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PROJECT EXECUTION PLAN

CLIENT :

PROJECT NAME :

OUR PO NO : -

OUR WO NO : -

0 September 10, 2021 Issued For Bidding

Prepared Reviewed Approved
Rev. No Date Of Issue Status
by by by
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TABLE OF CONTENT
COVERING SHEET
TABULATION OF REVISED PAGES

TABLE OF CONTENT

1. PURPOSE ............................................................................................................ 6

2. SCOPE ............................................................................................................... 6

3. DEFINITION.......................................................................................................... 7

3.1. Project Execution Plan (PEP) ........................................................................................................................ 7

3.2. Front End Schedule....................................................................................................................................... 7

3.3. Project Schedule ........................................................................................................................................... 7

3.4. Resources..................................................................................................................................................... 8

3.5. Project Budget............................................................................................................................................... 8

3.6. Project Cost .................................................................................................................................................. 8

3.7. Cost Control .................................................................................................................................................. 8

3.8. Current Budget .............................................................................................................................................. 8

3.9. Posted Cost .................................................................................................................................................. 8

3.10. Committed Cost ............................................................................................................................................ 8

3.11. Total Expense............................................................................................................................................... 8

3.12. Actual Cost ................................................................................................................................................... 8

3.13. Total Actual .................................................................................................................................................. 8

3.14. Forecast to Go.............................................................................................................................................. 8

3.15. Estimated at Completion ............................................................................................................................... 8

3.16. Work Package or Summary .......................................................................................................................... 9

3.17. Work Unit, known as Master Schedule .......................................................................................................... 9

3.18. Work Item ..................................................................................................................................................... 9

3.19. Work Step or Work Sequence ....................................................................................................................... 9

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3.20. Progress ....................................................................................................................................................... 9

3.21. Baseline ....................................................................................................................................................... 9

4. REFERENCE ........................................................................................................ 9

5. DETAIL PROJECT EXECUTION PLAN PROCEDURE ...................................................... 10

5.1. General ....................................................................................................................................................... 10

5.2. Project Management & Control Scheme ...................................................................................................... 10

5.2.1. Duty & Responsibility ...................................................................................................................
10
5.2.2. Project Communications ............................................................................................................... 12
5.2.3. Project Document Control ............................................................................................... ..............
13
5.2.4. Documents Distribution Procedure for Approval to Company .......................................................
14

5.3. QA / QC Management Plan ......................................................................................................................... 14

5.3.1. QA Management Plan ................................................................................................................... 14
5.3.2. QC Management Plan ................................................................................................................... 21

5.4. Financial Management Plan ........................................................................................................................ 25

5.4.1. Introduction................................................................................................................................... 25
5.4.2. Scheme of Roll and Financial Management ...................................................................................
25
5.4.3. Financial Function......................................................................................................................... 26

5.5. Risk Management Plan................................................................................................................................ 27

5.5.1. Introduction................................................................................................................................... 27
5.5.2. Scheme of Project Risk Management ............................................................................................
27

5.6. Management Plan ....................................................................................................................................... 27

5.6.1. Engineering Organization ..............................................................................................................
27
5.6.2. Engineering Communication .........................................................................................................
27
5.6.3. Document Control .........................................................................................................................
27

5.7. Procurement Management Plan .................................................................................................................. 29

5.7.1. Introduction................................................................................................................................... 29
5.7.2. Job Description ............................................................................................................................ . 29

5.8. Logistic Management Plan........................................................................................................................... 30

5.8.1. Job Description ............................................................................................................................ . 30
5.8.2. Inventory Control ..........................................................................................................................
30
5.8.3. Warehouse .................................................................................................................................... 30
5.8.4. Outdoor Warehouse............................................................................................... ........................ 30

5.9. Health, Environmental and Safety Management Plan .................................................................................. 30

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5.10. Security Plan .............................................................................................................................................. 31

5.10.1. Task of Securities ..........................................................................................................................
31
5.10.2. Facility ..........................................................................................................................................
31
5.10.3. Location ........................................................................................................................................
31
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5.10.4. Job Description ............................................................................................................................ . 31

5.11. Mobilization of Equipment and Manpower ................................................................................................... 31

5.12. Front End Schedule .................................................................................................................................... 32

5.13. Project Schedule......................................................................................................................................... 32

5.14. Resources Plan .......................................................................................................................................... 32

5.15. Project Budget ............................................................................................................................................ 33

5.16. Projected Cash Flow................................................................................................................................... 34

5.17. Project Procedures ..................................................................................................................................... 35

5.17.1. Prepare Project Execution Procedure Check List ...........................................................................
35
5.17.2. Prepare Project Procedures ............................................................................................................
35
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1. PURPOSE
This project execution plan prepared for PHE OSES – Fabrication of Demulsifier Separator Vessel V -1400. It
is intended to enhance communication and coordination of project activities between Company and
Subcontractor.
The Company is PHE OSES
The Client is PHE OSES
The Contractor is Consortium of PT. Asiaserv Indonesia and PT. Surya Besindo
Sakti
This procedure serves as a project guideline for all parties to achieve effective and efficient project
implementation. The primary uses of the project plan are to document planning assumptions and decisions,
to facilitate communication among stakeholders, and to document approved scope, cost and schedule
baseline. This procedure describes the basic and method to be used in controlling the cost through out
the project period, to detect the variance by identifying potential problem and delay as early as possible. This
procedure describes the basis and method to be used in controlling the schedule throughout the project
period, to detect the variance by identifying potential problem and delay as early as possible.

2. SCOPE
This procedure covers detail of Project Execution Plan based on the latest project information. This
document is developed to enhance communication and coordination between the participants and/or the
company. It establishes project execution plant with the following item:
 Project Management and Project Control scheme
 Engineering Management Plan
 Procurement Management Plan
 Logistic Management Plan
 Construction Management Plan
 Labor Recruitment & Labor Relation Plan
 Front End Schedule
 Project Schedule
 Resources Plan
 Project Budged
 Project Cash Flow
 Project Procedure
 Data Collection
 Input Data into Report
 Varian Analysis
 Corrective Action
 Budget Revision
 Update Current Budget
 Update Total Expense To Date
 Update Total Actual To Date
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 Calculate Forecast To Go
 Update Estimate at Completion
 Update Project Cash Flow
 Update Project Balance

This Procedure also covers :

 Initiation is to determine a baseline for controlling the schedule for engineering, procurement,
construction and overall activities, including the progress measurement.
 Data collection is to collect progress and/or status report from engineering, procurement
and construction.
 Progress Monitoring is to calculate the progress for engineering, procurement, construction and overall
project.
 Varian Analysis is to analyze the difference between plan and actual of every discipline and its impact
to project completion date.
 Corrective Action is to perform necessary steps attempting to recover any schedule delay by means of
expediting, accelerating, fast tracking, adding resources.
 Forecast the final completion date is to estimate the end date of project completion based on the current
progress achievement by means of CPM scheduling technique or bar charting.
 Recovery Schedule is to develop a revised project schedule after the fact that the current progress
achievement slipped the project completion date, using CPM scheduling and cost optimation technique.
 Resource Forecasting is to calculate the resource requirement needed to accomplish the remaining
activities.
 Re-planning is to revise the project schedule in case there is a major change in scope impacting the
project completion date
 Reporting is to prepare updates reports by summarizing the project progress into the reporting format

3. DEFINITION

3.1. Project Execution Plan (PEP)

Contains the formal approved document used to guide both project execution and project control in
achieving the project objective and goal, which are determined, by the Company and Subcontractor
PM concerning the quality, cost and schedule aspect as per agreement.

3.2. Front End Schedule

Detail planned dates for performing activities, used as a project baseline tool. (attached in technical
document).

3.3. Project Schedule

The detail-planned dates for performing activities and the planned dates for meeting milestone, used
as a project control tool.
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3.4. Resources
The manpower, equipment and material required for project in achieving its objective
and implementation.

3.5. Project Budget

The real cost for implementing the project, which comes from contract price minus overhead cost,
profit, marketing expenses, corporate cost and contingencies, approved by Vice President and
Operation Manager.

3.6. Project Cost

The cost required for project implementation.

3.7. Cost Control

A process of keeping cost within the bounds of budget or standard based upon work
actually performed, including monitoring actual versus budget, variance analysis, integrated
cost/schedule reporting, progress analysis and corrective action.

3.8. Current Budget

A valid budget at a point in time.

3.9. Posted Cost

Cost of work completed to date.

3.10. Committed Cost

Cost of work committed to be done.

3.11. Total Expense

Posted cost plus committed cost.

3.12. Actual Cost

Actual cost of work committed to be done to

date.

3.13. Total Actual

Posted cost plus actual cost.

3.14. Forecast to Go
Predicted cost for finishing the remaining work.

3.15. Estimated at Completion

Total expense cost plus forecasted to go.
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3.16. Work Package or Summary

The project deliverable at the lowest level of Work Breakdown Structure contains several activities
with main key date(s) in monthly basis. The work package could also be treated as a milestone to
achieve the target at a certain time.

3.17. Work Unit, known as Master Schedule

Contains all major activity sequences and interdependencies using PERT method, showing
the critical path and floats in weekly basis.

3.18. Work Item

Support to level-1 work unit that covers all activities using PERT method, showing the critical
path and floats in daily basis.

3.19. Work Step or Work Sequence

Support to level 2 Work Item and is the lowest level of project activities in daily basis to measure the
progress. Some projects have more detail than work step, depending on the type and complexity of
the project. The more detail level needs more effort to control.

3.20. Progress
Actual work completed divided by total scope of work. Physical progress measurement is
determined on monthly basis at the monthly cut off date for all specific work units and for the overall
work, the weight of each specific work unit being proportional to its cost value

3.21. Baseline

The original plan ( a project work package or an activity ) plus or minus approved changes. Usually
used with a modifier (e.g., cost baseline, schedule baseline, performance measurement baseline).

4. REFERENCE
These procedure developed refer to the following document :
 Quality Manual
 Project Management Guideline Procedure
 Project Execution Plan Procedure
 Project Schedule Control Procedure
 Project Progress Report Procedure
 Project Change Management Procedure
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5. DETAIL PROJECT EXECUTION PLAN PROCEDURE

5.1. General
Upon completion of Internal Kick off meeting, Project Manager (PM) and project team coinciding with
the preparation of Client Kick off meeting will review and complete the Project Execution Plan (PEP),
to ensure its completeness and accuracy for field implementation. In case of limited time to prepare
both Client Kick off meeting and PEP, PM should attempt to accelerate the preparation work.

The schedule described in contract document is defined as Master Schedule and become the
original summarized schedule (level 2 or 3). The amount stated in the contract is known as Contract
Price. The real cost for implementing the project named project budget, is the contract price
minus overhead cost, profit, marketing expenses, corporate cost and contingencies.

5.2. Project Management & Control Scheme

For executing of this project the Project Director will act as the representative of board
management to arrange a Project Management which will be responsible for execution the project

5.2.1. Duty & Responsibility

Due to the wide scope as well as technical challenges, the subcontractor intends to
implements a project organization task force. By this organization all resources needed to
accomplish project will be assigned full time in strict accordance their rule and responsibility for
successful of project. Set up a project organization and its responsibility as following.

Project Manager : who is the number one manager in this project has responsibilities as
follows:
 Review and complete the Project Execution Plan
 Collect all information related to the Project Execution Plan
 Subcontractor contact person / decision maker related to the project
 Review and approve Front End Schedule
 Review and approve Project Schedule
 Review and approve Resources Plan
 Complete, review and approve Project Execution Plan Check List
 Review and approve Project Plan according to procedure approval process
 Monitoring and control of the project cost
 Implementation of the project according to the schedule
 Liaison with the Company and obtaining necessary information from the owner and
vendors and feeding in the engineering, procurement and construction section
 Coordination developing and compiling all project documents as per the agreed documents
list and coordinating with the Company for approval of all relevant documents
 Coordination mobilizing requires for maintaining schedule
 Coordination Procurement of all items
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 Coordination Implementing all sub subcontractors

 Coordination Resolving conflicts
 Coordination Archiving correspondences
 Review and approve the monthly cost summary report
 Provide variance analysis and determine necessary corrective action
 Review and approve the proposal budget revision
 Approve the Project Control System
 Approve the re-planning schedule
 Manage project in day to day

Project Control Manager : who is a manager that has almost all of the project information
has responsibility as follows:
 Coordinate Preparing summarize Front End Schedule
 Coordinate Preparing summarize Project Schedule
 Coordinate Update summarize Resources Plan
 Coordinate Update summarize Project Budget
 Coordinate Preparing Projected Cash Flow
 Coordinate Scheduler and Reporting
 Collect all information related to the PEP
 Coordinate Prepare detail Front End Schedule
 Coordinate Prepare detail Project Schedule
 Update manpower, material and equipment plan (detail resources plan)
 Update detail Project Budget
 Review and complete Project Execution Procedure Check List
 Coordinate Preparing and finalizing Project Procedure according to procedure approval
process
 Determine the schedule recovery and re-schedule, together with Project Manager
 Ensure that all on-going projects are within the schedule
 Provide variance analysis and recommend necessary corrective action
 Review the proposal budget revision
 Update project cash flow
 Update project balance

Project Control Engineer : who is the supporting engineer to Project Control Manager has
responsibility as follows:
 Input data into monthly cost summary report and project cost status report
 Provide variance analysis and recommend necessary corrective action
 Prepare budget revision
 Update current budget
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 Update total expense to date

 Update total actual to date
 Calculate forecast to go
 Update estimate at completion
 Review the contract and determine the Project Control System such as level of
activities, weight value and progress measurement
 Collect the data and other reports regarding the progress and schedule control
 Calculate the progress percentage for engineering, procurement and all work discipline
 Review the difference between plan and actual, analyze constraints and its impact to
project schedule
 Prepare forecast and/or recovery schedule, resource forecast, re-planning and reporting
 Responsible to the integrity and maintenance of the primary project file

5.2.2. Project Communications

5.2.2.1. Introduction
This section is implemented for correspondence between Company and
Subcontractor.

5.2.2.2. Company correspondence

All formal correspondence to Company will be by Subcontractor transmittal letter. Drawing
submittals, design information submittal, and project progress report will be prepared by
all project section.

5.2.2.3. Internal Correspondence

For correspondence regarding progress and schedule, subcontractor and vendors will
correspond directly with Project Manager and provide carbon copy to Site Manager.
For correspondence regarding technical design matter, quality control and start-up and
performance testing, subcontractor and vendors will correspond directly with the
Engineering Manager and provide carbon copy to Project Manager.

5.2.2.4. Distribution Procedure for Correspondence

Due to the tight schedule for this project and the length time required for delivery by regular mail
services, correspondence will generally be either by facsimile or express courier service. Project
delay due to delay in delivery of documents will be responsibility of the sender.

5.2.2.5. Telephone Communications

Others may use telephone communication to transmit information or to further the consideration
of information. Telephone conversations are not conclusive in them and must be documented by
telephone memoranda if the communication has an official or significant status. It is not
necessary to assign log number to telephone memoranda. Telephone memoranda will be
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prepared and distributed to the parties involved in the telephone discussion with copies to other
parties, as required.

5.2.3. Project Document Control

5.2.3.1. Introduction
Project documents to be controlled include official project correspondence, memoranda,
calculations, drawings, design specifications, test records, manufacturer's material certifications
, manufacture's drawing and other such records. Document control procedures are based on the
project file system developed under the supervision of Project Control.

5.2.3.2. Administration
Project Control shall serve as the central point of project document control and shall process or
supervise the processing of documents from outside sources as well as documents generated
from consortium internal distribution or transmitted by Subcontractor to outside sources. The
activities include receiving, application of file numbers, distributing, expediting and releasing all
project documents.

5.2.3.3. Documents Receipt

Documents may be received from outside sources such as Company, subcontractor and
vendors.

5.2.3.4. Document Identification

All project mail, including faxes telegrams and package shall be delivered to Project
Control as incoming documents. Project Control shall process the original copy of each
incoming document, other than documents submitted in multiple copies (proposal,
instruction manual, etc.) and the transmittal letter or form for documents submitted in
multiple copies.
Processing shall include stamping document with the project routing stamp, dating the receipt,
marking the appropriate file number and indicating action and information parties in the space
provide on the routing stamp, and making required copies for action and information parties. All
documents should use numbering system as per attachment

5.2.3.5. Project Management Review

Project Control shall forward the action copy of the non-technical and commercial
documents to Project Manager who will review the document package. He will pay
particular attention that the proper file numbers are assigned and the correct party is
designated. The complete document package shall be returned to Project Control for
transmittal of the action and information copies, and filling of the original documents.
Project Control shall forward the action copy of the technical documents to Engineering
Manager who is assigned and the correct party is designated. The complete document
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package shall be returned to Project Control for transmittal of the action and information
copies, and filling of original documents.

5.2.3.6. Responsible Action Party

The copy of documents transmitted to the responsible action party shall be marked with
the word ACTION and route directly to the action party. The responsible action party is
responsible to review the document and provide the action as required. The responsible
action party may make further distribution of copies for action to one or more of the
project team or other personnel.

5.2.3.7. Project Reference Documents

Documents having only temporary significance or which are used for reference purpose in
general will not be filled in the project file.

5.2.3.8. Outgoing Documents

Project Control shall process all outgoing correspondence. Processing shall include verification
of file numbers, preparation of documents for mailing, completion of Subcontractor
internal distribution and distribution of copies to the project file, with appropriate copies to
subcontractor, other parties and Subcontractor Site Manager.

5.2.3.9. Manuscripts and Preliminary Drafts

Manuscripts and preliminary draft of specifications, reports and other such documents will not
normally be maintained in the project files.

5.2.4. Documents Distribution Procedure for Approval to Company

Each consortium member shall be responsible for getting approval to own drawing from
Company through Subcontractor Engineering Manager. When distribute the drawing packet to
Company, each consortium member or Supplier shall send a copy of the drawing to Project
Control for drawing control.

5.3. QA / QC Management Plan

5.3.1. QA Management Plan

5.3.1.1. Introduction
The subcontractor will issue Project Quality Assurance Plan to assure all material,
equipment, fabrication and installation process fulfill the project requirement by referring
to the Quality System requirement. The Document is model of Project Quality Plan that
will be used by subcontractor during perform The Project.
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5.3.1.2. Purpose
This document will describe The Quality System, and subcontractor to assure the
Project requirement will do activities and Quality Standard will be fulfilled. Referring to
The Quality System of subcontractor will develop Project Quality Plan.

5.3.1.3. Terminology
Vendor : The companies that appointed by subcontractor and approved by
subcontractor/company to supply part of product and perform part of subcontractor
scope of work or services for this project purpose.

5.3.1.4. Quality Requirement

5.3.1.4.1. Management Responsibilities

Organization chart will be developed base on project scope of work
requirement. Responsibilities of each member explained as follows :
 Quality Control / Quality Assurance Division Manager as Management
representative together with Project Manager should evaluate the Project
system effectiveness; ensuring that complain have been taken up and The
Quality Requirement have been fulfilled. Another responsibility of QA/QC
Division Manager is:
 Perform Quality Audit
 Evaluate vendor or sub vendor Quality System.

 Project Manager has responsibilities to perform The Project Quality

Management System, and ensuring that all quality activities by refer to the
Quality Procedure have been implemented by all Departments, approve the
Project Quality Plan that have been prepared by QA/QC Manager, lead
project review meeting to ensure that all quality problems have been
responded and follow up by related departments.

 Project Quality Assurance / Quality Control Manager has responsibilities to

prepare The Project Quality Plan, evaluate the project execution by survey,
audit or review and assist of Project Manager in project review meeting that
attended by Department Manager. Project review meeting will evaluate:
 Implementation of Quality System and project requirement.
 Evaluate of corrective action request, and all non-conformity.
 With relevant department discuss about corrective action to be taken.

 Project QA/QC Manager under controlled by Project Manager will report The
Project Quality System implementation to QA/QC Division Manager.
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 Department Manager have responsibilities to issue the procedures that will

be used to support their activities, ensure that implementation of these
procedures have been in line with Project Quality Plan.

 Site Manager has responsibilities to implement The Project Quality

Management System and ensure that all quality activities on construction
phase have been implemented by refer to the relevant procedure.

5.3.1.4.2. Commitment Management

Management of subcontractor has a commitment to produce qualified
products through:
 Communication is one of importance think to fulfill the customer
requirement base on the government regulations.
 Define quality policy and objective.
 Conduct management review.
 Assure the availability of resources.
 Define management representative.

5.3.1.5. Quality System

Project Quality Assurance Plan will be supported by management procedure and
detailed by relevant procedures, describe regulation of process control of each
department activities. During performed this project, Project Quality Assurance Plan
and Management Procedure will be controlled by Project Quality Assurance/ Quality
Control Manager (Project QA/QC Manager), Project QA/QC Manager and relevant
Department Manager will develop Project Quality Assurance Plan and relevant
procedures.

5.3.1.6. Contract Review

During perform this Project, Engineering Manager will be supported by relevant
Department Manager, have responsibilities to review and verify engineering design
changes. The changes related to the construction activities will be reviewed and
clarified by Site Manager. The clarifications of the changes include all aspect, and not
limited to the commercial aspect, schedule of project, and etc. Project Manager should
approve all deviation or the changes item.

5.3.1.7. Design Control

5.3.1.7.1. Responsibilities
Engineering Manager has responsible to control all engineering activities.
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5.3.1.7.2. Interface Design Control

Engineering Manager will controlled interfacing design with other party and or
authorize party. Project Engineering Manager identify the items or documents that
will interface and the document that should be approved by company.

5.3.1.7.3. Input Design

Engineering Manager will control and develop all design information from
company, vendor, authorize party and assure that only up to date information will
be used and distributed to relevant department. Design criteria will be fixed refer
to contract requirement and specification.

5.3.1.7.4. Output Design

Output design will produce approved of documents, specification drawing,
procedures and calculation sheet and another work sheet. Quality Assurance/
Quality Control Department will review out put design to make sure that the
designs have been:
 Fulfill output design requirement.
 Insist of acceptance criteria
 Conform with regulation
 Identify specific characteristic

Engineering Manager will approve the design out put to make sure the design
procedure have been followed and approved by authorized personnel and
distributed to other related departments.

5.3.1.7.5. Design Verification

Project Engineering Manager has responsibilities to control and develop the
design verification. The important items that should be confirmed during design
verification are:
 Safety System of equipment
 Accuracy of material take off
 Accessibility / operation ability
 Construction ability

5.3.1.7.6. Design Change Control

Project Engineering Manager will control design changes. Project Engineering
Manager will review and make sure that design change effects have been
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observed by relevant department and design change not deviate from project
contract requirement.

5.3.1.7.7. Field Design Change

Field Engineer will control design change at site. The effect that caused by
design change will be evaluated by Field Engineer and will be reported to
Engineering Manager.

5.3.1.8. Document Control

Each administration department will control correspondence document.
Engineering Manager will control technical document as drawing, procedure, vendor
technical document. All Department Manager should ensure that only latest revision
document or procedure that will be used as work reference, if prior revision document
being used as reference, this document should be marked “ Void ”.

5.3.1.9. Procurement and Sub Contracted

Procurement Manager will control procurement activities and Site Manager will control Sub
Subcontractor.

5.3.1.9.1. Vendor or Sub Subcontractor Audit

Procurement department select vendor or sub subcontractor from company
vendor list. Vendor or sub subcontractor will be proposed to the company for
approval. Vendor or sub subcontractor audit based on their capabilities and
experiences.

5.3.1.9.2. Quality requirement of vendor or sub subcontractor

All vendor or sub subcontractors should keep the quality requirement as
mentioned on purchase order. Vendor or sub subcontractor Quality Plan could
be developed by refer to Subcontractor Quality Plan and or contract
requirement.

5.3.1.9.3. Data for procurement and sub contract

Requisition Document and another supporting document as technical
specification, quality system requirement, test specification, acceptance
criteria, inspection and test plan, instruction sheet to vendor will be controlled
by:
 Identify department that will be responsible to prepare, review or approve
these documents including revised document.
 Review the relevant document prior publishes purchase order.
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5.3.1.9.4. Bid. Evaluation

Bid evaluation, purchase order and sub subcontractor were controlled by
consider;
 Ensuring that bid document have been conformed with requisition
requirement document
 Pre evaluation, to ensure that vendor or sub subcontractor have been
qualified and selected refer to approved vendor list.
 Clarify unclear condition of bid evaluation, prior purchase order or sub
subcontractor document published.

5.3.1.10. Material and Equipment Supplied by Company

Materials or equipments that supplied by company will be verified quality and quantities conform
to the quality requirement specification. By refer to the Receiving Material Procedure, and
all non-conformity or damages will be reported to company.

5.3.1.11. Inspection and Test

To ensure project activities meet customer requirements, subcontractor will submit
The
Inspection and Test Plan. It is subcontractor guideline to perform activities Inspection and
Test.

5.3.1.11.1. Organization
Inspection activities will be performed by personnel that have been
qualified and controlled by Quality Assurance / Quality Control Department.

5.3.1.11.2. Inspection and Test Plan

Inspection and Test Plan will be fitted to identify detail items of inspection
activities will be done by vendor or sub subcontractor, subcontractor,
Company, third party or government representative, especially for “Hold
Points” and “Witness Point”. This document is as vendor or sub subcontractor
references to perform inspection and test.

5.3.1.11.3. Shop Inspection Procedure

Quality Assurance / Quality control Manager will supervise all inspection
activities for material/equipment, and review inspection report to ensure that
all purchase order requirement and Project specification have been fulfilled.
Having ensured the all inspection items have been done, and the material /
equipment conform to the specification, Quality Assurance / Quality control
Manager or his representative will publishes “Inspection Release Notice”
(IRN). IRN’s copy will be given to traffic Department for packaging and
shipping preparation.

5.3.1.11.4. Receiving Material Inspection

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Quality Assurance / Quality Control Manager and Logistic Manager will arrange
and supervise inspection activities during receiving material on site to identify
and check the material or equipment condition. Inspection result will be
recorded and reported to Site Manager. Non-conformity was found during
receiving material process will be reported to Project Engineering Manager for
take corrective action.

5.3.1.11.5. Inspection and Test on Construction Phase

Inspection activities will be performed on site will be arranged and controlled
by Quality Assurance / Quality Control Manager. All Inspection activities
between sub subcontractor, subcontractor, company and other parties will be
identified and clarified on Inspection and Test Plan; Including clarify “ Hold
Point” and “Witness Point”. Non-conformance item that found during
inspection will be controlled by relevant procedure.

5.3.1.11.6. Final Inspection

Inspection and Test of each system will be done by refer to the inspection
planning. Result of inspection should be evaluated to the customer
requirement specification. Final Inspection will be performed after equipment
and/or system completely erected and it become document to release pre-
commissioning.

5.3.1.11.7. Inspection and Test Report

Inspection report of fabrication and procurement process will be controlled by
Quality Assurance / Quality Control Manager. Inspection Report of
construction process will be controlled by Quality Assurance / Quality Control
Manager.

5.3.1.12. Inspection/Test Equipment and Measurement Instrument Control

All equipment that will be used during inspection, test and measurement should be calibrated,
identify and preserve as relevant procedure. Subcontractor, Vendor or sub subcontractor should
do all activities mentioned above.

5.3.1.13. Control of Non Conforming Items

Project Engineering Manager have responsible to control and prepare corrective action
plan for non-conformance item of vendor equipment. Project engineering Manager will
control non-conformance item during construction. Project Engineering Manager will
arrange these activities after receiving non-conformity report:
 Review Report
 Find source of non conformance and make corrective action
 Reported non conformance to company as required
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 Supervise execution of corrective action.

 Control of design change for repair as design change procedure.
Quality Assurance / Quality Control Manager will arrange these activities mentioned
below:
 Review and perform the relevant Inspection item of the corrective action.
 Ensure that corrective action will be finished.

5.3.1.14. Corrective Action

Quality Assurance / Quality Control Manager will identify the condition that cause of
deviation to the Project Quality.
Quality Assurance / Quality Control Manager will arrange the meeting to find sources
and fix the plant to avoid this condition will be happened.

5.3.1.15. Storage, Packaging and Shipping

Packaging / shipping Procedure or method should be provided to ensure all material
and equipment was controlled and avoids material damage or loose. All material should
be good packaging for shipping/delivery or storage in certain period and provided with
complete document. Logistic Manager or assigned personnel is responsible to control
those material or equipment. Without completed requirement document material or
equipment prohibited bringing out from the warehouse.

5.3.1.16. Quality Report

Quality Report Document will be given to the company as Project
requirement.

5.3.1.17. Quality Audit

Quality audit for internal subcontractor organization or vendor / sub subcontractor, will be planed
and controlled by Quality Assurance / Quality Control Manager. Result of audit will be
documented by Quality Assurance / Quality Control Manager and reported to Division QA/QC
Manager.

5.3.2. QC Management Plan

5.3.2.1. Introduction
Quality Assurance / Quality Control Department will prepare Quality Control guidance of material
and equipments inspection that will be used during fabrication and repair work.

5.3.2.2. Purpose
Project Quality Control Plan describe work methods and inspection activities as mentioned on
Quality Project requirement. Project Quality control Plan, Inspection & Test Plan and Quality
Control procedure will be prepared to provide inspection activities as mentioned below:
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 Arrange inspection activities between Vendor, Subcontractor, Contractor,

Government and third party during fabrication, construction phase and certification
process.
 Perform inspection and test, internal or witnessed by company during fabrication or
construction phase.
 Ensure all test equipments, measurement instruments that will be used during
inspection in valid calibration period
 Perform certification of equipments that required certificate from authorize party or
Government.
 Preserve inspection and test report including non-conformity report.

5.3.2.3. Terminology
Any terminology related to QC Management plan described as
follows :
 Vendor : The company that appointed by subcontractor and approved by
company to supply part of product, performed part of subcontractor scope of work
or services for this project purpose.
 Third Party: Subcontractor subcontracted inspection company approved and
appointed to act on behalf of Migas.

5.3.2.4. Responsibility
Responsibility each member described as follows :
Quality Assurance / Quality Control Manager has
responsible:
 Ensure that Project Quality Control Plan conform to quality project requirement.
 Quality Assurance / Quality Control Department representative to make
coordination with another department during perform the project.

Inspector : Perform Quality Control activities as mentioned on the Inspection and Test
Plan, including internal test and inspection or witnessed by company, prepare and
review inspection and test record.
Document Control : To assist and support Quality Assurance / Quality Control
Manager in the administration and documentation matter.

5.3.2.5. Supporting Procedures of Project Quality Control Plan

For guidance of implementation Project Quality Control Plan during phase procurement
fabrication and erection, Quality Assurance / Quality Control Department will provide with
Quality Control procedure as follow:
 Inspection and Test Plan
 WPS/PQR & WPQT
 Another Procedure if required
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5.3.2.6. Inspection Activities

During performed of inspection activities, SUBCONTRACTOR will refer to The
Inspection and Test Plan, Customer Requirement.

5.3.2.6.1. Inspection and Test Plan

Inspection and test plan will describe inspection and test activities during
construction and commissioning phase.
Main activities of site inspection and test are:
 Documented all site inspection was performed by subcontractor and
submitted to the company for approval.
 Arrange inspection between subcontractor and company.
 Ensure welder personal and NDE operator that involved in this project and
were certified.
 Collect all inspection and test data as electrical equipment, instrument
equipment, mechanical equipment, civil work, piping, isolation painting etc.
 Ensure all measurement equipments to be used for inspection in valid
period of calibration.
 Control and monitor schedule on site, for non-destructive test, radiography
and post weld heat treatment (if required) activities.
 Support of HES Department to implement their program as during welding
process, non destructive test, radiography test, post weld heat treatment,
especially to handle and storage of radio active material.
 Verification of inspection result, documented of test result and reported to
the company.
 Perform the inspection meeting with sub subcontractor and / or company if
any problems were found during previous inspection activities.
 Inform to the company, Inspection schedule that should be attend by
company (witness point).

5.3.2.6.2. Migas requirement for WPS / PQR and WPQT

Welding procedure specification / procedure qualification record (WPS/PQR)

 Subcontractor should prepare welding procedure specifications that have
been approved by Migas prior activity started.
 Welding Procedure Qualification record that will be used by
SUBCONTRACTOR has been approved by migas.
Welder Qualification
All welder and welder operator who involved in this project should be qualified
and certified by migas.
Test Procedure
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SUBCONTRACTOR will prepare welding procedure specification for welder

qualification and should be approved by migas.

5.3.2.6.3. Control of Non Conformity Report

Non-conformity is damage, shortage of material, poor quality of material or deviation of work
that not conform to specification, drawing as project contract specification. Control activities of
non- conformity should refer this description.
Non-conformity report
If Inspector or supervisor found non-conformance item, the construction
process should be stopped and should prepare non-conformity report and (if
required) attached picture and reported.
Non-conformity will be controlled with list of non-
conformity. Corrective Action Plan
Based on this non-conformity report, subcontractor will propose
corrective action to the company with two categories,
 Use-as-Is
 Non-conformity of material or construction process permitted to continue
during deviation in line with the specification.
 Repair / rework

 Repair / rework was caused by design mistake, non-conformity

design with project specification.

 Repair / rework should be done if there are difference with

relevant specification.

 Repair / rework was need , for pressure vessel that have been
tested on shop.
Subcontractor will propose corrective action to get company
approval.
Design change request
If during construction process found the items cannot be done, or will obstruct
to another facilities, so the construction process will deviate from approval
drawing, the subcontractor will propose the design change to get company
approval.

5.3.2.7. Inspection Report

The subcontractor will use inspection / test form as applied procedure during inspection
activities at shop and site project
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5.4. Financial Management Plan

5.4.1. Introduction
The aim of emphasize of the Roll and Financial Management plan is to formulate and
recommend steps to be taken by the Project Manager related to the Integrated Tank Repair
Project, particularly to the preparation of planning, implementation and control. The formulation
of financial management plan could be described as follow.

5.4.2. Scheme of Roll and Financial Management

GOAL

Successful of Project Execution

FINANCIAL VISION
To Support Project Execution FIGURE SCHEME
OF ROLL AND
FINANCIAL
MANAGEMENT
FINANCIAL MISSION

To Provide Working Capital / Financing

For Project Execution

STRATEGY
Professionalisme of Efficiently Increase of Service
Man Power Organization

Competences & Structure and System Keep on Target / Goal

Integrity Procedure Keep on Volume
(Simplification) Keep on Schedule

FINANCIAL FUNCTION
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5.4.3. Financial Function

FINANCIAL FUNCTION

SINKIND FUND FUND ALLOCATION COST CONTROL

PERFORMANCE MANAGEMENT PERFORMANCE MANAGEMENT

TOTAL PROJECT PLANNING IMPLEMENTATION CONTROL

SYSTEM AND PROCEDURE

SYSTEM ARRANGEMENT PLAN Cash Receiving

Cash Disbursement
IMPLEMENTATION BUDGET Material Receiving
4. Sub Contractor Receiving
5. Investment Receiving
6. Import Price Calculation
7. Shipment
8. Maintenance
PROJECT MASTER BUDGET Material Usage
Overhead Application
11. Finish Good
12. Delivery of Good / Project REALIZATION
13. Progress Delivery Invoicing
14. Credit Note
PROJECT OPERATIONAL BUDGET 15. Intern Progress Q: Master Design Comply with
BASED ON SECTION BUDGET 16. Closing Order Detail Design Spec of
17. Overhead Cost Breakdown Shop Drawing Quality
18. Project Site Cost Breakdown
19. Memo of Adjustment / Correction
PROJECT CASH FLOW C: Mat’l Cost
Labour Cost Comply with
FOH Cost Project
Progress, Etc Budget
RISK’S
D: (Delivery)
Comply with Project Schedule Progress of
Good Delivery

ADJUSTMENT/REPLANNING CONTROL /
OF BUDGET TO MEET THE RESULT
QCD TARGET QCD = PLAN

NO
YES

QCD =
PLANNING
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5.5. Risk Management Plan

5.5.1. Introduction
The successful of project implementation is depend in to how to manage the risk's during project
execution, so this risks project Management plan is to provide a management to take any
necessary action based on some factors such as:
 Unit price factor
 Work volume ( BQ ) factor
 Work Schedule factor
 Exchange rate factor
 Damage factor

5.5.2. Scheme of Project Risk Management

See description figure in the attachment

5.6. Management Plan

5.6.1. Engineering Organization

 Engineering Manager shall manage all engineering activities within this project and
responsible to Project Manager.
 Discipline Engineer
Engineer shall do the design each discipline under the coordination of Lead Discipline
Engineer.
 Field Engineer
Field Engineer shall support construction activities, accommodate all modification done on
site and implemented those modifications to marked drawings will informed to Discipline
Engineer through Engineering Manager.
 Draftsman
Draftsman shall make the drawing and coordinated by Discipline
Engineer.

5.6.2. Engineering Communication

This section is implemented for communication among engineering sub-sections. All formal
correspondence with company and other will be by Project Manager transmittal letter.
Engineering Manager will conduct daily meeting to solve problem among sub-sections moreover
in interfacing problem. In case of small problem, Engineers may precede a coordination meeting
among and copy carbon shall be forward to engineering manager.

5.6.3. Document Control

 Administration
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Document Control officer also shall act as the central point of engineering document as well as
documents generated from internal subcontractor or transmitted by Company. The activities
include receiving, application of file number, distributing, expediting and releasing all engineering
documents to assure that the document will receiving by related section in same version.

 Documents Receipt
Documents may be received from outside sources such as Company and NA or
others.

 Document Identification
All engineering mail, including e-mail, telecopy, telegrams and package shall be
identified.
The Document Control shall process the original copy of each incoming document, other than
documents submitted in multiple copies (proposal, instruction manual, etc.) and the
transmittal letter or form for documents submitted in multiple copies.
Identifying shall include stamping document with the engineering routing stamp, dating the
receipt, marking the appropriate file number and indicating action and information parties in
the space provide on the routing stamp, and making required copies for action and
information parties. All documents should use numbering system as per attachment

 Engineering Management Review

Document Control shall forward the action copy of documents to the Engineering Manager who
will review the document package. He will pay particular attention that the proper file
numbers are assigned and distribution to the related party.
The complete document package shall be returned to the Engineering Planning & Control for re-
routing and filling of the original documents, also distributing if necessary.

 Document Traffic
The copy of documents transmitted to the responsible action party shall be marked with the
word
ACTION and route directly to the action
party.
The responsible engineer is responsible to review the document and provide the action as
required. The responsible engineer could get additional information from other Lead engineer
under coordination of the engineering manager.

 Engineering Reference Documents

Documents having only temporary information or which are used for reference purpose in
general will not be filed in the engineering file.

 Outgoing Documents
Document Control shall record and forward documents include verification of file numbers,
preparation of documents for mailing, completion of Engineering internal distribution and
distribution of copies to the engineering file.
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 Manuscripts and Preliminary Drafts

Manuscripts and preliminary draft of specifications, reports and other such documents will
not normally be maintained in the project files.

5.7. Procurement Management Plan

5.7.1. Introduction
In order to achieve the aim of project, the procurement section shall be divided into four sub
sections as on organization chart.

5.7.2. Job Description

The aim of this written job description is to clarify all jobs and duties to avoid confusion and
overlap among procurement section.

 Procurement Manager
 Procurement Manager has responsible for the procurement of all material,
equipment, electrical and instrumentation as required.
 Procurement Manager shall manage all procurement activities and responsible for all
material supplied has bought and ready for installation and construction.
 Procurement Manager shall sign all correspondence of procurement activities.

 Purchasing Officer
 Material requisition for quotation to vendor for sourcing.
 Evaluation, clarification and negotiation of quotation with vendor.
 Issuing LOI or P/O and inform to QC and traffic for preparing.
 Verification of vendor invoice.

 Traffic & Expediting

 Expediting of purchase requisition material or equipment.

 Inventory of the delivery point.

 Arranging of the transportation and material handling.

 Issuing the packaging & transportation method.

 Reporting of expediting report.

 Monitoring of arrival material or equipment.

 Issuing transportation schedule and volume.

 Issuing cargo insurance.

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5.8. Logistic Management Plan

5.8.1. Job Description

Logistic Manager has responsible for inventory control of material, tools, consumable, and
equipment start from receiving materials etc, up to storage at warehouse.
Warehousing of the material etc, could be indoor / outdoor.

5.8.2. Inventory Control

Inventory control is arrangement of method material, tools, consumable and equipment in

storage to support site activities I e :
 Arrangement of arrival / shipment material schedule according to Master Schedule
including preparation of the storage plan.
 Preparing progress control of receiving material etc according to procurement schedule.
 Arrangement material, tools and consumables storage system both indoor and outdoor
warehouse.
 Classification of special material etc to be storage at special rack / box.
 Controlling the quantities of materials / consumables as the necessity to be report weekly
 To minimize waste of material

5.8.3. Warehouse
Indoor warehouse is storage place to protect of material, tools and consumables from weather to
prevent material from damage or corrosive.
All material, tools etc should be identified base on its type & size, prior stored on the racks or put
on the floor according to storage system at warehouse as
below
Equipment for large size as panels, pumps, generator power, fittings etc should be stored on the
floor indoor and its gave distance from the floor around 15 cm.
Inflammable material as chemical liquid, painting, gas bottles should be stored at special
place.

5.8.4. Outdoor Warehouse

Outdoor warehouse is open storage place which will use for storing large size of raw material as
pipe, fittings, material profile, cable etc.
Placement of raw material in outdoor warehouse to be prevent contact with ground and its gave
distance around 20 cm from the ground.

5.9. Health, Environmental and Safety Management Plan

This HES Management Plan provides for employees and subcontractors with the basic safety
operating guidelines and rules to be used in their daily activities. The primary objective is to
document the common safety and occupational health guidelines and rules that form the
foundation of all Subcontractor activities, in compliance with the requirements of government
and Company regulations.
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The purpose of this HES Management Plan covers all safety requirements, identify the steps to be
taken by Subcontractor so as to safeguard health and welfare of all Subcontractor employees and
achieve the standards required under the Company safety procedures.

5.10. Security Plan

5.10.1. Task of Securities

1. Security system is planning for all installation area and material including report and
taking over system.
2. Making guard, especially at Break time or Night
3. Investigation if any accident
4. Coordination with other team
5. Reporting to HES Manager

5.10.2. Facility
1. Handy Talky
2. Fire Extinguisher
3. Fire Protection & Breathing Apparatus
4. Pick Up Mobile
5. Etc

5.10.3. Location
1. Office
2. Project Area
3. Etc

5.10.4. Job Description

1. Guard
2. Patrol
3. Inspection
4. Investigation
5. Warning
6. Report

5.11. Mobilization of Equipment and Manpower

Please see the attachment Mobilization of Equipment Schedule and Mobilization of Manpower
Schedule.
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5.12. Front End Schedule

The purpose of this schedule is to describe the detail plan for the first three months of the project
(detail 90 days window), before the overall detail plan has been completed, especially for the multi
year project. It lists all major activities that must be started and or completed within the three month
time period. For the short period project, PM has authority to determine the necessity of front end
schedule, unless Client request to do so.
PM and Project Team Member collect all related information such
as:
 Contract Document
 Project Goal and Objective
 Scope of Services
 Work Breakdown Structure
 Risk assessment
 Limitation and information from each discipline
 Subcontractor / vendor schedule
 Man-hour estimate from each discipline
 Manpower information
 Fabrication/installation method
 Equipment availability
 etc

Each project discipline will breakdown the activities in Mater Schedule by top-down approach into a
detail activities , determine dependencies and estimate the duration for each activities (see Work
Breakdown Structure describing the detail activity for , up to level 3 (sub-system)). Project Control
assisted by each project discipline will summarize the detailed activities and check the front end
schedule then compare the summarized duration with the total duration of a given activities in the
master schedule. Project Manager will review the front end schedule and finalize it for approval , see
attachment.

5.13. Project Schedule

The purpose of this schedule is to describe the overall project detail plan (schedule level 2), ensuring
the work will be carried out according to the allocated project timeframe. The process to prepare the
project schedule is the same as the preparation of front end schedule. Once the Project Manager
approves the project schedule, it defines as a baseline time used for controlling the project see
attachment.

5.14. Resources Plan

Project Manager and Project Team Member collect the information as
follows:
 Project Schedule
 Resources Breakdown Structure (see attachment)
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 Manpower : Estimate man-hour needed for each activities to include rates

 Material : Quantity needed for each required activities
 Construction Equipment : Amount and duration needed for each construction activities (see
attachment )
 Definite factors such as resources availability, physical constraint or logistic due to project location,
manpower density, productivity, etc.
 Resources Plan Form (see attachment )
Base on the above information, each project discipline shall update manpower, material
and equipment plan for each activities in project schedule.
Project Control assisted by each project discipline will summarize the manpower, material and
equipment into Resources Plan Form. Project Manager will review the Resources Plan Form,
and approve.

5.15. Project Budget

The project budget which has already been defined by management is now used for internal
purposes. PM should detail the project budget according to the following steps.
Project Manager and Project Team Member collect information such as:
 project schedule
 CPM budgeting structure
 breakdown of contract price
 calculation of cost estimate for each activities during bid preparation:
 Project Management which consist of Project Supervision, Procurement Services, Accounting
Services, Bid Cost and Running Cost
 Engineering
 Supplies, usually known as material
 Transport, usually known as material handling and equipment
 subcontractor
 Direct Manpower
 Site Expenses consist of Administration & Supervision Expenses, Internal/External Equipment
Rental & Spare Parts, Small Tools, Consumables, Spare Parts, etc
 Commissioning & Start Up
 Other Charges
 Estimate Summary Form which is the total calculation of all cost estimate for each activities
Based on the above information, Project Control assisted by each discipline will detail the project
budget for each activities and prepare the Project Execution Budget Summary Form. The cost code
is always prefixed with the project number followed by project cost account number.
Project Manager shall review the Project Execution Budget and finalize for approval.
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5.16. Projected Cash Flow

The projected cash flow is used for internal purpose in giving the overall figure of the comparison
between account receivable (payment from Client) and account payable (project costs including
payment to vendor) on a monthly basis. PM should prepare the projected cash flow according to the
following steps.
Project Control collect the information as follows:
 Project Schedule
 Project Budget
 Resources Plan
 Contract Term of Payment with Client
 Contract Term of Payment with subcontractor
 Vendor Quotation or CPM Purchase Order
 Contract or Proposal from subcontractor
 Contract price with Client

Base on the above information, Project Control shall prepare Projected Cash In Flow with
the following step:
 In the absence of a cut off date specified in contract document, Project Control
shall determine the Cut off Date for Monthly Report along the project period and propose to
the Client.
 Check the contract document regarding the statement of period time between the
issuance of invoice up to the payment from Client, for example, the payment is at least
one month after the received invoice.
 Estimate the overall plan progress in every cut off date base on the schedule and budget.
 Estimate the total amount of the invoice in every cut off date and when it will be
paid/transferred by the Client.
 Check if there is a reduction cost upon the progress claim.
 Estimate the total cash in flow in every month for every project cost account

Project Control shall also prepare Projected Cash Out Flow with the following
steps:
 Based on the breakdown of project budget, Project Control shall estimate the cost out
for every item of cost account .
 For project management, the value of manpower is to multiply the total man-hour/man-
month by weight rate from those manpower, and the value of expenses is base on project
budget that is distributed each monthly accordance to the schedule.
 For engineering, the value of manpower is same as manpower of project management and
the value of expense is same as expenses of project management.
 For supplies/material, the value is the percentage of payment (term of payment) by
budget for every material. Check also when it will be paid/transferred by the Client.
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 For transport, the value is based on project budget that is distributed into each month in
accordance with the schedule of material and equipment.
 For subcontract, this is the same as material notice the percentage of payment is depend on
the subcontract’s progress in each month.
 For site expenses, the value of construction equipment is same as subcontractor, the
value of small tools/consumable is same as supplies and the value of expenses is same as
expenses of project management
 For commissioning & start up, the value of personnel is same as manpower, the value
of tools/consumables is same as supplies and the value of expenses is same as expenses
of project management.
 For other charges, the value is same expenses of project management.
 Estimate the total cash out flow in every month for every project cost account
Project Control shall summarize the total cash in flow and cash out flow into Projected Cash
Flow
Form. Project Manager shall review the Projected Cash Flow and finalize for
approval.

5.17. Project Procedures

Upon completion of Internal Project Kick off meeting, the Project Manager assisted by Project Team
Members will prepare project procedures for internal and Client purpose.

5.17.1. Prepare Project Execution Procedure Check List

Based on the project requirement, Project Manager shall complete the Project Execution
Procedures Check List, by determining and filling in the column as required (yes or no), the
column of purpose (internal or client) and the column of responsibilities. Project Administration
Officer or someone assigned will assist Project Manager to get the Company and Project
Procedures from Quality Manager. The check list will then be distributed to the Project Team
Member to be reviewed, attached by the related Company/ Project Procedures. The purpose of
the review is to ensure which procedure is applicable to any development required or, which
ones need further development as project requirement arises and which are not on the list. The
result of the review will be filled into the column of remark. In case the related person
not available or even not capable to do so, it could also be filled into the remarks column. If
not on the list, Project Team Member shall add the procedure title and the other column. PM will
then finally review the check list for approval and determine the target date for each
procedure. Project Administration Officer will assign a number to all procedures stated in Project
Execution Procedure Check List. Every Project Procedure for client purpose has to meet
with client document approval process this will be determined by them. The procedure for
internal purpose will be emphasized for internal coordination and communication.

5.17.2. Prepare Project Procedures

Each Project Team Member shall prepare the project procedures according to Project Execution
Procedure Check List and to meet the document approval
process.