Design Gighlight factors that ma! influence the project design (e.g., operations manning philosoph!, operating reliabilit!, capital versus operating costs, material sourcing premiums, labor premiums and location constraints, etc.). Provide action plans to address an! concerns. ,.1A.* 4onstruction Pa&e . o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Gighlight factors that can influence the project construction (e.g., site location, securit!, other projects, etc.). Provide action plans to address an! concerns. ,.1A., 4ompan! "nterface %ummari'e other %audi &ramco activities that $ill be affected b! the project (e.g., maintaining minimum production rates at existing facilities). ,.1A.A <overnment "nterface "dentif! anticipated interfaces $ith %audi &rabian <overnment authorities including 7and Permits and other reuired approvals. &ddress the timing and duration of all such activities. ,.1A.1 8ther 4oncerns "dentif! other (no$n factors that ma! impact efficient execution of the project and provide plans that address the concerns (e.g., %&P#T staffing restraints). 4 esponsibilities A.1 Preparation Preparation of the &bbreviated as $ell as /ull PEP, coordination of revie$s, and obtaining approval signatures are the responsibilities of the Project #anager. PP8D is available to explain this procedure and assist $ith PEP preparation and revie$. A.* &pprovals Pa&e / o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan The &bbreviated PEP that is prepared prior to release of Preliminar! Engineering funds (and all subseuent revisions) reuires approval of the Project #anagement Department #anager. %&P#T shall submit a cop! of the &bbreviated PEP to P%34D5P43"%6 to verif! the milestones and for$ard a cop! to PP8D for information. 4opies of all versions of the &bbreviated PEP shall also be included in the Preliminar! Project 4lose+out report (%&EP+,*@). /or projects $ith a value 0*1## or belo$ and $here the Department #anager has elected to prepare a full PEP, the initial issues onl! reuire approval b! the Project #anagement Department #anager. /or projects $ith a value bet$een 0*1## and 01>##, the initial full PEP reuires approval b! the &rea <eneral #anager after concurrence b! the Proponent &dmin &rea Gead. /or projects $ith a value over 01>## the initial full PEP reuires approval b! the 9ice President of Project #anagement after concurrence b! the Proponent &dmin &rea Gead (see approval sheet, Exhibit .). & revised full PEP onl! reuires approval b! a Project #anagement Department #anager after concurrence b! the Proponent Department #anager. & cop! of the revised full PEP shall be for$arded to the signator! of the initial full PEP. P%34D shall revie$ PP6 comments on the status of /ull PEP submittals at ,>? preliminar! engineering as an integral part of ."%= revie$s. 4opies of all versions of the /ull PEP shall be included in the Preliminar! Project 4loseout report (%&EP+,*@). A., Distribution Pa&e * o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan "t is the Project #anager)s responsibilit! to distribute the signed+ off PEP including initial and updated electronic or hard copies of both &bbreviated as $ell as /ull PEP. Distribution includes the Project Proponent, Project %upport and 4ontrols Department and #aterials %uppl!)s Purchasing Department. "n addition, copies of revised PEP)s shall be distributed to signatories of =ev. > PEP)s. A.A 4onfidentialit! "n accordance $ith <"+>C1>.>>*, 4lassification of %ensitive Documents, PEPs are to be classified b! the %&P#T as either D=estrictedD or D4onfidentialD (for DmajorD expansions or developments) and mar(ed and handled accordingl!. e!ision Summar" 31 August, 2004 !e)ise. t#e 89ext Planne. :p.ate8. Sc#e.ule. up.ate to incorporate impro)ements. Pa&e 0 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibits E#$ibit A % Table of Contents SECTI&' TIT(E - APP!0,A; S6EE% - !E,S09 '09%!0; 1 P!0<E'% S:++A!= 2 '09%!A'%9/ 3 +A%E!A; P!0':!E+E9% P;A9 4 P!E'0++SS099/, '0++SS099/, > S%A!%:P P;A9 5 P!0<E'% '0S% " P!0<E'% S'6ED:;E 7 P!0<E'% 0!/A9?A%09 A9D 9%E!-A'ES $ ,A;:E P!A'%'ES +P;E+E9%A%09 * P!0<E'% SA-E%= 10 A!EAS 0- '09'E!9 11 E@6(%S Pa&e % o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit ) % Appro!al S$eet +Re)er to Section 4%2 )or approval levels, PR-.EC/ E0EC1/#-2 P3A2 .6D<ET "TE# ;8. P=8KE4T T"T7E AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAA P&*ECT +A'A,E D+1, P!0<E'% +A9A/E+E9% DEPA!%+E9% AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAA DEPAT+E'T +A'A,E DA%E P!0<E'% +A9A/E+E9% DEPA!%+E9% AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAA ,E'EA( +A'A,E DA%E A!EA P!0<E'% +A9A/E+E9% Pa&e 3! o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan '09':!B AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAA DEPAT+E'T +A'A,E DA%E P!0P09E9% 0!/A9?A%09 '09':!B AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAA -ICE PESIDE'T.E/EC0TI-E DIECT& DA%E P!0P09E9% 0!/A9?A%09 APP!0,EB AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAA -ICE PESIDE'T DA%E P!0<E'% +A9A/E+E9% Pa&e 31 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e 3 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit C % e!ision Control Date e! Description Pa&e 33 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e 3) o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit D % Contracting Plan +atri# Pa&e 3. o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e 3/ o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit E % Comparison of -arious Contracting Alternati!es Pa&e 3* o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e 30 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e 3% o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit 1 % Pro2ect +ilestone Sc$edule Pa&e )! o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e )1 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit ,31 % SAP+T &rgani4ation 5T"pical Design P$ase6 Pa&e ) o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit ,32 % SAP+T &rgani4ation 5T"pical Construction P$ase6 Pa&e )3 o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan Pa&e )) o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit 7 % Pro2ect esponsibilit" +atri# Acti!it" E#ecute +anage Consult Appro!e (u.get (rie& -PDCP -PD -PD P Design (asis Scoping Paper -PD -PD -PD -PDCPCP+CEPD Project Execution Plan P+ P+ PCPS>'D E+ Project Proposal ' P+ -PDCPCES E+ Expen.iture !eDuest -PDCP+CPS>'D P+ -PDCPS>'D E@'0+ EngineeringCDesign ' P+ PCES P+ 'ontracting 'DCP+ P+ 'D E+CS!' +aterial ProcurementB D.'. +aterial SA+S +aterial nspection Expe.iting Spare Parts Eualit3 'ontrol 'CP+ 'C+SCP+ 'CP+' 'CP+' ' 'CP+' P+ P+ P+ P+'CP+ P+'CP+ P+ +S +S D +S +S +SCD P+ P+ P+ P+ P+ P+ 'onstruction ' P+'CP+ D P+ %urno)er ' P+'CP+ P P+CP S"mbols Description ' 'ontractor 'D 'ontracting Department E+ Executi)e +anagement 2SA04 EPD En)ironmental Protection Department ES Engineering Ser)ices 0rgani1ations E@'0+ Executi)e 'ommittee -PD -acilities Planning Department D nspection Department +S +aterials Suppl3 2SA0CAS'CA0'4 P Proponent P+ Project +anagement P+' Program +anagement 'ontractor PS>'D Project Support an. 'ontrols Department S!' Ser)ices !e)ieF 'ommittee Pa&e ). o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan E#$ibit I % -alue Practices Sc$edule Value Improvement Practice (egend Pro2ect Proposal Detailed Design Construction (enc#marGing (+ mmC33 9CA 9CA 'onstructabilit3 'onst mmC33 mmC33 9CA ;essons ;earne. H 'ollect 9eF ;;-' mmC33 mmC33 mmC33 ;essons ;earne. H mplement Existing ;;- mmC33 mmC33 mmC33 Project De&inition !ating n.ex PD! mmC33 9CA 9CA Project Execution Planning IorGs#op PEPI mmC33 9CA 9CA Planning &or Startup P-S: mmC33 mmC33 mmC33 Scope 'ontrol > '#ange +gt. S'>'+ mmC33 mmC33 9CA Sc#e.ule 0ptimi1ation S0 mmC33 9CA 9CA Pa&e )/ o( )* Document Responsibility: Project Support and Controls Dept. S+,P-1 Issue Date: 31 +u&ust, !!) "e#t Planned $pdate: 1 September, !!% Project ,#ecution Plan ,alue Engineering ,E mmC33 9CA 9CA 0t#er (est Practices mmC33 mmC33 mmC33 Pa&e )* o( )*