GPM - Arabian Gulf Chapter
Transcription
GPM - Arabian Gulf Chapter
www.pmi-agc.com Advancing the project management profession in the Gulf Region SEPTEMBER 2014 The 3rd PMI AGC & DMS Energy Forum Debate Set New Standard for Tackling Energy Sector Challenges • PMI EMEA Leadership Institute Meeting • Seven Steps to Strengthen Your Bond with Your Sponsor • The Importance Of Effective Project Management in the Oil & Gas Industry 2012 - 2015 Board of Officers Chapter President Hashim Al-Rifaai President – Kuwait President - Bahrain Iman Al-Gharabally Abdul Majeed Al-Gassab President – Saudi Arabia President - Oman Samir Ashour Mohamed Al-Ghanboosi President - Qatar SVP - Governance & Policy AbdulRahman Hasna Dr. Lina AbouDheir SVP - Marketing & Sponsorship SVP - Volunteer Management Ashraf Arafeh Rami Al-Haddad SVP - Certification & Education SVP Membership Imran K. Malik Hatem Shabaan Chief Administrative Officer (CAO) Salim Bhuria Making project management indispensible for business results. PMI-Arabian Gulf Chapter Mailing Address P.O. Box 4316 Shuwaikh – 70654 Kuwait Physical Location Address Fintas Towers, Ghalia Building, 2nd Floor, Flat No. 205 Coast Street, Mahboula Advancing the project management profession in the Gulf Region 30 www.pmi-agc.com PMI EMEA Leadership Institute Meeting Advancing the project management profession in the Gulf Region SEPTEMBER 2014 The 3rd PMI AGC & DMS Energy Forum Debate Set New Standard for Tackling Energy Sector Challenges • PMI EMEA Leadership Institute Meeting • Seven Steps to Strengthen Your Bond with Your Sponsor • The Importance Of Effective Project Management in the Oil & Gas Industry On the cover: 3rd PMI-AGC & DMS Energy Forum Debates Seven Steps to Strengthen Your Bond with Your Sponsor 36 Migrating For Better 42 The Importance Of Effective Project Management in the Oil & Gas Industry CONTENTS 4 PRESIDENT’S MESSAGE 5 EDITOR-IN-CHIEF’S MESSAGE 6-17 NEWS MEMBER’S SUBMISSION 42-47 Migrating For Better A Case Study from the Project Management Perspective to a Data Migration Project in a Multi Brand Fashion Retail Enterprise FEATURE STORY 18-27 The 3rd PMI-AGC & DMS Energy Forum Debate Set TECHNICAL 49-50 The Importance Of Effective Project Management in the 28 ADVERTISEMENT 51-56 Industrial Gases New Standard for Tackling Energy Sector Challenges Bapco Makes Giant Leap with Waste Water Treatment Plant Launch 30-34 PMI EMEA Leadership Institute Meeting INTERNATIONAL FEATURE 36-39 Seven Steps to Strengthen Your Bond with Your Sponsor 40 Most Prevalent PMO Frameworks and Their Primary Functions 41 Dealing with the Aspirations of Your Team Understanding others’ needs helps drive everyone in the right direction. Oil & Gas Industry PROJECT REPORT 58-59 Bahrain List of Projects ACTIVITIES 60-63 PMI AGC Conference 49 PRESIDENT’S MESSAGE Dear Readers, I’m delighted to report that the Oil & Gas Technical Exchange Forum( PMI-AGC , DMS), which was held 2-3rd Sept. 2014 in Bahrain was again a great success, and surpassed our previous records. The forum, which is an annual event in its 3rd year, presents topics related to the project management business and allows the audience to evaluate the pros and cons of announced motions, then vote on favor or against these motions. The presence of Sheikh Mohamed K. Al-Khalifa (CEO Nogaholding) and Mr. Adel Al-Moayed (Chairman Bapco) was testament to their interest and to the value the event brings to participants in this region . We always appreciate the time and sponsorship such top executives afford our chapter. The next debate is scheduled to take place next year in the UAE. I am also delighted to announce that we have 2 new SVPs who joined the PMI-AGC Board: Mr. Samir Ashour, President KSA region; and Mr. Hatem Shabaan, SVP Membership. Both gentlemen are long-time members of AGC and have served the chapter well. We assure our members in Saudi that with this new team, including Eng. Mohamed Abdulaal (from Jeddah), they will see a noticeable difference in the frequency and quality of services offered. Also, the Board has approved the nomination of Mr. Mohammed Khalifa to be AGC’s PMIEF Liaison. Unfortunately we also had to bid farewell to four of our officers. They were: Mr. Ibrahim Khader (President KSA Region), Mr. Wael Al-Jasem (President Kuwait Region), Dr. Khaled Naji (President Qatar Region), and our treasurer Sam Messih. We thank them for their volunteering efforts and leadership. They all served the chapter commendably. Our Senior Vice Presidents have been working diligently in their respective areas of responsibilities. I am sure that you have begun to feel the difference. We are on track in terms of PDUs offered, we are about to introduce new offerings and are working on streamlining our operations. We have also concluded MOUs with BIPA from Bahrain, and conducted organizational maturity assessment to a large company in Riyadh. We are putting the final touches on the PMIAGC “Project of the year” award, and the “Best PMO implementation of the year” Award. Furthermore, we have standardized the chapter’s Balanced Score Card across all regions and have provided for it to be updated online. SVP Certification & Education, Mr. Imran Malik has initiated an e-learning program. This program has two segments. One segment is to launch 10 webinars approved by PMI worth 20 PDUs developed in collaboration with MILE & Saudi Knowledge Economic City. These would be broadcasted live to PMI-AGC and MILE members through an interactive multimedia platform for 10 weeks; starting September until December 2014. In addition, we will launch “PMP in 28 days” Handbook. A guide for aspiring PMP’s. Our SVP Volunteer Management is about to launch a smartphone application through which members can view and apply for volunteering positions, which will be shared with each of the Regional Presidents. HASHIM AL RIFAAI President, PMI Arabian Gulf Chapter “The forum was a great success, and surpassed our previous records. The forum, which is an annual event in its 3rd year, presents topics related to the project management business and allows the audience to evaluate the pros and cons of announced motions, then vote on favor or against these motions. We always appreciate the time and sponsorship such top executives afford our chapter.” As we are maturing, I felt the need to have seasoned advisors assist me in prioritizing and following up on the many wonderful suggestions and activities brought to the board’s attention. I have therefore decided to form a small PMI-AGC Advisory Group comprised of PMI members. Their main task will be to assist the chapter president in developing roadmaps & provide advice in areas of PMI Certification, development, and enhancing internal capabilities. I would like to remind everyone of two upcoming main events: the first is PMI’s North American Conference, which will be held in Phoenix, Arizona from October 26-28, 2014. The second is our own bi-annual PMI-AGC International Conference and Exhibition, which will be held in Bahrain from January 19-21, 2014. Please mark your calendars and help us attract participants, as this conference will have many new topics and will feature world-known keynote speakers. As Eid AI-Adha is just around the corner, I seize this opportunity to wish all a very peaceful and happy Eid. Best regards, Hashim PMI-AGC GULF PROJECT MAGAZINE 4 EDITOR-IN-CHIEF’S MESSAGE Dears PM colleagues and readers, I would like to wish all an Eid Mubarak. The magazine team has been working hard to put together another excellent issue with many informative and technical articles on different topics, news and stories on Project Management. The feature story picks up on the successful 3rd PMI-AGC & DMS Technical Exchange Energy Forum that was recently held in Bahrain. This forum was hosted by Bapco and sponsored by major companies in the gulf region. We cover in details the topics debated and the motions voted on in the forum. We also explore the 2014 Leadership Institute Meeting as PMI-AGC president, Hashim Al-Rifaai, shares his experience in attending the meeting held in Dubai during July this year. A. MAJEED AL-GASSAB President, PMI-AGC Bahrain Region Editor-In-Chief, PMI Gulf Project Magazine “The feature story picks up on the successful 3rd PMI-AGC & DMS Technical Exchange Energy Forum that was recently held in Bahrain. This forum was hosted by Bapco and sponsored by major companies in the gulf region. We cover in details the topics debated and the motions voted on in the forum .” We encourage our members to write and send articles in all phases of project management. I cannot stress the importance of your contribution to the community and the success of the magazine. The chapter will always be grateful to the members for their part in helping us promote the practices of project management for the benefit of our members, readers and the advancement of the PM profession in the region. As you can see in body of this edition, we have designated pages for advertisement. Please refer to page 64 for advertising rates. You can continue to submit your articles and advertisements to us, please email [email protected] or contact Emad Naeemi on emad@ pmiagc.bh for any additional information. I sincerely hope this edition proves useful in improving the readers’ project management skills. Happy reading! Majeed EMAD NAEEMI Co-Editor-In-Chief, PMI Gulf Project Magazine Emad Naeemi is the Director of IT & Publications and is responsible to plan, coordinate, direct, and design all IT activities of PMI-AGC Bahrain region. Emad Naeemi also serves as a full time Strategy and PMO Officer with Bahrain Airport Company and is heavily engaged in projects across different industries. You can reach Emad Naeemi by email at: [email protected] PMI-AGC GULF PROJECT MAGAZINE 5 GPM NEWS Saudi Arabia Saudi Aramco Commences Work on Ras Tanura Refinery Ras Tanura is the oldest refinery on the Persian Gulf coast, located near the industrial port city. It has a crude distillation capacity of 550,000 barrels per day (bpd) and it is owned and operated by the state-owned oil company, Saudi Aramco. The majority of the products produced by the refinery are supplied to Dhahran bulk plant for domestic use, while the remaining is exported. The refinery began operations in September 1945 with an initial production capacity of over 60,000 bpd. It has since then undergone a number of expansions, which added new equipment such as fluid hydro-former for high-octane gasoline production (commissioned in 1955), a diesel de-sulphurization unit (commissioned in 1957), a special products blending facility, and a refrigerated liquefied petroleum gas (LPG) plant. The company is currently upgrading its domestic refining capacity to lower the sulphur content of its downstream output and diversify the amount of refined products it manufactures. In July 2014, Aramco started pre-qualifying companies for re-tendering the “clean fuels” and “aromatics” packages of the refinery. As part of the process, solicitations of interest have been sent out to international engineering, procurement and construction (EPC) contractors. A full tender is expected to be released by September 2014, with contract awards scheduled for the first quarter of 2015. The packages are being re-tendered with a revised scope that could see the paraxylene production facilities dropped from the programme to cut costs from the budget. Aramco initially launched the $2.6 billion project to improve the environmental friendliness of the plant. The scope of works PMI-AGC GULF PROJECT MAGAZINE 6 under the project included carrying out front end engineering design (FEED) services for the inside and outside battery limits, and carrying out modifications to the refinery in line with environmental regulations. Ras Tanura is a city in the Eastern Province of Saudi Arabia located on a peninsula extending into the Persian Gulf. The name Ras Tanura applies to an industrial area further out on the peninsula that serves as a major oil port and oil operations center for Saudi Aramco, the largest oil company in the world. Saudi Aramco has also built numerous artificial islands in Ras Tanura for easier docking of modern oil tankers. In addition, offshore oil rigs and production facilities have been constructed in the waters nearby, mostly by Saudi Aramco, Schlumberger, and Halliburton. Source: DMS Database GPM NEWS Saudi Arabia Middle East a Strategic Foundation for Hydrocarbons Sector The demand for oil and gas shows no sign of dwindling around the world as reserves for oil and gas seems to grow faster in every region. Despite high prices and efforts to develop alternatives such as renewable energy, global oil consumption rose from 76.9 million barrels per day (bpd) to 91.3 million bpd since the turn of the century. In 2013 alone, consumption in the Middle East increased by 1.4 per cent to 1.4 million bpd, demonstrating the forte of hydrocarbon reserves around the globe. In terms of oil reserves, the Middle East is second to none. This “oil miracle” of the world has been shaped by a set of favorable factors, some global and others local, inscribed in the geologic history of the region. Consumption of gas also climbed from 2.4 trillion cubic metres in 2000 to more than 3.3 trillion cubic metres in 2014. However, although global reserves of oil and gas have increased faster than production, questions have been raised over the level of supply as producers and consumers try to cope with an unrelenting growth in demand. Christof Ruhl, Group Chief Economist at BP, has simply summed it up as “One trend that has not changed is reserves growth,” as proven oil and gas reserves are up 27 per cent and 19 per cent respectively over the past 10 years alone, despite production growth of 11 per cent and 29 per cent. Such relatively short timeframes will increase the pressure on governments to diversify their economies While the picture for the region as a whole is broadly positive, some countries with the largest reserves that also have the best reserves-to-production (R/P) ratio are of course in far stronger positions than others. For example, Saudi Arabia’s crude reserves of some 265.9 billion barrels are expected to last more than 63 years at current production rates, easily long enough to keep the present generation in comfortable lifestyles. On the other hand, the region’s largest holders of gas reserves are Iran and Qatar, with 18.2 per cent and 13.3 per cent respectively of the global total. Only Russia has greater volumes of proven reserves. Despite the expansion of its liquefied natural gas (LNG) exports over recent years, Qatar still has plentiful volumes to keep it going for more than 100 years. Source: DMS Database PMI-AGC GULF PROJECT MAGAZINE 7 GPM NEWS Saudi Arabia Construction Works in Full Swing on Riyadh Metro Arriyadh Development, Authority (ADA), which is building a light rail transit (LRT) network in the capital city of Riyadh, has revealed that construction works on all three of its packages are in full swing to begin operations in late 2018. The metro is a part of the Riyadh Public Transport Project (RPTP), which will be the largest public transport project which comprises construction of a metro, a bus system and other transport services in Riyadh. The $9.5 billion development, which is designed to ease traffic congestion and provide alternative and safer public transportation, is part of Riyadh’s Public Transport Project (PTP) plan that was approved by the Council of Ministers in April 2012. The metro is part of Riyadh’s plans to upgrade its transport infrastructure to cope with its rapidly growing population and the plan has been prepared by the High Authority for the development of the city of Riyadh. Riyadh had a population of 5.7 million in 2012, which is expected to increase to eight million by 2030. The new metro system will fulfil the demands of growing population as well as reduce traffic congestion and improve air quality. The project is divided into a six-line metro project with five major design and build packages. Lines 1 and 2 are being built as one package, while lines 4, 5 and 6 are clustered as one package with the line three being executed as a single package. Each package will include the supply of rolling stock. The project will have an execution period of five years and an optional maintenance service period for the next ten years. It is expected to create about 15,000 jobs in Saudi Arabia. PMI-AGC GULF PROJECT MAGAZINE 8 The RPTP project will also include construction of a bus network, which will consist of an 85 kilometre three-line Bus Rapid Transport (BRT) network that will connect major towns in Riyadh. All stations of the metro will be integrated with the bus network. On the other hand, the metro will be 178 kilometres long with six lines and 85 stations including underground, elevated and at-grade sections. •Line 1 (Blue Line) will run from Olaya Street to Al Hayer Road. It will be 44 kilometres long and will cover 39 stations. •Line 2 (Green Line) will connect King Abdullah Road to the King Fahad Stadum. It will have 14 stations and be 22 kilometres long. • Line 3 (Red Line) will run from Madina Al Munawra to Rahman Al Awal Road. It will be the longest line of the metro, at 45 GPM NEWS kilometres. • Line 4 (Orange Line) will run from the King Khaled International Airport to the new King Abdullah Financial District (KAFD). • Line 5 (Yellow Line) will start from the King Abdul Aziz Road. It will be 26 kilometres long and have 26 stations. • Line 6 (Purple Line) will connect Abdul Rahman bin Ouf Street to the Shaikh Hassan bin Hussain bin Ali Street. It will be 30 kilometres long and will feature nine stations. Metro Station. The Riyadh metro will be 178 kilometres long with six lines and 85 stations including underground, elevated and at-grade sections. ADA selected three architecture firms to design and build three major stations of the metro. The three stations are the Olaya Metro Station, the Downtown Metro Station and the King Abdullah Financial District Snohetta is responsible for designing the Downtown station (Qasr Al Hokm), which will be located between the Al Madinah Al Munnawarah Street and King Faisal Street. The station will act as a transport hub for the Gerber Architekten is designing the Olaya Metro Station, which will be located at the intersection of the Metro Lines 1 and 2. The station will feature a public plaza, a large entrance hall and an open concourse. The station will have a gross floor area of 68.85m² and a gross volume of 387m³. ADA is expected to invest $20m in the station. metro lines 1 and 3. Zaha Hadid is designing and building the King Abdullah Financial District (KAFD) Metro Station. The station is located at the east of the Northern Ring Road and slightly west of the King Fahad Road. It will serve the lines 1, 4 and 6 of the metro. Alstom will provide its automated driverless metro system for the project under a $1.5 billion contract. They will also provide 69 metro trains, as well as supply Urbalis signalling system, a train braking energy recovery system called HESOP and Appitrack - a new technology to install tracks faster. Renewable energy will be the source of power for all the metro stations. Saudi Arabia Saudi Aramco Commences to Boost Gas Production State oil giant Saudi Aramco’s plans to boost gas production in order to help meet rising domestic fuel demand has led them to the construction of a new gas plant at the Al-Fadhili oilfield. Estimated to have a processing capacity of one billion cubic feet per day (cfd) of sour gas, the new plant will process gas coming from two fields, namely Khursaniyah and Hasbah. Aramco already has oil and gas processing facilities in Khursaniyah, while Hasbah is one of the two non-associated offshore gas fields that will feed gas to the Wasit field. The gas in Hasbah contains high levels of hydrogen sulphide, nitrogen and carbon dioxide. The Fadhili plant, which is scheduled to commence operations in 2018, will be able to deliver 520 million cfd of gas to the market The project is part of Aramco’s plans to ramp up operations to supply the kingdom with gas for both power generation and industrial use as they look to produce 15 billion cfd of gas for domestic use by 2017-18. In July 2014, Aramco has started the pre-qualification process on the Fadhili gas plant. All the international engineering, procurement and construction (EPC) contractors that were invited to express an interest in pre-qualifying have been given a deadline of 18 August to submit the required documents. Aramco has also revealed that they have split the scheme into three package: • Sulphur recovery unit (SRU) • Process utilities • Gas inlet and treatment The contract model is expected to be a lump-sum turnkey (LSTK) and will be both in-kingdom and out-of-kingdom, meaning that a percentage of the engineering work and project management can be carried out overseas. PMI-AGC GULF PROJECT MAGAZINE 9 GPM NEWS Saudi Arabia Increase in Construction Activity Lifts Saudi Arabia’s Equipment Trade As mounting government expenditures strengthen the Kingdom’s construction market, Saudi Arabia has seen an upsurge in construction activity in the year 2014 that has also enhanced construction plant and equipment sales in the Kingdom. Global construction demand is expected to grow at a yearly rate of 6.5% through 2015 to reach a value in excess of $170 billion. Equipment sales are forecast to rise after an unprofitable period between 2008 and 2010 in EU and North America. Growth in other regions such as Asia-Pacific and Middle East North Afric (MENA) is expected to slow through 2015 in tandem with construction and mining activity. In Saudi Arabia, the construction equipment and machinery industry has been hit by slow economic growth following the global financial crisis, which took a particular toll on global construction activity. Worldwide demand for construction equipment and machinery suffered a huge falling off after the 2008 economic downturn. Demand fell for three years running as investment in construction slowed. However, over the past year, Riyadhbased Zahid Tractor, one of Saudi Arabia’s biggest construction equipment companies, which supplies machinery from the US’ Caterpillar, Sweden’s Volvo and France’s Renault, said it had witnessed strong sales growth in the kingdom, fuelled by the launch of government-driven projects in education, infrastructure, and transportation sectors. Saudi Arabia was the least impacted in the aftermath of the financial crisis and therefore the industry remained strong. In recent years, the construction sector has been one of the highest growing sectors in the Saudi economy due to the massive government expenditures that are driving development projects in various cities and sectors of the economy. Japan’s Komatsu reported a 86.6 per cent jump in sales in the Middle East over the past year, which it attributes, in part, to the formation of a joint venture between local Abdul Latif Jameel Group and Japan’s Construction Contracts Awarded in Saudi Arabia 16000 14000 12000 10000 in million $ 8000 6000 4000 2000 0 2009 2010 2011 Sumitomo Corporation to distribute Komatsu heavy equipment brands in the kingdom. Germany’s Man Group says its Middle East operations recorded a 40 per cent increase in sales in the first quarter of 2014 in its truck segment, with Saudi Arabia being a key market. Growth is driven by growing demand, which in turn is fueled by the governmental release of projects in various sectors of the PMI-AGC GULF PROJECT MAGAZINE 10 2012 2013 2014 economy such as education, infrastructure, railways, transportation, mining and residential projects. But the boom is not only driving an increase in the volume of construction projects in the kingdom. It is also spawning a new generation of Saudi Arabian construction companies, as local entrepreneurs start up new businesses to tap into the emerging opportunities in the kingdom. GPM NEWS Saudi Arabia Saudi Arabia the Undisputed Leader of Future Infrastructure Projects Construction has always been the largest single sector in the GCC. Since 2006, over $500 billion worth of civil construction projects have been awarded in the six GCC states. Even more astounding is that fact that the total planned and un-awarded construction projects exceeds $1.09 trillion, roughly two-thirds of the GCC’s entire annual GDP. has witnessed almost $90 billion worth of contracts awarded in the first six months of the year. This investment is being driven by a significant population growth, particularly in the areas of social housing, education and healthcare. Consequently, private sector and real estate have now regained the confidence it lost in 2009 as residential prices are now soaring close to their historical peak with the launch of new projects every week. Saudi Arabia is the spearhead in terms of future projects with a pipeline of more than $619 billion followed by the UAE and Qatar with $225 billion and $133 billion respectively. The largest sector is construction, with 36 per cent of all contract awards in the last six years followed by oil, gas and power. The top ten biggest contracts set to be awarded in 2015 are all in the GCC, demonstrating the importance of the six-country bloc to the region’s construction companies. The four main areas covered by the upcoming awards are leisure facilities, real estate, hospitals and cultural centres. More than $1.1 trillion worth of contracts have been awarded in the GCC alone over the past 10 years. In 2013, a record total of $156 billion worth of deals were agreed, while 2014 However, Saudi Arabia and its GCC partners are expected to face pressure over the coming years from a drop in oil prices projected to result from increased global energy capacity among non-Opec producers and from unconventional sources such as US shale gas. Aware that they have a limited opportunity to benefit from high oil revenues, GCC governments are rapidly accelerating efforts to invest in social infrastructure and job creation programmes to support population growth. On a broader perspective, there are more than $750 billion worth of planned and un-awarded projects driven mainly by oil and gas, construction and power investment throughout the MENA region. The largest market has been Iraq, with $104 billion worth of the deals, followed by Algeria with $96bn and Iran with $94billion. As the value of projects being planned in the GCC rises to more than $1.24 trillion, local and international contractors will be able to size markets and sectors as well as prepare the future strategy and identify new markets to penetrate. Saudi Arabia Emaar Square – An Exceptional Commercial Destination in Jeddah Emaar Middle East, the developer of several iconic projects in Saudi Arabia, has unveiled the most prominent and exceptional commercial real estate development in Jeddah that brings unmatched value for businesses seeking to set up or expand their operations to the next level in the Kingdom. Emaar Square, the dedicated commercial precinct in Jeddah Gate, is located in the Crescent Plaza. It is the flagship mixed-use project by Emaar Middle East, and one that opens doors to a brand-new office experience that blends luxurious lifestyle amenities with an ultra-modern business environment. The commercial project would bring the worldclass ‘Emaar Square’ office developments in Dubai, Istanbul and Cairo to Jeddah. Industry sources have also revealed that there have been an overwhelming response from international investors. In August 2014, Lebanese firm Arabian Construction Company has won a contract to construct three buildings at the Emaar Square development. The first buildings from the development are scheduled to be handed over to customers in 2016. The three dedicated office buildings of five floors each, which make up the Emaar Square commercial development, are uniquely set around Crescent Plaza, a thriving lifestyle destination with luxury retail outlets and an array of Food and Beverage choices. At the heart of the Plaza is a spectacular water feature with the Emaar Square offices opening to dazzling views of the fountain. Elegantly landscaped, Crescent Plaza and Emaar Square together define a never-before-seen urban space in the city. Fred Durie, Chief Executive Officer, Emaar International, said: “Emaar Square is our prestigious commercial precinct within Jeddah Gate, which is today one of the most sought after lifestyle destinations. The dedicated office precinct complements Jeddah’s international status as a business hub, and offers businesses across diverse economic sectors, a world-class environment to define their individuality. It also meets the gap in Jeddah for a vibrant ‘Central Business District’ that offers luxury commercial real estate space.” “Designed to be one of the most prestigious commercial addresses in the Kingdom, Emaar Square at Jeddah Gate will appeal to Saudi and international businesses for their regional headquarters or boutique offices. The central location, superior amenities, proximity to modern homes and luxury lifestyle attractions make Emaar Square the first choice for businesses.” he added. The launch of Emaar Square draws on Saudi Arabia’s international reputation as a fast-growing business destination, with the Kingdom ranked at 26 in the World Bank’s Doing Business Index 2014. With the economy set to grow 4.4 per cent in the second half of 2014, the massive investments in infrastructure development by the government is further boosting the business sector. PMI-AGC GULF PROJECT MAGAZINE 11 GPM NEWS Kuwait Construction works in full Swing on KJO’s Onshore and Offshore Packages at the Hout Field after months of delays and holdups, several companies presented their bids. In February 2012, McDermott International was awarded the EPC contract for the offshore package and Daewoo Engineering and Construction Company was awarded the EPC contract for the onshore package. Sixty per cent of the construction works has been completed and the project is slated for completion in the fourth quarter of 2014. Estimated to be around $400 million, Al Hout Field will consist of two packages: • Al Khafji Joint Operation (KJO) - Al Hout Field - Onshore and Offshore Renovation Onshore Package • Al Khafji Joint Operation (KJO) - Al Hout Field - Onshore and Offshore Renovation Offshore Package In the second quarter of 2011, Penspen has been awarded the PMC contract. Several pre-qualified companies were invited to submit the bids for the EPC contracts on both the offshore and onshore packages. However, The scope of the offshore package consists of more than 600 tonnes of structures including a tripod jacket, deck and flare tower and 42 kilometers of 24-inch subsea pipeline and the scope of the onshore package will be the construction of crude and gas treatment, Gas and NGL collection and distribution facilities. KJO was set up by Aramco Gulf Operations, a subsidiary of state oil firm Saudi Aramco, and Kuwait Gulf Oil Company. The two share the Al Khafji, Lulu, Hout and Dorra fields, which are located in the Neutral Zone between Saudi Arabia and Kuwait. Source: DMS Database Kuwait EPC contracts awarded to Kuwait’s Gathering Centre 29, 30 and 31 Gathering Centre 29, 30 and 31, which is being constructed by Kuwait Oil Company (KOC) has awarded the engineering, procurement and construction (EPC) contract to Petrofac, Larsen & Toubro and Dodsal Group respectively. AMEC was awarded the project management consultancy (PMC) contract and front-end engineering and design (FEED) contract. Some of the other companies who have presented their bids are as follows: • Larsen & Toubro •Saipem • Daelim Industrial • SK Engineering & Construction •Dodsal • Hyundai Heavy Industries • Petrofac The scope of the project involves the construction of 3 gathering centers. Each GC will be designed to handle up-to 100 BDP and up-to 240 MBWPD of water and 60 MMSCFD of associated gas. The project is part of the KOC’S plan that aims at increasing crude production to reach 3.65 million BPD by the year 2020. PMI-AGC GULF PROJECT MAGAZINE 12 Subramanian Sarma, Managing Director of Petrofac’s Onshore Engineering & Construction business, stated: “We have a long track record with KOC, which extends over the last 14 years and the award of GC29 represents our tenth project in the country to date. With ongoing projects for both KOC and Kuwait National Petroleum Company and good visibility of the future pipeline, Kuwait is, and will continue to be, of strategic importance to Petrofac’s ambitions in the Middle East market.” GPM NEWS Kuwait Organisation Talent Management The seminar was presented jointly by Mrs. Rawan Sheikh & Mr. Ahmad Almansour. Mr. Hazem Ibrahim introduced Mrs. Sheikh as an HR manager and has vast experience of work- ing as a Talent Management Manager. She has been working with several prestigious bank as a Training & Development Manager. Mr. Hazem also introduced Mr. Ahmad Almansour as a Senior SharePoint Consultant and has served as a Technical HR Consultant in Jordan, UK, UAE, and Kuwait. With 13 years of experience, Mr. Almansour has delivered many courses on soft skills and sales management. This presentation conveyed by demonstration how it is financially viable, effective and beneficial to enhance the skills of your current talent as opposed to recruiting new talent who will need greater time & effort to be brought upto speed with the organization. They stated that when your organization supports project management, it doesn’t mean you implement practices and procedures and call it a day. You need to support your talent, too, and that goes far beyond hiring people and giving them a desk and a mailbox. According to them, Proper talent management is a strategic competency ‹ a blend of recruitment, professional development, succession planning and execution of best practices. Your talent is your most important competitive advantage. Their experience leads them to believe strongly that Executives who weave talent management into the fabric of their organizations are richly rewarded. Talent Management Infographic—Effective Techniques practiced by organisations Organizations in which talent management is aligned to organizational strategy have an average project success rate of 72%, versus 58% at those organizations with poor alignment, according to PMI1s Pulse of the Profession3 in - Depth Report: Talent Management2. The presentation ended with a resounding applause after a Q & A session. Mr. Hazem, VP Programs awarded a certificate to Mrs. Rawan Sheikh & Mr. Ah- mad Al Mansour in appreciation of their presentation. Kuwait Kuwaiti Students Visit Heathrow Terminal 2 friend PMI UK Marketing Director Chris Field. The remit was to arrange a site visit to a significant project in the UK to showcase the project management in all its glory. Site visit to Heathrow Airport Terminal 2 for Kuwaiti students organized by Lifelong Kuwait. When Mohamed Khalifa Hassan Director Con-sultancy at Lifelong Kuwait and Council Manager for the PMIGlobal Sustainability Fo-rum (formally Community of Practice), decided to explain the intricacies of Project Manage-ment to senior undergraduate students from Kuwait University’s College of Industrial Engi-neering, he turned to his The students would have little imagined that a visit to London Heathrow’s awe inspiring new Terminal 2 construction was in the cards when they signed up to their trip to the UK. They were taken through not only the intricacies of the construction project but also the truly breathing attention to detail in the operational readiness arrangements when the Terminal opens its doors to its first visitors on the 4th of June. The visit was arranged by Steve Wake, the Chair of the APM and hosted by Daniel Wynne, Director at Turner & Townsend - Managed Service Providers PMI-AGC GULF PROJECT MAGAZINE 13 GPM NEWS Heathrow Airport Terminal 2 Design (Left) and ongoing construction (Right) for Heathrow Airport Limited (HAL). Proceedings commenced with a presentation by Daniel on the signifi-cance of the project to HAL in its efforts to greatly improve the travel experience of indi-vidual passengers at Heathrow using not only cutting edge technology and processes but also firmly placing sustainability as its guiding principle. This was followed by the actual tour of the Terminal which was on a countdown to its opening. This visit illustrates the global signifi-cance of PMI in promoting project manage-ment. “It was a memorable visit for us all” says Mohamed Khalifa. “Every one of us in the group will remember this tour whenever we pass through Heathrow again”. Kuwait Directors Appreciation Ceremony The Annual Directors Appreciation Meeting was held on 3rd June 2014 at Jumeirah Beach Hotel, Kuwait. Mr. Rafik hosted the event and presented the agenda & initiated first part of the event with a unique farewell presentation by Shital Soni for Wael Al-Jasem, President PMIAGCKW 2004 – 2014 and handover to PMIAGCKW new President, Iman Al-Gharabally. The President welcomed all the board members and honoured the ex-president with words of appreciation , a certificate & a momento for his 10 year tenure & contribution to the growth of PMIAGCKW. Each VP presented the 2014-2015 Roadmap of their department. Hazem Ibrahim, VP Programs Dept. outlined the 5 technical events organized in Q1 & Q2 and presented the 8 events planned for Q3 & Q4. Rafik Babu, VP Admin, IT & Finance Dept. pre-sented their objectives to be achieved in enhanc-ing relationships with our Partners, organizing youth workshops for young project managers, IT key targets include website enhancements with FAQ and developing mobile aps., email an-nouncements & using an accounting system etc. Santhosh presented the sponsorship & member-ship & volunteer Management roadmap, which includes delivering & executing greater benefits to our members, membership retention plan, increasing membership, review & exploit opportunities, engage volunteers & improve team integration. Some noteworthy initiatives launched this year are: •VRMS – Volunteer Resource Management System • Volunteer Survey • Volunteer Management Development with a new correspondence address volunteers@ pmiagckw.org PMI-AGC GULF PROJECT MAGAZINE 14 Thereafter, the PMIAGCKW President Iman Al-Gharabally recognized the invaluable contribu-tions of the board members and appreciated their efforts by presenting a certificate to each officer. The award ceremony ended with special recognition to the chosen “Officer of the year 2013-2014” for each department – 1.Mr. Muhammad A. Siddiqui Director - Treasury & Finance 2.Mr. Santhosh James Kutty Director - Volunteers Management 3.Ms. Ginny Sethi Director - Policy & Audits 4.Mr. Venkat Kadavul (Chief Photographer ) 5.Ms. Hanaa Hafez Director – Technical Presentations GPM NEWS Kuwait Magdy Al Faramawy donating the PMI standards PMI AGC Kuwait Donated Books to Kuwait University to the Kuwait university library director Ms. Dheye In the spirit of Ramadan and on behalf of PMIAGCKW, Magdy Al Faramawy, Director – Inventory & Logistic, PMIAGCKW donated the PMI standards old stocks and new stocks to the Ms. Dheye, library director of Kuwait University to develop and encourage the profession among students. Bahrain United Architects of the Philippines – Bahrain Chapter Induction Ceremony of New Officers FY 2014-2015 The United Architects of the Philippines - Bahrain Chapter inducted their new Set of Officers for FY 2014-2015. The Ceremony was held at the Oasis Banquet Hall, Hotel Diva, Juffair Bahrain last August 15, 2014. Now on its 3rd Year as a charted organization, the UAP - Bahrain Chapter, now boasts membership of up to a hundred Registered License Architects in the Philippines. Organized as a Professional Organization, with the aim of uniting Filipino Architects in the Kingdom, the group has also helped unregistered colleagues take necessary Philippine Licensure Examination, albeit not having a testing center locally. Candidates went to Saudi Arabia and Abu Dhabi where examinations are held. To date, the organization has produced 24 successful individuals. The Ceremony was graced by The Philippine Ambassador to Bahrain Sahid S. Glang, and several dignitaries from the Philippine Embassy. Committee For Organizing Engineering Professional Practice (COEPP) Chairman Majeed Al Gassab was also a guest of honor. Delegates from the UAP – Middle East and North Africa Council, who came from Al Khobar, Riyadh and Qatar, were also in attendance. The Chairman of the Philippine Professional Organization – Bahrain was also at hand during the ceremony. Ambassador Sahid Glang in his speech, pointed out that there are at least seven to eight hundred Filipino Architects working in the Kingdom. He encouraged the organization to gather and reach out to this individuals to make the organization bigger. COEEP Chairman Majeed Al-Gassab reiterated in his keynote talk the importance of obtaining a COEPP categorization/ license for every practicing Architect in the Kingdom. He cited that the Kingdom is gearing towards a stricter Architectural and Engineering practice, thus obtaining a COEEP license a must for every professional. Mr. Gassab also invited the organization to work hand in hand with the local government agencies and come up with an Architectural Convention in the region. A convention that will feature both local and foreign Architects and Engineers. Arch. Donnie Sadia, a Designer for Maison Interiors was sworn in as President of the UAP – Bahrain Chapter FY 2014-2015. PMI-AGC GULF PROJECT MAGAZINE 15 GPM NEWS Oman Oman Convention and Exhibition Center Site Visit Recently, PMI – AGC Oman region conducted a site visit to Oman Convention and Exhibition Center. The Oman Convention and Exhibition Centre (OCEC) Project is one of the biggest project under construction in Muscat. Located in its own precinct, this world-class facility is perfectly suited to host international, regional and national conventions, exhibitions and business events. Amongst its features are a tiered Auditorium seating 3,200 people and more than 22,000 square meters of exhibition space. The new Oman Convention & Exhibition Centre, due for completion in 2016, is set to become an iconic landmark for Muscat and the Sultanate of Oman. More than 20 PMI members participated in the site visit, PMI members were briefed about the different components of the project and the management approach adopted by project team, and then they toured the site. Qatar Qatar Petroleum (QP) and Shell Consortium Set to Open a Massive Petrochemical Complex Al-Karaana Petrochemical Complex is an olefins and derivatives plant which will be located at Ras Laffan Industrial City in the northern part of the country. The project is being developed by a consortium of Qatar Petroleum (QP), which holds an 80% share in the project and Shell holding the remaining 20%. In December 2010, the consortium between QP and Shell signed a Memorandum of Understanding (MOU) to jointly study the feasibility of developing a world-scale petrochemicals complex to be based in Ras Laffan Industrial City. The MOU was signed by His Excellency Abdulla bin Hamad Al-Attiyah, Deputy Prime Minister and Minister of Energy and Industry of the State of Qatar, and then CEO Mr. Peter Voser. In late 2011, the QP and Shell consortium signed the Heads of Agreement (HOA) with His Excellency Dr. Mohammad Bin Saleh Al-Sada, Minister of Energy and Industry of the State of Qatar, and then Shell CEO Peter Voser. Estimated to be around $6.5 billion, Al-Karaana Petrochemical Complex consists of two packages: • Package 1 - Involves the construction of Steam Cracker Off-Sites and Utilities •Package 2 - Involves the construction of Mono-ethylene Glycol (MEG) Unit, Liner Alpha Olefins (LAO) Unit and OxoAlcohol Units The remaining package is the mixed-feed steam cracker unit, which will be supplied with ethane and propane feedstock. The cracker will have a capacity of 1.1 million tpy of ethylene and 170,000 tpy of propylene. In 2014, several companies submitted their technical bids for the engineering, procurement and construction (EPC) contract, which is likely to be awarded in January 2015. The companies are as follows: In February 2013, the Front-End Engineering and Design (FEED) works for the complex were carried out by Fluor, with their scope including: • Offsites & utilities • The LAO and oxo-alcohols units will have capacities of 300,000 tpy and 250,000 tpy respectively. PMI-AGC GULF PROJECT MAGAZINE 16 • The MEG unit will have a capacity of 1.5 million tonnes per year (tpy) and will use Shell technology. The scope of works involved the construction of two trains each with a capacity of 750,000 tpy. •Daelim • Eni Saipem • GS Engineering & Construction • Hyundai E&C • JGC Corporation •Linde • Samsung Engineering • SK E&C • Toyo Engineering Corporation GPM NEWS United Arab Emirates Dubai Metro Calls for Enhancements A group of artificial islands, initially planned as part of the Palm Islands development and referred to as Palm Deira has faced many challenges along with the aftershocks of the financial downturn leading to financial crisis between 2007 to 2010. Consequently, as evident in pausing and withdrawal of a large number of major projects and plans during the crisis period, the anticipated development was eventually terminated and no further talks on the plan revival have been carried out. With the development long out of the picture, eventually the construction market started to pick up where it left off during the crisis. Subsequently, it came as no surprise an announcement from Nakheel in the last quarter of 2013 about intentions to relaunch the project. However, as a result of reassessment of the project plan and its features, Nakheel decided to remodel the project and relaunch it as renamed Deira Islands development. The revived project now comprises 4 linked, manmade islands, which will include mixed use developments including resorts, residential complexes and retail outlets, as well as a 40km coastline to add into the tourist and leisure vibe. As presented by Nakheel, this fusion of entertainment, tourist and leisure attraction will not only boost visitor numbers as indicated in Expo 2020 vision, but will also provide a relaxed living environment for the island residents. The development will encompass several beaches, hotels, resorts and serviced apartments, residential buildings and water side residential developments, and a 2 million square foot shopping mall. Furthermore, the development requires implementation of an infrastructure scheme for accessing the islands. Nakheel has already partnered up with Dubai Roads Transport Authority (RTA) to develop the a system of roads and bridges for smooth transport operation that connects the islands to the rest of the city. Major road construction works will take place on islands A and B and on two bridges connecting Deira Islands with the Dubai Creek Bur Dubai section. The overall project will be split into several packages whereby various consultants and contractors will be appointed to carry out the required works. Currently, RSP has been appointed to design the 2 million square feet shopping mall, and the consultant Ae7 is carrying out master planning, the design for the required infrastructure, as well as architectural and engineering services for the Night market and Board Walk. Meet the world energy challenge Energy is at the core of Technip. With engineering, technologies and project management, on land and at sea, we safely deliver the best solutions for our clients. From the deepest offshore developments to the largest and most complex onshore infrastructures in the world, our people are constantly expanding the limits of the possible. Contact us in Abu Dhabi: +971 2 611 6100 www.technip.com The 3rd PMI-AGC & DMS Energy Forum Debate Set New Standard for Tackling Energy Sector Challenges FEATURE STORY PMI AGC – DMS energy forum debate 2014, Which brought together 160 attendees, was held successfully on the 2nd and 3rd of September 2014, at the Gulf Convention Centre under the patronage of Eng. Adel Al Moayyed, Chairman of BAPCO. The two-day event opened with a Gala Dinner, and keynote speeches from Sheikh Mohammed Al Khalifa, CEO of Noga Holding, Hashim M. Al-Rifaai, President of PMI AGC and Najib Al Naim, General Manager of Schneider Electric. Subjective evaluation criteria, have resulted in complaints from disqualified bidders During the keynote speeches, Sheikh Mohammed Al Khalifa expressed that “Project Management is becoming a very important discipline in all sectors. It has become a crucial skill for the oil and gas sector. To grow you need to add value to an organization, and to add value you need to constantly execute projects, so project management is really about defining the methodology, the best guides in an organization for project completion ” Hashim M. Al-Rifaai followed by stating “The project management industry faces enormous challenges, many of our projects do fail, because they are poorly conceived, or poorly managed or communicated. And as we said projects are the bridge to sustaining and achieving better value, so if projects fail, we will never improve value. Projects are a way of translating strategy into network for the community” Hashim M. Al-Rifaai, President of PMI AGC Sheikh Mohammed Al Khalifa, CEO of NogaHolding Najib Al-Naim, General Manager of Schneider Electric Najib AlNaim closed by adding “ A study of more than 600 projects for over 15 years between the years of 1992 to 2007, provided a result that 80% projects failed to meet project costs and budget goals. Also an average of 70% failed schedule and cost. More over 264 global structure of infrastructure where over run between 20% to 45% on top of all of this especially in our oil and gas sector, our projects are more complex, more capital intensive, than others, the problem is not new, and may even get worse, due to the lack of skilled personnel in our industry ” Mohammed Loch, Majeed Al-Gassab, Adel Al Moayyed, AlSheikh Mohammed Al Khalifa, and Hashim Al-Rifaai The second day of the event hosted a series of Debates and Panel Discussion around challenges currently being faced within the energy sector across the G.C.C and was opened by a keynote speech from Dr. Peter Bartlett, which was followed by Keynote speeches by Abdulmajeed Al Gassab, President of PMI AGC Bahrain and Mohammed Loch President & CEO of DMS Global. Dr. Peter Bartlett opened the debate stating “ I think everybody in this room who has been involved with big projects will recognize that the Kit, the gear, the steel is what people see, but Diamond Sponsor - Bapco PMI-AGC GULF PROJECT MAGAZINE 20 FEATURE STORY very importantly its about the implications for an organization and its capabilities to the job well, and to run a different facility. It is not only about the materials we put into the facility, it’s about the people and the opportunity that we make sure to invest that time and energy we have to bring people up to standards” Abdulmajeed Al-Gassab continued by adding “Today’s mega-projects in the oil and gas industry are now facing tremendous challenges as they become increasingly complex and technologically driven. Safety, Quality, Schedules, Budgets are the usual drivers for performance and every project faces a network of stakeholders concerned about its impact on the environment and communities. While best practices and experienced talents are essential, they are not enough. There is a need for a consistent reference framework that guides their decisions and processes.” Gold Sponsor - Schneider Electric And Mohammed Loch closed by adding “The DMS & PMI AGC team has worked very hard to bring together the best experts in their fields to share experiences in handling serious project management challenges. We are confident that this event will leave you with some real-life examples and practical tools on how to manage your projects better.” Silver Sponsor - Pentair Bronze Sponsor - Technip Dr. Peter Bartlett, CEO - BAPCO Abdulmajeed Al-Gassab, President - PMI AGC Bahrain Adel Al Moayyed receiving the patronage award PMI-AGC GULF PROJECT MAGAZINE 21 Project Owners Should Give Commercial Advantages to Bidders Based on Quality Technical Proposals Rather than Award a Contract to the Lowest Technically Approved Bid. The first debate “Project owners should give commercial advantages to bidders based on quality technical proposals rather than award a contract to the lowest technically approved bid” took place at 9.30 am and was moderated by Hashim M. Al-Rifaai. Speaking for this motion was Mohamed Daoud, Manager (Projects Quality) Engineering & Projects of ADCO Mr. Daoud, opened his debate, by stating that projects should be awarded on a competitive bidding basis. Prior to the bid invitation, contractors need to submit pre-qualification documents and that the evaluation should concentrate on the price as well as the merits of a contractor. He stressed that the evaluation criteria should focus on: 1. Technical Capabilities. 2. Financial Balance Statement. 3. HSE & Quality Performance. 4. Appraisal & Audits. 5. Customer Feedback. 6. Resources and Software. However the evaluation criteria is not enough to judge and award a contract, Capabilities & Experience also play an important role. Budget Canadian Firearms Registry, Initial cost forecast: CAN$2m cost, final cost: CAN$946m Budget Budget Budget Budget US 101 Hellicopter Guangzhou City (USA) Transport Project Boston Big Dig (China) (USA) Budget Budget Budget Nanchang Jiujiang Highway (China) Gezhouba Dam Project (China) Budget Budget Dublin Port Tunnel (Ireland) N20 Patrickswell Cork (Ireland) CuernavacaAcapulco Toll Road (Mexico) Budget Budget Sydney Opera House Humber Bridge (UK) Budget Budget Budget M50 South East Motorway (Ireland) Verrazano-Narrows Bridge (USA) Copenhagen metro, stage 2A+B, NørreportVanløse (Denmark) 1.Do the contractors have the relevant experience and work? 2. What is their annual work value, nature and size? 3. Is the staff experience suitable for critical operational, do they have the technical skills needed? 4.Do they have availability of specified equipment? PMI-AGC GULF PROJECT MAGAZINE 22 Visegrad Hydroelectric Project (Yugoslavia 1985-1990)  He then went on to explain setting the Pass/Fail Criteria, which if not met by the applicants, results in disqualification. A points system that relies on the apportionment of “merit points”. The criteria adopted must relate to characteristics to ensure satisfactory execution of the contract. He ended his debate by saying that, it isn’t FEATURE STORY 1st Motion - Salah Al Bufalah (against), Hashim M. Al-Rifaai (moderator), and Mohamed Daoud (for) an argument of yes or no, it is a matter of the whole cycle, the criteria’s and qualifications needed, and the commercial and technical quality. Speaking against the motion was Salah Al Bufalah, Manager Major Project ZADCO. After the discussion, Mr. Al Bufalah opened his debate with a question, Why techno-commercial evaluations after the bids have been opened are not successful? To which he answered, it is because if you have already done the pass/fail criteria, you have already eliminated the incompetent contractors. So the techno-commercial evaluations after bidding has been opened has very little advantages to standard straight forward EPC contracts, as these contracts don’t have any advanced technological requirements. If you have already done the pass/fail criteria and have set the passing bar high, like for example 80% , that would automatically eliminate the non compliant contractors and the non capable contractors. So why would you give an advantage over someone one who is 2% higher based on bid, rather than based on price? Techno-commercial evaluations only work for contracts that have very specific requirements in their needs, however for most majors EPCs, that are very standard in nature, were contractors spend a lot of time, money and effort putting together a proposal, and passes the pass/fail criteria, only to be rejected despite being the lowest bidder because there is someone who is slighting higher in value, would cause problems for the bidder, becomes a problem and an issue of transparency and subjectiveness. The motion was voted upon, and the votes were 63% in favor of the motion. votes were in favour of the motion votes were against the motion How to Manage an Effective Centralized Control Room for Green & Brown Field Projects After a short break, the 1st panel discussion “How to Manage an effective centralized control room for green & brown field projects” took place. Moderating the discussion was Hafedh Al Qassab, General Manageer Refining BAPCO. The first panelist Hugh Wingrove Editorin-chief of DMS Automation Insight! spoke about remote operations using centralized control room and full intelligent automation. He mentioned that both Brown and Green field projects can benefit from the advances in technology to allow centralized control rooms, however Brown field projects face more difficulties due to existing plant layout and often stick to distributed control rooms to follow DCS concept, while Green field have blank sheet He stated that the key will be to concentrate on technology and ergonomics, however there will be human-centred problems existing for both, If we manage those centralized control rooms can be successful He also provide a useful guide on how to create a remote operations using centralized control room and full intelligent automation. • Make sure the process is highly automated • Rotate between units to maintain skills and share knowledge • Set good appropriate work procedures • Better communication protocols • Constant training The second panelist Nilangshu Dey, Project Engineer (instrumentation) PMI-AGC GULF PROJECT MAGAZINE 23 FEATURE STORY 1st panel discussion - Hugh Wingrove, Nilangshu Dey, Hafedh Al Qassab (moderator), Martin A. Turk, Ph.D., Paul Steinitz That very sophistication of a remote controlled system has removed “the touch and feel” of the operator from the process so that they are less ready to handle unforeseen events compared to the past. Operations Engineering of Qatar Petroleum, gave the audience a case study on the topic. Mr. Dey’s case study focused on the NGL Control Room revamping due to various brown field projects and Qatar Petroleum. The NGL-3 GSF Plant control room was built in 1990, and has had major upgrades of control systems in the subsequent years for having centralized control room operations. The Operator interfaces/HMIs added in the stages caused a disruption in operators attentions. The several HMI/operator consoles and fire & gas mimic panel added gradually through brown field projects resulted in multiple operating systems in the control room. Some of the challenges faced were 1.Number of individual operator stations (HMI) gradually added in the control, in bits and pieces, faced difficulty during any emergency operations. 2. The control room was overcrowded with various operators stations 3.The operators attention was getting diverted by multiple operating systems With the new layout, the advantages were: 1. Operator effectiveness for 24 X 7 operation 2. Empowering operator alertness and increase each operators efficiency 3.Reduce the implementation time for brownfield and green field projects 4. Reduce unnecessary downtime 5. Attract the new generation of operators 6. Reduce the number of operators 7. Create attractive 24-7 environments and prevent operator fatigue PMI-AGC GULF PROJECT MAGAZINE 24 Martin A. Turk, PH.D., Director of Global Application Consulting Invensys, the third panelist, spoke about the Capabilities of Automation System to Meet the Challenges. Mr. Turk, explained in depth, the following: 1. How to achieve longer process run times between turnarounds 2.How to prevent cyber attacks from compromising system integrity 3. Managing increasingly complex automation systems 4.Avoiding obsolescence of automation systems 5.Capitalizing on the increasing numbers of non-control process inputs without significantly increasing automation system cost and/or reducing performance 6. Sustaining consistent best-practice operator performance across all operating FEATURE STORY crews 7.Minimizing the chances for errors in judgment due to operator fatigue and/or stress He also stressed that the success and growing sophistication of control systems has inadvertently led to a detachment from the process, operators aren’t fully aware of what to do to handle major crises The final panelist, Paul Steinitz, Director Strategic Services of ARC Advisory Group, spoke about information driven manufacturing. Mr. Steintz gave us a brief over view of what has changed within the last ten years: 1. Sensors became less expensive and more intelligent 2. Data storage & sharing moved to cloud based 3.Understanding the data – descriptive, predictive, in-context 4. Pervasive Communication, Industrial Internet of Things (IIoT) and Mobile devices He then moved to benefits of Centralized Operations: 1. Integrates people & work processes across locations & job functions 2. Staffing efficiencies 3. Business integration with operations 4.HSE benefits – safety, environmental, travel And the challenges: 1. Response to alarms 2. Completeness of data And finally ended with the challenges of Cyber Security He mentioned that not all threats are equal, not all threats produce catastrophic results. The safest cyber security mode is completely isolated, but that loses the benefits of IIoT and remote operation. He also ended with the fact that the cost of cyber security perhaps could be paid by the benefits of remote operation. How to Manage an Effective Centralized Control Room for Green & Brown Field Projects 2nd panel discussion: Rolf Baumgartner, Abdul Jabbar A. Karim (moderator) and Madhu Pillai The event breaked for lunch at 1 pm and was resumed at 2 pm for the second panel discussion “How to avoid mega projects cost over runs” which was moderated by Abdul Jabber A. Karim, General Manager Projects, BAPCO Moderator A. Karim, briefly explained that project fail because of either , Poor risk management, Unduly compressed schedule, Poor Attention-to-detail, No money during FEL or Poor direction from the top. He expressed that we should never, Sacrifice quality for low cost, Sacrifice quality for fast schedule, Sacrifice cost for fast schedule and sacrifice safety for speed, before he handed the floor to the first speaker. 2.Perform Quality FEED, complete & consistent The first panelist Rolf Baumgartner, project manager of Technip, spoke about how to avoid Mega Project Cost Overruns, during FEED, EPC Bid and EPC Mr. Baumgartner, mentioned that the strategies in achieving in success through project phases. Second during EPC Biding 1.Extended PVL secures Procurement flexibility, 2. Agree on Critical LLI Vendor Deviations; prepares TBT & PO in EPC phase 3. Resolution for Endorsement Findings & Post-Feed changes (ie updated Key Feed deliverables) First during FEED 1.Efficient, cheap and strong mitigation of EPC Risks of Design Growth, delayed POs. And lastly during EPC - Project Set-up 1. Nominate single point of responsibility for client, empowered and within Project Task Force, ensures efficient decision making PMI-AGC GULF PROJECT MAGAZINE 25 FEATURE STORY 2. I-PMT under Client Leadership instead of PMC, leads to higher performance 3. Technical Authority to be designated for Project Other topics he touched upon were, client sponsorship for local content, as the client has a stronger local leverage than contractor, due to either its local presence or familiarity with the site regulations. He mentioned that client active Sponsorship can facilitate: 1. Site Access & Gate passes, reducing Risk of workforce standby 2. Securing local resources 3. Visa delivery by Authorities He also stressed on how cash flow makes a difference and indirectly affects Project, if budgets tighten, prices are renegotiated, or purchases can be postponed if there isn’t enough cash flow. Lastly he ended with active Trend Management, with review and “Approval in Principle”, will support smooth implementation of mitigation measures. Department 5. Limited Budget for Estimate Preparation The last panelist Madhu Pillai VP (International) – AACEI & Projects Director of Kentz Engineering International Co. Ltd, spoke about the main two reasons that cost Overruns And that some factors influencing Cost management during execution are: 1. Completeness on Scope 2. Selection of the Right Form of Contract 3. Project Management Team’s Competency 4. Commitment of all Key Stakeholders 5. Relationship Between all Parties 6. Reasonableness on Fixed Costs 7. Risk Management System 8. Cash Flow 9.Early involvement of All Functional Departments He Began his discussion with the statement, Different researches show cost overrun happens on 65 to 85% of the projects, and that the main two reasons that cost overruns are Under-estimating during FEED / Bid Phase or Poor cost management during execution. He mentioned that estimates fail because: 1. Inexperienced Project Managers & Estimators 2. Lack of Definitive Project Scope 3. Lack of Proper Basis for Cost Elements 4. Not Employing the Estimating HHe stressed that the key would be to consistently perform a validation and verification of the project. That ideally the first validation should be within 2 months, for projects with a completion date of more than a year, while the second validation should happen when the engineering is fairly complete. Refiners Should Outsource Their Hydrogen Needs Rather than Produce it Themselves Followed by a short coffee break, the final Debate “Refiners should outsource their Hydrogen needs rather than produce it themselves” Moderating this discussion was Dr Dawood Nasif, Adivsor Noga Holding Speaking for the motion Shaya Al Qahtani, Project Manager Hydrogen Yaserf, Mr. Al Qahtani started his debate by stating that Hydrogen is not our business, so let’s focus. By outsourcing hydrogen, refineries are getting more value and a higher refinery margin, reduced risk, optimized resources and a long term partnership with someone you trust. He mentioned that a higher performance due to outsourced hydrogen, improved overall operations, as safety, availability and efficiency were no longer a concern, And that the project execution time and budget improved. Other advantages he mentioned were: • Partner manages and bears construction risk • • • • • Highest (Gold Medal) Safety Performance Modularization that leads to early delivery Availability is guaranteed long-term Higher On-Stream Factor Minimize risk of unexpected and major outages , costs and risk born by H2 Partner •Leverage feedback from world wide network of operations with operational cycles • Compliment the recovered Hydrogen on site by HR unit and FGRU • Synergy with other processes such as CO2 capture (which can be used for oil recovery) , waste water treatment, Biofuel • Hydrogen balance optimization can add value and synergy in the refinery Against the Motion, Ahmed Al Majed, Team Leader, Process – NRP of KNPC He proceeded with the disadvantages of outsourcing • Relying on a third outside party for a vital critical product • The destiny of the critical margin is outside the fence • The need to coordinate and synchronize the planned turnarounds Mr. Al Majed, Also started his debate with a question, What is hydrogen to a modern refinery? To which he answered, for a modern refining operation, hydrogen is very precious, with main processing in hydrotreating of various streams or hydrocracking of heavy products. He then moved to discuss the advantages of captive generation: • As a capital cost, the cost of captive generation is only 10% of a large expansion project. • The production of steam • The flexibility in swing production to coup PMI-AGC GULF PROJECT MAGAZINE 26 And lastly he ended with a case study based on 5 years of import, in one of the refineries in the Middle East. He shared that within 5 years, there were 7 unplanned cuts of hydrogen supply, causing a disturbance of operation in the refinery. That a special mitigation plan needed to be developed to give priority in what units to sacrifice first. He explained that there where losses with every FEATURE STORY 2nd panel discussion: Shaya Al Qahtani (for), Dr. Dawood Nassif (moderator) and Ahmed Al Majed (against) shut down, and that when a refinery shuts down without synchronizing with the source, the hydrogen is flared The motion was voted upon, and the votes were 72% in favor Of the motion. At 5.30 pm, the best speaker was announced; Nilangshu Dey; and the debate was closed. The energy industry faces many challenges in a constantly changing market. There is always an industry challenge that needs to be addressed, whether it is a technical challenge or a commercial one. The debate provided a neutral platform, that allowed delegates to debate potential solutions to current challenges in an open environment, while the voting at the end of each debate served as an indicator as to how the energy sector feels this particular industry challenge should be addressed. Various Risks Make case Self Production H2 Outsourcing Project execution Capex, timing remain yours, exposed to capex overruns borne by partner Industrial risk All yours major breakdown borne by partner Operational risk Its all yours borne by partner Efficiency long term after performance test all yours borne by partner guaranteed long term Maintenance cost remains yours Safety It’s all yours all included borne by partner votes were in favour of the motion votes were against the motion Nilangshu Dey (right) receives the Champion Speaker award from Mohammed Loch (left) and Hashim Al-Rifaai (middle) PMI-AGC GULF PROJECT MAGAZINE 27 FEATURE STORY Bapco Makes Giant Leap with Waste Water Treatment Plant Launch Marking an enormous milestone in the steady progression of The Bahrain Petroleum Company’s development, Bapco launched its Waste Water Treatment Plant (WWTP) Project on 12 December 2013 at the company’s Refinery premises. The project was commissioned as part of Bapco’s EHS policy, which reiterates its commitment to the protection of the environment and to the health and safety of its employees, contractors, customers, the surrounding community and the general public. The WWTP Project has been implemented as part of BAPCO’s Environmental Strategic Plan in line with the requirements laid down by the Supreme Council for the Environment at a total cost of US$ 120 Million. This new plant will provide secondary treatment to the Refinery waste water that is received from the existing primary treatment facility, is based on 4-stage membrane bio reactor technology and will be the first global installation of this size in any Refinery waste water treatment facility. With this Project, Bapco and Bahrain have been put on the world map for using innovative technologies in environmental conservation. The process design for the new Plant was finalized by CH2MHILL, one of the world’s leading process consultants in the waste water treatment business. Engineering, Procurement and Construction (EPC) was managed by GS E&C, a leading South Korean EPC company. The project effectively implemented BAPCO’s contracting philosophy to maximize use of local content in the purchase of goods and services. More than US$ 34 Million, which amounts to nearly half of the EPC contract value, was spent by GS E&C in purchasing materials and services locally thus supporting local businesses and employment. The project has also provided opportunities for the employment, development and growth of approximately 50 young Bahrainis that have been hired and trained in the operations and maintenance of this world-class facility. BAPCO is poised to meet and exceed the minimum standard set in Bahrain’s PMI-AGC GULF PROJECT MAGAZINE 28 environmental regulations for aqueous discharge to the sea, thereby protecting the marine life in Bahrain waters. The company has reiterated its commitment as an environmentally responsible company by developing Bahrain’s longest landscaping covering a span of 2 kilometers near Maameer area at a total value of US$ 2.2 Million as part of the project. In line with the company’s motto of striving for excellence, the Waste Water Treatment Plant Project has successfully catapulted Bapco as well as the Kingdom of Bahrain to the international arena, garnering positive acclaim regionally and internationally for its concept of using innovative technologies in environmental initiatives. In other words, the WWTP has paved the way for bigger prospects and a brighter future in the Bahrain Petroleum Company. Complete Solutions for the Power, Oil & Gas, Petrochemicals and Information Technology • • • • • . Electrical Equipment Industrial & Oilfield Lighting Equipment Communication Infrastructure Instrumentation Renewable Energy • • • • • . AL ABDULKARIM HOLDING [email protected] www.akh.com.sa Power System Data Center Infrastructure Enterprise Applications Education & E-learning Lab Systems Plant IT Solutions & Services Tel: +966 13 833 7110 Fax: +966 13 833 8242 P.O Box 4, Dammam 31411, KSA Dammam • Khobar • Riyadh • Jeddah • Jubail • Al Madina Al Munawara • Yanbu • Rabegh • UAE • Bahrain • Qatar - India PMI EMEA Leadership Institute Meeting HASHIM AL RIFAAI President, PMI Arabian Gulf Chapter FEATURE STORY We started our activities in Dubai on 1st May 2014 with a leadership meeting, which all chapter leaders were invited to. It was a 2-day event. Philip Diab, Past Chair, PMI Board of Directors, started the session by giving a brief overview of the rewards of the PMI Volunteering. He also summarized PMI’s Core Values, Volunteer/ Staff structure, and rewards of the volunteer experience. Later that the day, Joanne Lynch, Manager of the Volunteer Programs and Services, gave us a presentation on her working field to support effective chapter operations. Tarnbir Kaur, Managing Director of the UAE Chapter Relations and Development, and Ahmad Al-Moghrabi then spoke about the “Essential Guide for Effective Chapter Management”, which is was great resource for all chapter officers. In the afternoon Mr. Shaligram Pokharel, a member of the Chapter Member Advisory Group, made a presentation on “The Fiduciary Responsibility of a Chapter Leader”. This session explored the basic fiduciary duties that every chapter leader should be aware of. The lecturer advised the attendees on how to improve the performance of their chapter board fiduciary responsibilities, as well as its alignment to PMI values and their local chapter mission. Attendees also learnt the methods of finding tools and resources that can assist them with their fiduciary duties. David Wright, Membership Specialist gave a presented on membership programs to support Chapter Growth and Retention, and Brian Weiss, VP Practitioner Markets wrapped up the day with the emphasis on the focus areas of the PMI and their structure. In the first half of the day two, Ismail Al-Baidhani, the REP Member Advisory Group, gave a talk about Chapter Best Practices for Working with REP’s. In the afternoon the opening session of LIM was held. The day ended with the collegue of Mr. Al-Baidhani, Connie Plowman, giving the insights into the best practices of incorporating transition and succession FEATURE STORY planning into the overall chapter strategic plan and operations. Connie started by explaining that once you have accepted a position on the board, you undergo the transition from a simple project manager to a business leader with many more new tasks to master. She encouraged newly appointed leaders to seek advice and assistance of the colleagues from corresponding working areas. “PMI Learn” on PMI’s website is full of resources that can assist newly elected officers. It is imperative that they learn about their fiduciary responsibilities, Code of Ethics, Code of Conduct, etc. She also emphasized that it was crucial for the board and the board president to exchange the mutual expectations. A “Shared Expectation Sheet” would be the new charter under which that board would oversee the responsibilities of the members. She highlighted that relations are paramount to being a successful business leader. Relationships encompass the following elements: purpose, passion, people and planning. Ms. Plowman also expressed the need to develop an individual development plan (IDP) which contained: 1.The officer’s roles, 2.The knowledge about the chapter (e.g. its history, mission, vision, bylaws, etc.), PMI-AGC GULF PROJECT MAGAZINE 32 3.The knowledge about the institution of PMI, its structure, mandate, strategy, areas of focus, etc. 4.The important leadership skills a business leader needs to grow and the ways to get them. Ms. Plowman, recommended two books by John Maxwell, which will help a newly appointed business leader to gain confidence in every day practice: “How Successful People Lead”, and “How Successful People Think”. FEATURE STORY Day One The UAE Chapter president gave a welcoming speech which started the LIM. It was followed by a brief message from PMI’s chairman, Ricardo Triana. Mark Langley gave an excellent speech about Changing Times at PMI, and the opening session was concluded by Brian Weiss, Vice President, and Practitioner Markets, who asked a thought provoking question: “Are You Ready?” During his presentation, Brian gave wonderful statistics about the new workplace and upcoming challenges which we needed to prepare for. After the welcoming session, the AGC team splits into various teams each heading for different tracks, so that we could maximize the learning value for our members. I personally attended the session on Facilitation Techniques for Volunteers, which was given by Kenn Dolan, PMP, Board Volunteer Advisory Committee. Mr. Dolan showed the attendees various facilitation techniques that could be applied to manage volunteer groups within a chapter, or at work. The session provided practical guidance on how to plan, manage and supervise workshops to ensure that the time is used productively, and that the participants can implement the new knowledge in their chapters. Mr. Dolan explained that when a volunteer leader takes on this position, members assume that he is fully knowledgeable and experienced in all aspects of that job, including mastering facilitation capabilities. However this is certainly not always the case. Mr. Dolan explained the difference between a Task & a Process. A Task is what we do, whereas a Process is how we do it. The role of a “Task Leader” is to focus on tasks and be the subject matter expert, whereas the role of a facilitator is to focus on the processes employed during facilitation irrespective of answers. He went on to explain that the secret in linking tasks to processes is to know which process to used, and when. He also gave examples and techniques on how to curb the dominance of dominating personalities, how to engage introverts, how to solicit open ideas. Day Two Day two was undoubtedly the best for me. It had a variety of interesting topics that were delivered by seasoned speakers and subject matter experts. Chris Roebuck, Visiting Professor of Transformational Leadership at Cass Business School, London gave the opening keynote speech. The subject was Entrepreneurial Leadership. He argued that the entrepreneurial mindset was not just for organizations and startups, but for chapters and PMI as a whole too. Mr. Roebuck gave examples of some key challenges facing PMI leaders, and how to deal with them. Expanding current ways of working and thinking would be critical. Chris showed how organizations could re-energize themselves to become Mach 2 performance organizations. He encouraged the audience to adopt an entrepreneurial mindset to grow membership, boost retention rates and increase volunteerism in every chapter. PMI-AGC GULF PROJECT MAGAZINE 33 FEATURE STORY I then headed to the educational session entitled: Engaging Schools and Students to Build the Future of Project Management in Your Community. Both Roberto Toledo, PMP, Chair, PMIEF Board of Directors; and Walter Ginevri, President, PMI Northern Italy Chapter, were presenters. Mr. Ginevri was great. He shared with us how his chapter has worked with the PMI Educational Foundation to deliver project management skills training to schoolaged children, and helped us discover how our chapter can similarly collaborate to facilitate the project management education of students in our community. A wealth of valuable examples from various countries e.g. France, Portugal, Italy were given. After a vibrant networking lunch, I walked over to the session headed by JeanChristophe Hamani, PMP, Vice President, PMI France Chapter. He presented us with a detailed history on the formation of the French chapter. His topic was: How to Succeed and Sustain Chapter Growth: The 360⁰ Vision. This session explored the 360⁰ strategic vision and how it can help chapters grow its membership base. This vision included serving the needs of all local ecosystem stakeholders, including chapter members, R.E.P.s, sponsors, partners, corporations, academics and more. The session also includes tips for leading change despite the challenges of being a volunteer organization and an overview of chapter with branch model. Some of you may not know that the 3 French chapters have agreed, and now are, one chapter! The second last session I attended concerned Financial Management for Chapters: Keys to Success. It was delivered by Tejas Sura, PMP, Region 11 Mentor. This session discussed important areas of chapter finances that lead to the sustainability of a chapter. We learned a lot about financial ratios, which can help us, gauge the health of a chapter. Attendees were given several templates that can help chapters plan finances and track them. After a short coffee break, I attended (for the second time) the session delivered by Connie Plowman, PMP, Chapter Member Advisory Group, entitled: Transition & Succession Planning for Your Chapter. As explained earlier, this session introduced attendees to the concepts of transition and succession planning and how to create a transition and succession plan in your chapter. The transition and success planning framework’s documents, tools and templates were discussed and attendees were given limited copies of PMI’s Chapter Leaders Guide “Strategies for Onboarding and Transitioning” and “Volunteer Role Delineation Study Results”. Day Three This was the final day of LIM. I started my day by attending the session on Applying a Business Model Canvas to Your Chapter Operations delivered by a member of the Poland Chapter. It was a hands-on workshop. It explored the use of a proven strategic management tool called the Business Model Canvas, which is mainly used by startups and entrepreneurs. This model allows you to describe, design, challenge, invent and pivot a business model for your chapter. Attendees learned how to use this effective model for their chapter. I also managed to partly join the workshop on Storytelling. Attendees were asked to share how they got involved with PMI, Not only do the stories put PMI and your chapter into context, they also evoke emotions. People relate to stories and want to know what happens next. They become invested in the storyline and characters. When you approach the relationship with your members with this type of human perspective, you can earn real loyalty that lasts beyond events, training and chapter meetings, and build bonds that can last over a career. This marketing session will explore how storytelling is the key to building longer and more meaningful relationships with your members. Before wrapping up the day, I attended a session on Secrets to Developing Your Leadership - Your Personal Brochure. It was presented by Agnieszka Gasperini, PMP, “I hope that you are now more aware of how we spent our time, and have gained some new insights and information. Our regional leaders were very punctual, worked hard, networked, coordinated among themselves, and had fun too. Please do not hesitate to contact any of the attendees, if you require any elaboration. We are here to serve you.” PMI-AGC GULF PROJECT MAGAZINE 34 Incoming 2015 Mentor, Region 8. At the session, attendees were introduced to a coaching game to explore and develop their own personal brochure. At the end of the session, attendees developed their personal mission statement, established a suitable plan for the next year and broke down their mission into process steps so that they could begin (or expand) their leadership journey! LIM was concluded by a keynote speech delivered by Mike Forde, Former Director of Football Operations, Chelsea Football Club. His speech focused on Leading in a Global Talent Economy. Automation University Classic Sheraton Dammam, Kingdom of Saudi Arabia 09 & 10 September 2014 Learning with a difference The Most Significant Manufacturing event comes to Dammam If your role is in management, engineering, IT or purchasing, visit Automation University Classic 2014 for invaluable, up-to-date latest news, views, trends and technologies of integrated information and automation solutions. Learning with a difference! After having been organised across Europe and Africa for the past ten years, Automation University is finally coming to Dammam. Don’t miss it! z Ideal for business managers and engineers. z Meet and consult with leading Automation and Information experts. z See the latest Automation and Information advances. z Meet and discuss topical issues with industry peers. z Plan a program specific to your needs from over 60 hands on labs, demonstration and presentations session tailored to your specific needs. z Wide range of sectors, including Oil & Gas, Water Waste Water and Consumer Packaged Goods. z Visit our extensive exhibition floor including 800 sqm of interactive and static displays from Rockwell Automation and its valued partners. z Best of all: this must attend event is completely free of charge For updates visit our website: www.automationuniversity.eu INTERNATIONAL FEATURE Seven Steps to Strengthen Your Bond with Your Sponsor Author: Rachel Bertsche The project manager and sponsor are the ultimate power couple: They’re stronger together than apart. Sponsors and project managers are liaisons between two groups, says David West, senior technical director, WSP, London, England, who has worked as both a project manager and project sponsor. “The sponsor represents the interests of the organization and all the stakeholders, while the project manager speaks for the project team,” Mr. West says. In other words, the sponsor and project manager hold the project family together. Not only do the two partners benefit when they work well together—so does the project. According to PMI’s Pulse of the Profession® research, having active sponsors— meaning executives who are engaged and who champion the strategic value of projects and communicate benefits to stakeholders—is the top driver of project success. “Getting the sponsor involved is a huge piece of a successful project,” says Jessica Janko, PMP, PMO manager, Medical PMI-AGC GULF PROJECT MAGAZINE 36 Transportation Management, St. Louis, Missouri, USA. “If you don’t have an active sponsor, it’s challenging not only because you don’t have clear expectations in terms of what the organization is trying to accomplish, but you also don’t have an advocate for the project. We need project sponsors as much as they need project managers.” Of course, all relationships take work. These strategies can help both sponsors and project managers build an effective partnership. INTERNATIONAL FEATURE 1. Talk Early and Often A solid rapport between sponsors and project managers starts even before the project begins. “Just as you would do a kickoff meeting for a project, it’s important to do a kickoff meeting for the project manager-sponsor relationship,” says Paul Dinsmore, PMP, PMI Fellow, director, Dinsmore- Compass Consulting Co., Rio de Janeiro, Brazil. At this initial meeting, which ideally lasts at least an hour, “both parties should outline what they understand their roles to be,” says Mr. Dinsmore, who has worked as a sponsor. By the meeting’s conclusion, the project manager and sponsor should each have a written document that lists their responsibilities. “Getting the sponsor involved is a huge piece of a successful project. We need project sponsors as much as they need project managers.” — Jessica Janko, PMP, Medical Transportation Management, St. Louis, Missouri, USA That should be the start, not the end, of the dialogue. Maintain communication as the project progresses, especially with face-to-face meetings. “It’s essential that the project manager and project sponsor have at least a half hour booked every month,” says Vicki James, PMP, senior project manager and business analyst, Professional Project Services, Seattle, Washington, USA. Ms. James recalls working on a project whose release date kept getting delayed. “I was reporting it all along, but only in status reports,” she says. “At the last minute, the sponsor said, ‘Wait a minute. Why didn’t I know the release date was getting pushed?’ I guess she didn’t read my reports.” The entire half hour of in-person meetings may not be needed, Ms. James says, but the time can be used to quickly go over the status report and ensure everyone is in the know. 2. Make It Personal Establishing a personal connection goes a long way toward building trust—a necessity for any strong partnership. “How many kids does the person have? What are this person’s hobbies? You can talk about things that aren’t just issues of the project,” says Mr. Dinsmore. “Those early friendly conversations build a rapport that makes working together easier.” Social media can shed a light on possible conversation starters, says Ms. James. “Look up your sponsor on LinkedIn—find out what their interests are, where they went to school, what jobs they’ve had,” she says. “Look for areas of commonality. See if there’s something you can glean that you can build a relationship upon or at least ask questions about.” But keep in mind it’s not always personal. The project manager and sponsor can become fast friends, but if a project is going poorly, a sponsor still may have to cancel it. “At the end of the day, the sponsor is the one writing the checks and the one with his or her head on the chopping block with the board of directors,” says Ms. James. “They have the right to overrule the project manager or cancel a project, and it’s not necessarily a judgment on the project manager’s abilities.” PMI-AGC GULF PROJECT MAGAZINE 37 INTERNATIONAL FEATURE 3. Build the Team Together Ideally, the first people on a project will be the sponsor and project manager, who’ll build the team from there. “It’s difficult when the sponsor has already hired an architect and a cost consultant and a structural engineer and then says, ‘Oh, I think I need a project manager,’” Mr. West says. “Then the project manager is the new kid on the block, and the architect and cost consultant and engineer don’t feel they owe the project manager any intrinsic loyalty.” When the project manager gets involved in hiring the team members— sitting in their interviews, asking them questions—then “the team members will in turn feel they owe the project manager some loyalty,” he says. “Look up your sponsor on LinkedIn—find out what their interests are, where they went to school, what jobs they’ve had. Look for areas of commonality. See if there’s something you can glean that you can build a relationship upon or at least ask questions about.” — Vicki James, PMP, Professional Project Services, Seattle, Washington, USA But forming a team doesn’t guarantee it will never change. Roles can shift, people leave jobs, and the team you hired to launch a project may not be the team that finishes it. Even the sponsor can change mid-project. When that happens, the project manager must form a bridge between the old sponsor and the new one, says Sakshee Kohli, PMP, program manager, ANZ Bank, Melbourne, Australia. “New sponsors tend to have a new perspective and often question past decisions. The best strategy in that case is for the project manager to get the two sponsors together, even for just 20 minutes, to say, ‘Here’s what we’ve done so far, here’s what we’re working on now, and here’s where we’re headed,’” Ms. Kohli says. “Explain that where we’re headed is open to suggestions, but we can’t change what’s been done in the past.” 4. Speak the Same Language You can’t work with your colleagues if you don’t understand them. So forgo jargon, and if you have to use technical terms, take the time to explain them. “Just as a doctor might need to translate medical terms for a patient, a project manager can help the sponsor understand things like earned value analysis and critical path— all those terms project managers take for granted,” Mr. West says. On the flip side, project managers should PMI-AGC GULF PROJECT MAGAZINE 38 educate themselves in the business’s language as well, he says. When Mr. West worked on the relocation of a pathology laboratory for the Royal Air Force, he asked the sponsor, a pathology expert, to show him around the existing lab. “Getting that tour helped me understand their language and understand what worked in the current lab and what didn’t,” he says. “Just as a doctor might need to translate medical terms for a patient, a project manager can help the sponsor understand things like earned value analysis and critical path.” — David West Remember that “what” is often less important than “why”: The definition of something like “schedule variance” has less significance for a sponsor than why it matters. “When explaining earned value, for instance, make sure the sponsor knows what it means for them and how it affects them and affects this project,” Ms. Janko says. 5. Help Me Help You A sponsor serves as the project’s advocate, breaking down obstacles that impede progress. But sponsors can’t solve problems if they aren’t aware of them. INTERNATIONAL FEATURE “Most project managers are independent individuals and assume they should try to handle problems themselves,” Mr. Dinsmore says. “Sometimes they don’t realize that the sponsor’s role is to help, particularly in situations that are political in nature.” A sponsor usually knows the ins and outs of an organization and its cast of players, so project managers should take advantage of that knowledge and ask questions to understand the stakeholders. “I’ve been in a situation where there were external roadblocks preventing a project from moving forward,” Ms. Kohli says. “The sponsor identified for me the people I needed to talk to, and shared strategies for communicating with those people most effectively, so it didn’t seem politically influenced. My sponsor knew background that I didn’t know when I joined the organization, and that helped a lot.” But again, it’s a two-way street: Sponsors should also reach out to their project managers, says Mr. Dinsmore. “The best thing a sponsor can do is say, ‘Hey, if you need help convincing so-and-so, I know him well and we can work together on this.’” 6. Anticipate Surprises No one likes to be caught off guard. Sponsors should try to avoid surprising project managers with scope creep—but if the scope must change, they must understand that might cause cost increases and time delays. “Organizations exist in a constantly changing competitive environment,” Mr. West says. “So scope might need to change, particularly if it’s a very long project— how can you be sure that the reasons for the project that exist now will still exist in two years’ time?” As for project managers, they should never keep bad news to themselves— especially if negative developments call into question the project’s strategic value. “If a problem affects the business case, let me know,” says Mr. West. “If costs are rising, if delays are creeping in, the sponsor needs to know. When the business case for a project goes negative, something’s got to be done about it, and that’s the sponsor’s responsibility.” When surprises happen—and they will— both sponsors and project managers must try to stay as flexible as possible 7. Stay in Your Lane Micromanaging is “the cardinal sin of project sponsorship,” says Mr. Dinsmore. When both parties do the work of building trust, outlining roles and responsibilities, and communicating regularly, micromanagement shouldn’t be an issue. “Presumably, the right project manager has been assigned to the project, so the project sponsor has to trust that that person will do the job,” Mr. Dinsmore says. A time suck for both parties, “micromanagement is not productive for anyone,” Ms. Janko says. “It usually happens because the sponsor doesn’t know what’s going on—they’re not seeing what they expected to see or they’re receiving different metrics—so they get overly involved. Having an open dialogue up front alleviates that issue.” Project managers should remember, though, that just because it’s annoying doesn’t mean it’s micromanagement. “I had a project sponsor who did one thing that I thought was really micromanage-y, and it used to bug the heck out of me,” Ms. James says. The sponsor in question wanted to see the project schedule in a particular format, “because when she did her master’s she had studied critical path and she wanted to see the float on the project,” she says. “Looking back, I realize she was a great sponsor, and she probably did have a better grasp on critical path. So, as a project manager, you have to ask yourself: Are they really micromanaging? Why are they making this request?’ In the scheme of things, it might not be so bad.” It takes two to create an effective relationship between sponsors and project managers. If they both hold up their ends of the bargain, they—and their projects— will reap the rewards. Sponsors in Action On Target: 81% of projects at high-performing organizations— those that complete 80% of projects on time, on budget and within original goals—have active sponsors. At lowperforming organizations, just 45% of projects have active sponsors. On Strategy: 66% of strategic initiatives are successful when they have actively engaged sponsors. Without active sponsors, just 41% of strategic initiatives are successful. On Organizational Change: 81% of organizations that are highly effective with organizational change report frequently using executive sponsors on their strategic initiatives, compared to only 25% of organizations minimally effective. On Complexity: When it comes to complexity in projects, a sponsor who actively supports the project is the second factor with the greatest impact on the success of projects— second only to effective communication. Check out www.PMI.org/Pulse this month for the new in-depth report on executive sponsorship. Source: PMI’s Pulse of the Profession PMI-AGC GULF PROJECT MAGAZINE 39 INTERNATIONAL FEATURE PMI’s Pulse of the Profession In-Depth Report: The Impact of PMOs on Strategy Implementation November 2013 Most Prevalent PMO Frameworks and their Primary Functions Organizational Unit PMO/Business Unit PMO/Divisional PMO/Departmental PMO: Provides project-related services to support a business unit % WHO HAVE THIS PMO IN THEIR ORGANIZATION: Primary Functions Performed (top 3 listed with % responding): 54% Project/Program Delivery Management: 46% Standards, Methodologies, Processes: 15% Portfolio Management Prioritization: 15% Project Support/Services/Controls Office or PMO: Provides enabling processes to continuously support management of project, program or portfolio work % WHO HAVE THIS PMO IN THEIR ORGANIZATION: Primary Functions Performed (top 3 listed with % responding): 44% Project/Program Delivery Management: 47% Standards, Methodologies, Processes: 19% Portfolio Management Prioritization: 12% Enterprise/Organization-wide/Strategic/Corporate/Portfolio/Global PMO: Highest-level PMO often responsible for alignment of project and program work to strategy % WHO HAVE THIS PMO IN THEIR ORGANIZATION: Primary Functions Performed (top 3 listed with % responding): 39% Project/Program Delivery Management: 30% Portfolio Management Prioritization: 25% Standards, Methodologies, Processes: 20% Center of Excellence/Center of Competency: Supports project work by equipping the organization with methodologies, standards and tools % WHO HAVE THIS PMO IN THEIR ORGANIZATION: Primary Functions Performed (top 3 listed with % responding): 35% Standards, Methodologies, Processes: 41% Project/Program Delivery Management: 24% Strategic Planning: 14% Project-Specific PMO/Project Office/Program Office: Provides project-related services as a temporary entity established to support a specific project or program % WHO HAVE THIS PMO IN THEIR ORGANIZATION: Primary functions performed (top 3 listed with % responding) Project/Program Delivery Management: 46% Standards, Methodologies, Processes: 16% Governance and Performance Management: 11% Source: Pulse of the Profession™: PMO Frameworks 4 ©2013 Project Management Institute, Inc. PMI.org/Pulse PMI-AGC GULF PROJECT MAGAZINE 40 31% INTERNATIONAL FEATURE Dealing with the Aspirations of Your Team Understanding others’ needs helps drive everyone in the right direction. Author: Sheilina Somani, FAPM, RPP, PMP, Contributing Editor PM Network September 2014 As project managers, how aware are we of others’ aspirational needs—their need for achievement, recognition, appreciation, reward, solitude and respect? Whether we interpret aspiration as taking in a breath or seeking attainment, are they very different? Are we project managers who provide space or ladders, or suffocation and slippery conditions? Being a project manager requires a certain measure of healthcare—for the project and all the stakeholders directly involved. The outset of the project is a challenging time of gaining trust and seeking honesty from stakeholders. Withholding information can be seen as deceitful; giving too much information can be seen as overkill. So how do we, as project managers, respond to such a demanding variety of people? We can approach this problem in six steps: • Understand our own aspirations • Accept that these will change over time • Acknowledge that we don’t have to agree with the aspirations of others—we simply need to accept that they exist and are valued by each individual • Seek understanding of others; encourage trust and openness • Listen carefully to hear what is expressed, rather than what you interpret •Act with integrity to ensure that these aspirations are actively managed We also need to give consideration to how we articulate or express our aspirations to those we report to and work with. It is proven that everyone works better when his or her aspirations are being attended to. For one person, this may be a verbal thank-you; for another, a financial reward. When we capture these clearly for ourselves, we can then create understanding through communicating with others. This, in turn, gives individuals permission to speak more openly of their needs. Whether we address these aspirations formally, informally or both, they require active consideration and response. Something as simple as the use of an agreed-upon nickname can encourage participation, a sense of belonging and team perspective. For people who are achievement-oriented, projects need to convey tasks in sufficient size as to be recognized as something worth completion, yet they must be compact enough to create a flow of achievement through task completion. There are also colleagues for whom the gift of time is the aspiration. They want to be able to confine work tasks to specific times so they can fulfill their roles outside of the project. Recognizing and supporting these aspirations, where practical, can enhance and deepen trust and respect. Ultimately, the project context will be the main driver for the flexibility around accommodating aspirations. The project manager who can consciously reflect upon, negotiate and address some of these aspirations will achieve constructive relationships with his or her colleagues. This, in turn, resonates with organizational ethics and values, and can then influence future behaviors of all involved. About the author: Sheilina Somani, FAPM, RPP, PMP, is the owner of the U.K.-based consultancy Positively Project Management, a senior project manager, a speaker and a mentor. Source: Originally Published in the September 2014 PM Network Magazine PMI-AGC GULF PROJECT MAGAZINE 41 MEMBER’S SUBMISSION Migrating For Better A Case Study from the Project Management Perspective to a Data Migration Project in a Multi Brand Fashion Retail Enterprise Author: Ajaz Ahmed (PMP) ERP’s are central to any big enterprise. Organizations implement one or more ERP solutions depending upon their business needs. Some keep upgrading the same ERP to its latest version, while others may switch to an entirely new ERP. In either case data migration forms an essential part of such an upgrade or implementation. Data migration is a subset of the overall ERP project, but given the importance, Introduction The below data migration perspective is taken as a case study from an ERP Implementation and Rollout project undertaken by a leading multi brand fashion retail enterprise in Saudi Arabia, whose business spans over the Middle East and North Africa, USA and the Commonwealth of Independent States (CIS). This project included 7 different countries, but the case study is based on three countries viz. Jordan, Egypt and Kazakhstan. The centralized Head Office has implemented an ERP system best suited to the organization’s needs. The business operations spread over different regions across the continents runs on a different ERP system(s). The business case here was to bring uniformity in data analysis, business projections, planning and decision making across the regions. This required an integration of business operations across regions to a centralized system which is based in company’s head office. So the objective was to implement only the selected required modules at the regions while the core functionalities were to be provided by the volume of activities involved, and its impact on the implementation it can well be viewed as a project in itself. Though it may or may not have a separate project charter, all other project management concepts are still applicable. Data migration being one of the core parts, the timely completion or delay in implementation of the overall ERP was heavily dependent on this task. The ‘big bang’ approach helps achieve the objective in the centralized system. The regional legacy ERP system(s) was (were) to be phased out. The essential part of this project was migrating their historical (summary) data and current (master) data to the central system. Project Scope This being a subset an implementation project, the scope of this data migration was limited to an integration of data from legacy system to the newly adopted system with minimum amount of data loss, maximum possible accuracy and least possible hurdles to the routing operations like sales, receipts and stock transfers. Acquisition of hardware, network structure and establishing connectivity was a part of the overall project, hence beyond the scope of this data migration project. Project Constraints 1.Rolling over to the new system with no or least possible blackout period for the normal day to day sales operations 2.Integrating the stocks received during PMI-AGC GULF PROJECT MAGAZINE 42 shortest possible time. But the pitfalls of such an approach are many, the biggest being business disruption or even a fallback. In such a scenario, the ‘trickle-migration’ is better suited. With this phased, sequential migration strategy the objective of smooth transition to the new system, with minimum business disruptions, can be achieved more or less up-to the expectation. migration period quickly enough without increasing the Lead Time for delivery at stores to ensure the latest stocks hit the store and are ready for sale Alternatives Evaluation The migration comprised of the international brands in which the company trades across the regions. Most of the brands in all these countries were common to either 2 or more regions. This implied that some or most of the master data already migrated for a brand X from one country was repeated in another country. This was increasing data redundancy on one hand and multiplying the efforts of cross-check, and data correction at all the migration level – pre, in process and post migration. An alternative evaluation was carried out and the regions were given access to the existing master data. They were asked to extract from source only those data which does not exist in the target data (only the differential was required). For the data common to both countries only additional attributes were to be migrated like cost and price in their local currency. MEMBER’S SUBMISSION Migration Strategy The source and target databases were from different vendors, with completely different structures and data definition. Also noticeable was the fact that although the legacy systems in all the 3 regions were similar, their data widely in terms of attributes and consistency. Taking these into consideration ‘customcoding’ interfaces to prepare input data was not considered a viable option. So a common migration mapping was developed and ETL - Extract, Transform and Load strategy was used for data migration. This task was divided among the regional and central teams, where the regional teams were responsible for the Extract function, while the central team took over the rest. The output of the extraction was in the form of flat files which were fed to the ERP through standard interfaces. Extensive training was given to the regional teams as to what was expected on their part and how they should achieve that. The source (legacy) system was the same in all the regions, so the extraction method adopted was common to all, and it provided a common input feed to the migration interface. The Transform and Load tasks were carried out with standard interfaces and batches. The POS rollout was tightly linked with the data migration – the former dependent on the latter. So to ensure that POS rollout takes place on the agreed date, it was incumbent that the data migration is completed with accuracy a day before. The accuracy here included the master information, merchandise hierarchy, pricing, seasonality and other related attributes. The migration was actually driven by the POS rollout schedule. This schedule, at the beginning of the project was somewhat like a big bang approach. All stores for a particular brand(s) in all countries to go live on the same date. But with progressive elaboration of the project, it was found that such an approach was not very feasible due to many a practical constraints. So the approach was revised, the data migration now drove the rollout. This slowed down the rollout, but it increased the efficiency of rollouts and decreased the possibilities of a fall back which was more in the earlier approach. Risks and Risk Management Strategies: 1. High Volume: The volume of data expected to flood the database was too high and posed a risk of affecting the performance of the servers. The team went ahead with this risk depending on the high performance servers. 2. Deadlocks: One of the risks was the clogging of processes due to heavy influx of data. This was realized as the project progressed. Data flow to different modules was done in the form of scheduled batches. In an event of such a risk occurrence the response was to disable the batches and enable them on priority basis so that the system keeps functioning without a shutdown. This was done by 24X7 monitoring of data flow by the team to ensure that data flows in a sequence and not in parallel thereby making the normal processing to function smoothly (with a few hiccups though) the chances of stock sitting in the warehouse awaiting to reach the store and eventually to the customer. 4. Negative stocks: The first phase of the migration was related migrating master information and replicating the same to the stores for rollout. Immediately on the rollout, was to kickoff the second phase, i.e. to migrate the stock on hand position from the legacy to the central system. This had to work in tandem failing which could have resulted in system showing negative stocks. This risk was mitigated by sequencing sales integration after the stock was migrated completely and making this a binding criterion. Sales integration was put on hold until SOH (Stock on Hand) was migrated. This delayed the visibility of sales in the system, but eliminated the chances of stocks going negative. Stakeholder Chart 3. Delayed shipments: During this period (from migration to rollout) any new shipment were blacked out from being processed in the legacy system. Anticipated delays in the extraction and data fixing were bound to have an effect on the overall migration and the POS rollout, which could have delayed the stocks from hitting the stores and inability to sell the newly arrived merchandise. To mitigate this risk the migration team worked out a remigration plan. This comprised of the regional migration teams translating the newly arrived stock information into a migration file so as to include the same within the migration thereby greatly reducing PMI-AGC GULF PROJECT MAGAZINE 43 MEMBER’S SUBMISSION Communication Most of the stakeholders mentioned above were identified at the beginning of the project and communications planned accordingly. Initially things got a bit awry as some of the stakeholders were not included in the RACI communications matrix. As the project progresses, these were also included in the loop. The RACI Matrix Tasks \ Members Project Heads Regional Team Migration Functional Application Team Team Developer Migration planning C R R, A Brand sequencing C R R, A Pre migration checks R, A R, A Pre migration data checks R, A R, A C,I R, A Actual migration process I R A Post migration process reviews R A R, A I C C Applications Handover I C, I I I I I Normal transaction processing/batches monitoring Posting and closeout of migration Batch Data Schedulers Integrators I I I R, A R, A A R, A I R R, A R R, A R: Responsible; A: Accountable; C: Consulted; I: Informed Migration Milestones Five major milestones were set for this migration project. 1.Migration of Master information – this was the go-ahead for the POS rollout at stores 2.Migration of Stock On Hand (SOH) – this served as the trigger point for integration of sales coming from the POS 3.Availability of Stock Ledger – this was a point where all transactions including sales, purchases, adjustments, etc were visible in the stock ledger 4.Posting to finance modules (*)– At this point all data from stock ledger and sales from POS along with the tax information were ready to be posted to financial module 5.Week closing – this final weekly phase was a part of migration close out. At this point the business gets to know its weekly standings for each brand against their budget. Also at this stage many a brand partners get to know the performance of their brands. (*) The forth migration milestone had to be removed from the list later as the regional finance teams were not ready yet with their posting processes. Impact of Overlooking the Communication Plan One of the stakeholders in the migration was the department of finance, which was driving a process of data integration to the company’s financial database and how such a data should be replicated to the financial modules. One of their primary requirements was how taxes should be reflected and that need was properly taken care of. During the project it was discovered that the Point of Service at the stores itself had the ability enable or disable the Value Added Tax during a transaction, which meant that the data flow from the Head Office to the store need not have this definition flown separately. The team decided to make deliberations on PMI-AGC GULF PROJECT MAGAZINE 44 whether to go ahead with making use of this function. Everybody agreed and the team went ahead with the decision and the regular process restarted, only to note awhile later that the finance department starting raising concerns that VAT was not being replicated. That was a big impact and the reason was that particular stakeholder was not taken on board while the deliberations were taking place, the communications plan was overlooked. Had that happened, this decision could not have been possible. Now to fulfil their requirements there was a workaround required, and this in a way introduced scope creep in the project. Resources For the data migration project the company utilized its internal human resources who were experienced with similar migration projects accomplished within the organization earlier. MEMBER’S SUBMISSION Quality assurance: Data was of utmost importance to this centralization as it was to be transformed into useful information that business decisions were to be made from. So it was important to allow quality data to be migrated. Checks were implemented at different levels of migration: Source 1 • Primary Migration File • Secondary Source 2 • Primary Migration File • Secondary Source 3 • Primary Migration File • Secondary Pre-Migration data check • Clearance or Rejection 2.In-process data check – Data which was cleared at the first step went through to a staging phase. A second check was applied here which filtered out data based on a criteria like mappings, costing, pricing, classifications, etc. The originator was asked to re-correct these, while the clear data went through to the final phase. 1.Pre migration data check – a set of certain basic checks which cleared or rejected the input data altogether. The rejected data was sent back to the originating region for review and correction. In-Process Migration data check Post- Migration data check • Filtering out rejected data • Post Migration fixing 3.Post migration data check – This involved comparison of statistics of data fed for migration and what actually got migrated. Costs, prices, hierarchy, and other attributes submitted and what actually reflects in the migration. Any discrepancies found at this stage were escalated to concerned users for the post migration data fix. The Migration Schedule Network Diagram: E M F Start A B C D G J L K End N H I Tasks Legend: A – Pre-migration data check B – Migration to Staging C – Migration to central database D – Master definition to store linking E – Outbound (B2B) Interface deployment F – Replicate to Store Inventory Module G – Replicate master definitions and pricing to stores H – Replicate to warehouse management module I – Regular processing interface deployment J – Stock Migration K – Normal transaction processing and integrations L – Data availability for B2B interface M – Posting to reporting module (closing) N – Posting to Finance module (1) (1) (1) (2) (3) (1) (1) (1) (2) (4) (2) (2) (2) (2) Paths on the network: 1. A-B-C-D-G-J-K-L {Critical Path} 2.E-M 3.A-B-C-D-F-K-L 4.A-B-C-D-F-K-M 5.A-B-C-D-H-K-L 6.A-B-C-D-H-K-M 7.A-B-C-D-F-K-N 8.A-B-C-D-I-K-L 9.A-B-C-D-I-K-M 10.A-B-C-D-I-K-N 11.I-K-L 12.I-K-M 13.I-K-N (14) (5) (9) (9) (9) (9) (9) (10) (10) (10) (6) (6) (6) The task durations are shown here are from migration of a brand with an average of 70,000 stock keeping units (SKU’s), having a minimum of 4 attributes associated with each SKU and the brand consisting of around 9-10 trading stores PMI-AGC GULF PROJECT MAGAZINE 45 MEMBER’S SUBMISSION Timeline of the migration project for one country with 21 brands: Below is the graphical timeline of the major milestones achieved by brand. The taller the bars, the more was the time consumed (number of days) in achieving those milestones. The lower the bars, the quicker were the accomplishments of tasks. The project span over a period of 10 Months (with a few breaks in between) from September 2013 to June 2014 Migration: Major Milestones 180 160 140 112 100 80 63 5 7 8 8 2 14 14 4 8 TAP PUM PAR GAP OKA MON ALA BLA WOS 24 LPS 4 LSZ ZYK LVR CNK 8 11 20 0 7 GRG 36 DYN 19 ADL 20 COR 19 USP 40 QUZ 60 STM TIMELINE 120 BRANDS Creation of MOM file for POS Stock Migration RTLog Integration to RESA Integration of sales to trandatahistory Integration of sales to EBS STG Closing of first trading summary (Consider branding as fully LIVE at this stage) X-axis represents the abbreviated names of the brands Y-axis represents the number of days The number of days is displayed over the “Stock Migration” bar, as this milestone was a cornerstone of the project accomplishment of which paved way of the rest of the normal integration processes. EBS posting was later excluded from the scope and was handled separately, hence shown only in the initial 6 brands. Conclusion: Data migration forms an essential part of an ERP implementation project, especially where there is a rollover from an existing system to a newer one. Timely and accurate data migration ensures a seamless switch to the new system. Migration along with its replication to the point of service destinations guarantees the least possible downtime in business transactions. Whether or not a data migration has a separate project charter, almost all project management concepts can still be applied and it may well be treated as a project in itself. PMI-AGC GULF PROJECT MAGAZINE 46 MEMBER’S SUBMISSION Brand ID Brand Name Brand ID Brand Name ADL Adelisk LVR La Vien Rose ALA Aldo Shoes and Accessories MNS Marks and Spencer BLA Suite Blanco MON Monsoon CLK Clarks NIN Ninewest CNK Charles & Kieth NLK New Look COR Cortefiel OKA Okaidi CZN Collezione PAR Parfios DYN Dynamite PUM Pumpkin Patch FGK FG Kids QUZ Quiz FGW FG Women SGT Sergeant Major FLO Flormar SPS Call it Spring FNF F&F Clothing - TESCO STM Steve Madden GAP GAP TAP Tap A L'oeil GRG Garage TSM Topman - Topshop JEN Jennyfer USP US Polo LEC Le Chateau WOS Women's secret LPS Lipsy ZYK Ziddy Kids LSZ Lasenza About the author: Ajaz Ahmed (PMP) The writer is a gulf based, certified project management professional (PMP) originally from Aurangabad, India. He holds a post graduate degree in Computer Applications. He is currently occupied with a leading multi brand fashion retail chain in Riyadh, Saudi Arabia. His area of expertise includes Project Management, ERP solutions – implementation and support, Business-To-Business (B2B) applications, Application-To-Application (A2A) integrations, Point of Sale implementation and rollouts. He has experience in ERP’s like Oracle Retail, EBS, and Infinity. He can be reached at [email protected] PMI-AGC GULF PROJECT MAGAZINE 47 IN A CHANGING WORLD, INNOVATION THAT ENDURES In this period of unparalleled change, Pentair is working even closer with the energy industry to ensure operators have the products and services they demand. Our customers depend on us for everything from isolation and flow control to filtration and separation, thermal management, safety control, and complete turnkey design services. Which is why we’re constantly looking to advance our leading range of innovative and established brands. Trust Pentair to help you embrace the change. For more information on Pentair’s industry-leading products and services, visit www.pentair.com PENTAIR.COM TECHNICAL The Importance Of Effective Project Management in the Oil & Gas Industry Author: Kiran Gholap, Manager Project Management - Sharjah Manufacturing Plant, Pentair Valves & Controls Project failure, exceedance of budget and timelines, negative organizational impact, and an economically unviable outcome are all potential consequences of a lack of efficient project management. A recent report from Ernst & Young that investigates current oil & gas industry performance reveals nearly two thirds (64%) of multibillion-dollar technically and operationally demanding, large scale oil & gas projects continue to exceed budgets. Furthermore, almost three quarters (73%) of the 365 projects examined in the Spotlight on oil & gas megaprojects report failed to meet schedule deadlines . The impact of such overruns can be catastrophic, costing the oil & gas industry billions of dollars, and demonstrates the significant need for effective project management. Controlling influencing Factors Various internal and external factors influence the development of a project and can hinder or enhance its success, depending on how the project management process is executed. This is particularly important in the oil & gas sector and, more specifically, valve manufacturing industries. With multiple specifications and engineered products, tight budgets and schedules, stringent material and quality requirements, and a high level of risk management, the importance of effective project management is critical. Add to that the impact on the end user’s project schedule, and the high probability of changes in scope - which require a strong change management system - and it is clear that a team needs to implement a robust project management plan in order to guarantee the successful realization of the project. Thorough upfront planning, rational forecasts and efficient organization can address and overcome internal factors in order to improve overall project performance. These obstacles include inadequate planning, access to funding, aggressive estimates and optimism bias. Effective handling of such aspects will also help to ensure that deadlines are met and unnecessary costs are avoided. Teams can also face issues such as regulatory delay or policy uncertainty, as well as the effect of inadequate infrastructure and geopolitical challenges, for example financial and supplier market improbability. While these external factors are often harder to control, efficient project management can help to mitigate their impact. Investment in training can help generate project success, too. Pentair devotes time to training a dedicated PMP certified project management team in confronting and managing these types of challenges to ensure a positive and profitable outcome. Well-Defined Process In order to achieve the successful delivery of a project, a distinct project management process must be employed to facilitate efficient organization, monitoring and execution. Comprising standardized forms, checklists, templates and fixed phases, a clear project life cycle will reap dividends for the outcome of the project, no matter what the size or complexity. In addition to outlined project phases, an established project management information system consisting of a software database to track elements such as activity, scope, schedule, cost and risks of the project will also aid project development. Such a system, incorporating further information such as changes required, issues raised and lessons learned, combined with a defined project management plan, will facilitate effective execution, monitoring, control and closing of the whole process. Companies have a duty to balance competing project constraints, including but not limited to scope, quality, schedule, budget, resources and risk. Implementing thorough planning and organization, along with identification and address of the various needs, concerns and expectations of stake holders, will help to ensure comprehensive and successful project management throughout the development of the project. In addition, periodically reviewing lessons learned acts as a tool to benefit the team by facilitating continuous improvement, highlighting preventative actions, controlling risk management and planning and executing future projects. This reflection also expands into enhancing other areas, such as on time delivery, which contributes to the overall performance of projects. Focus on Successful Project Management In a world so reliant on effective and proficient global communication, and full of economical uncertainty, project needs are intensifying. Projects situated in high-pressure environments with varying demands and risks call for teams with strong project management skills in order to achieve the desired results. Projects also require shortened development and lead times and increased productivity, all the PMI-AGC GULF PROJECT MAGAZINE 49 TECHNICAL while maintaining and improving customer relations. These aspects of the project process must be assisted by comprehensive project management, consisting of upfront and monitored planning, efficient control of human resources and consistent, thorough organization in order to achieve a positive outcome. In the oil & gas industry specifically, investing heavily in manufacturing operations enables companies to provide customers with improved product solutions and a reliable supply chain to further ensure the success of a project. Pentair offers global expertise and experience in the energy sector, along with high-quality solutions for a wide range of applications and projects in the oil & gas industry. Extensive technical knowledge and engineering support solutions from companies such as Pentair optimize and enhance customers’ operations, facilitating the project management process to deliver a successful project. ABOUT PENTAIR VALVES & CONTROLS Pentair’s Valves & Controls business is a world leading manufacturer of valves, actuators and controls for the most challenging applications throughout oil and gas, power, mining, chemical, food and beverage and building and construction industries. Through its portfolio of trusted brands, Pentair Valves & Controls provides market-leading products, services and solutions that bring vital infrastructure to local communities around the globe. With a strong global presence, technological know-how and engineering expertise, Pentair Valves & Controls enables customers to keep their operations running safely, minimize downtime and enhance lifecycle performance. Key brands include Anderson Greenwood, Biffi, Crosby, Fasani, Keystone, Narvik-Yarway, Raimondi, Sempell, Vanessa and Westlock. For more information on Pentair Valves & Controls, visit http://valves.pentair.com/valves/. ABOUT PENTAIR PLC Pentair plc (www.pentair.com) delivers industryleading products, services and solutions for its customers’ diverse needs in water and other fluids, thermal management and equipment protection. With 2013 revenues of $7.5 billion, Pentair employs approximately 30,000 people worldwide. IN A CHANGING WORLD, INNOVATION THAT ENDURES In this period of unparalleled change, Pentair is working even closer with the energy industry to ensure operators have the products and services they demand. Our customers depend on us for everything from isolation and flow control to filtration and separation, thermal management, safety control, and complete turnkey design services. Trust Pentair to help you embrace the change. For more information on Pentair’s industry-leading products and services, visit www.pentair.com PENTAIR.COM ADVERTISEMENT Industrial Gases Praxair + Refinery Technologies Get More Out of Your Refinery Refiners today face a growing number of operational and regulatory challenges that can limit productivity. Praxair has developed a complete line of products and services to address refiners’ needs for today and tomorrow. Whether the goal is increased throughput, lower fuel costs, improved operational flexibility, or reduced emissions, we can help. With over 50 years of industry experience and a world-class project execution team, we have the knowhow and tools needed to help you address your refinery processing targets. Additionally, Praxair offers a full range of industrial gas products and services. Save Energy and Reduce Emissions Praxair’s Oxyfuel technology is a proven methodology that can debottleneck and improve the efficiency of most refinery fired heaters. In addition to fuel savings, heater capacity can be improved by as much as 25%. Depending on how the technology is applied, NOx emissions can also be substantially lowered. Praxair’s CONOx system reduces CO, NOx, and NOx precur- sors (ammonia/HCN) in FCC regenerator off-gas. NOx reductions of up to 60% are achievable. By allowing more regenerator operating flexibility, regenerator temperature, air blower capacity, and velocity limitations can all be addressed. Improve Capacity Oxygen enrichment for the sulfur recovery unit is a proven technology for increasing the sulfur plant capacity. Standard enrichment is typically capable of improving capacity by up to 30%. Coupled with additional burner and equipment changes, a capacity increase of over 100% is possible. FCC enrichment can address air blower constraint, regenerator velocity, and recovery section limits. Regenerator capacity, the ability of the regenerator to burn coke, can be increased by up to 35%. Praxair’s Oxygen Enhanced Reforming (OER) is a low capital proprietary technology which can be used to increase steam methane reformer hydrogen production by up to 20%. Add Oxygen to Improve Processes (versus air) NOx SOx* CO2 Capacity Fuel Increase Savings Oxygen Enrichment for Sulfur Recovery Units (SRU) 30%-100% Oxygen Enrichment for Fluid Catalytic Cracker (FCC) 10%-35% FCC with CONOx 5%-10% Oxy-Fuel in Process Heaters 5%-25% Oxygen Enhanced Steam Methane Reforming 10%-20% • • • • • • CO • • • • • • *FCC oxygen enrichment can improve SOx capture catalyst performance. PMI-AGC GULF PROJECT MAGAZINE 51 ADVERTISEMENT Optimize Hydrogen Systems and Fuel Gas Management Praxair has proven and user friendly modeling and optimization tools to assist in improving SMR energy efficiency and optimizing the refinery hydrogen, fuel gas and steam systems. Pressure swing adsorption is a cost effective method for recovering high purity hydrogen from lower purity fuel gas or purge streams. This can directly decrease on-purpose hydrogen requirements and indirectly lower CO emissions. Refinery gas upgrading is a Praxair proprietary technology that utilizes partial condensation to recover both hydrogen and hydro- carbons from the fuel gas system. Hydrogen can be recovered from low hydrogen purity fuel gas streams with nominally 95% recovery. In addition, it can be used in with other hydrogen purification methods to improve hydrogen recovery or purity. The refinery gas processor enables the use of problematic fuel gas streams as feed for a steam methane reformer or as a fuel for a gas turbine. This patented process is well suited to fuel gas streams with a high olefin content and varying quality. Environmental Applications Praxair’s wastewater treating applications can increase BOD/ COD response, mortality testing results, and destruction of key contaminants. In addition, the production of bio-sludge can be reduced. Our system can be installed without draining the basins and achieves a high oxygen utilization with significantly lower electrical consumption than air based units. These attributes combine to lower wastewater treatment costs. VOC recovery technology uses liquid nitrogen condensation and can be a cost effective replacement for thermal incineration or carbon adsorption. The process uses indirect cooling thus al- lowing the nitrogen to be reused in the refinery nitrogen system. In many cases the recovered product and avoided fuel gas con- sumption for incineration can result in significant savings. Replacing the fuel gas sweep in the flare line with nitrogen can be cost effective and result in lower CO2 emissions since there is no longer a need to burn any sweep gas in the flare. Praxair + Oxygen Enhanced SMR Reforming Hydrogen plants owners who can benefit from incremental increases in hydrogen production are looking at new, low cost ways to expand capacity in their existing facilities. Praxair’s patented oxygen enhanced reforming (OER) technology provides a low capital cost way to increase hydrogen production from an existing steam methane reformer (SMR). How It Works with Any Reformer No matter what type of reformer is in use – box, cylindrical, terrace wall – oxygenenhanced reforming can increase capacity by 10 to 15% depending upon the nature of the bottlenecks that currently exist in the hydrogen plant. Combustion air is enriched with oxygen in an OER retrofit to the existing SMR. The elevated oxygen concentration increases hydro- gen throughput by increasing the amount of heat available to drive endothermic reforming reactions. It does this without exceeding process pressure, induced draft fan flow, tube metal temperature, radiant cross-over temperature, and NOx emission limitations. Installation Is Simple – Results Are Reliable Syngas to Back-end Decreas Designed with simplicity and safety in mind, Praxair OER retrofit equipment includes an oxygen supply system, an oxygen flow control skid, and an oxygen injection device. Depending on the SMR configuration, oxygen can be injected either into the burner air feed duct or into the combustion zone inside the furnace. The oxygen flow control skid is custom designed to integrate controls and produce the required oxygen flow rate. The end result is a steady and reliable flow of oxygen. Flue Gas to Heat Recovery N2 Air V Fired Reformer Uniform Reformer Tubes Air Fu Burner Fuel Process Feed Lanced O2 As a leader in the supply of gases, Praxair can design and deliver an oxygen supply system that fits the refinery and its location. If the refinery does not currently have oxygen available in bulk on-site, a liquid oxygen storage tank or an oxygen generation plant may be installed. The oxygen supply system and oxygen flow control skid can typically be installed without shutting down PMI-AGC GULF PROJECT MAGAZINE 52 100% H2O CO2 Combustion Air Sparged O2 hydrogen operations. Installation of the oxygen injection device could take up to one day of SMR outage. The OER retrofit can be installed and commissioned within six to twelve months from contract completion. ADVERTISEMENT OER – A Low Cost, High Yield Option Method The characteristics of common SMR debottlenecking options are shown in the table at right. Among the options, OER stands out because it significantly increases hydrogen production rates at low capital cost. An OER retrofit is less expensive than a pre-reformer retrofit, has a smaller impact on export steam rates, and does not require any modifications to the convective section heat recovery design. While a post-reformer (for example, a gas-heated reactor) can produce greater quantities of incremental hydrogen than OER, it requires a much larger footprint and capital investment. The simple reliable equipment, low capital investment, and incremental hydro- gen production capacity make Praxair’s oxygen enhanced reforming technology the optimal choice for retrofitting an SMR. Hydrogen Rate Cap Cost Comments Reduce Steam/ Carbon + 3-5% Low Tube and catalyst life implications Modify WGS Reactor + 3-5% Medium 2 stage HTS; HTS/ LTS; MTS Upgrade Reformer + 5-15% Med-High New catalyst; replace tubes w/ better metallurgy; modify pigtail/tunnel design; upgrade controls Install Prereformer + 8-15% Medium Requires significant changes to reformer convective section; considerable drop in steam export Install OER + 10-15% Low Simple installation, equipment, and controls; non-invasive Install Postreformer + 20-30% High Large footprint; capital intensive Table of Common SMR debottlenecking methods, incremental hydrogen production capacities and capital costs Praxair + Improved Heater Performance Praxair’s oxy-fuel combustion technologies are a flexible and low-cost method to increase productivity, decrease fuel consumption and reduce NOx and CO2 emissions. Our refining specialists have collaborated with refiners for over 50 years and have intimate knowledge of fired heaters and combustion operation. Syngas In addition, we have extensive to Back-end project execution and operations experience gained through over 70 years of combustion applications. Our oxygen combustion technologies have been implemented in some of the largest manufacturing facilities in the world including 40 refineries. This experience enables us to evaluate and implement oxygen applications in fired heaters with minimal to no downtime and with an ever present focus on safety. Fired Reformer Improve Heater Efficiency and Reduce CO2 Applying Praxair’s oxy-fuel combustion Reformer technology to a fired heater in the refinery Tubes will improve heater efficiency with a corresponding reduction in CO2 emissions for the same duty transferred to the process. Process Replacing air contain- ing nitrogen with Feed oxygen will lower total flue gas volume and improve convection section effectiveness. 2 If air isLanced entirelyOreplaced by oxygen, fuel consumption can be decreased as much as 30% using oxygen burners. Increase Heater Capacity Instead of benefiting from the decrease in fuel consumption, a refiner can take advantage of the higher absorbed duty to increase charge rate or fractionation efficiency (depending on economics). In addition, the higher emissivity of the revised flue gas composition and the ability to tailor flames Flue Gas to to avoid hot Heat spots Recovery also assist the refiner in increasing the absorbed duty to the desired levels. Depending on the limit encountered, an increase in absorbed duty of up to 30% can be achieved. And, in most cases, average tube temperatures are decreased. Oxy-fuel technologies can be installed and started up without shutting down the heater. Major equipment required for installation is limited to flow control skids, small insertable burners or lances, or a sparger in the case of enrichment. The small amount of required equipment results in a system that requires little space and is low in capital cost. Decreased Fuel Gas Volume 100% H2O CO2 N2 26% H 2O CO2 Air VS Uniformity of Heat Transfer NOx Reduction Using oxygen lances or oxygen burners will result in a lower flame temperature due to the increased recirculation of flue gas. The lower flame temperature will significantly reduce NOx. A NOx Burner Fuel reduction of 50% when compared to Combustion a low NOx burner Air is possible. Oxy-fuel burner installed Sparged O2 Flexible, Low Cost Technology Air Fuel Ops Oxy Fuel Solution Burner or Lance in a refinery vacuum heater PMI-AGC GULF PROJECT MAGAZINE 53 ADVERTISEMENT How it Works Oxygen jets are used to establish internal flue gas recirculation, control flame pattern and length, and improve flame stability, when lancing is used the same effect is accomplished. The placement of the lances is dependent on current heater issues and the goals of the refinery operator. By installing this technology the heater flame is diluted, minimizing NOx and peak temperatures, and circulation in the fire box has been increased, improving heat transfer and uniformity. Our proven oxy-fuel technology can be implemented in three ways to improve heater performance: •Enrichment of combustion air using a sparger. • Replacing a portion of combustion air by inserting oxygen lances into the heater box • Total replacement of the combustion air burners with oxygen burners Praxair + Refinery Fuel Gas Management Optimizing Hydrogen Use and Energy Efficiency Recovering hydrogen and heavier hydrocarbons from refinery fuel gas can help refineries save on both hydrogen and fuelcosts. Praxair optimization technologies and expertise can reduce the volume of hydrogen needed, reduce operating and capital costs, enhance margins, and decrease greenhouse gas (GHG) emissions. Put simply, managing the fuel gas system is integral to running a refinery at optimal efficiency. Inefficiencies can often occur when the fuel gas and hydrogen systems are too closely linked, with purges and bleeds from the hydrogen system going directly to fuel gas and significantly impacting on both its quality and quantity. Praxair has the in-house expertise to analyze such systems and find technologies to meet overall energy and hydrogen requirements. The refinery further benefits from having Praxair design, build, own and operate these recovery facilities; we have a long and successful history of operating such processes safely and efficiently. There are obvious direct benefits to upgrading your fuel gas management and hydrogen recovery systems, but there is also an indirect benefit to raising the overall hydrogen system purity. Rather than routing low-to-mid purity hydrogen to the hydrotreater, Praxair can help you obtain greater value from these process streams by upgrading the hydrogen. Higher hydrogen purity will increase the purity of the recycle stream, reducing fuel gas production in the hydrotreating units. This can lead to both improved yields and performance or longer catalyst run lengths in hydrotreating units. Hydrocarbon Recovery with Cryogenic Systems There are times when residual fuel gas is too rich for existing combustion systems, which limits one’s fuel gas management options. To avoid costly upgrades, refiners can opt to keep their fuel system as is, and instead “drop out” heavy hydrocarbons. Get More from Fuel Gas Management Managing the fuel gas system provides multiple benefits for refineries: • Reducing on-purpose hydrogen requirements (avoiding capital and/or operating costs) • Lowering overall hydrogen operating costs through recovery and recycling of purge gas streams • Reducing fuel costs • Improving fuel gas quality, burner control and emissions • Increasing operational flexibility • Decreasing CO2 emissions PMI-AGC GULF PROJECT MAGAZINE 54 Praxair can facilitate heavy hydrocarbon removal and balance a given fuel gas system by coupling PSA hydrogen recovery with a cryogenic system. This combined system offers added benefits by capturing value from the liquid hydrocarbon streams present in fuel gas. Hydrogen Recovery with PSA Systems Refinery customers depend on Praxair to deliver hydrogen reliably and cost effectively. One way we do this is by deploying hydrogen pressure swing adsorption (PSA) systems – an extremely cost-effective way to selectively recover high purity (99.99%) hydrogen from lower purity fuel gas or purge streams. This directly decreases on-purpose hydrogen requirements and indirectly lowers CO2 emissions. Praxair pioneered the PSA and the molecular sieve technology that is the basis for such systems. ADVERTISEMENT Praxair + Hydrogen Supply System Getting More from Your Hydrogen Supply System In the U.S., Praxair’s Gulf Coast hydrogen pipeline system is one example of Praxair’s commitment to service the hydrogen needs of the refining industry. This network extends over 300 miles and has a hydrogen capacity of approximately 1 billion scfd. The system is managed from our state-of-the-art pipeline business center, which monitors the system 24 hours a day, 365 days a year, allowing Praxair to respond quickly to changes in customer needs. Reliable, Efficient, and Flexible Supply Because dependable hydrogen supplies are critical to refinery operations, we continually strive to create the most reliable hydrogen supply available. Praxair uses its extensive operating experience to design and build its hydrogen facilities to high standards, to achieve reliability. It doesn’t stop there. We will also strive to enhance supply reliability and to offer customers a high level of operational flexibility through investment in necessary infrastructure where possible, including pipelines and by-product sources. To further illustrate Praxair’s creativity and commitment to the supply of hydrogen to our customers, we created a first- of-its-kind commercial hydrogen storage cavern for our U.S. Gulf Coast pipeline customers. It is the only hydrogen cavern developed, owned, and operated by an industrial gas company. The cavern enables Praxair to respond quickly to sudden demand changes and provide virtually uninterrupted service to customers during planned or unplanned maintenance and is an example of the value we place on being able to ensure reliable, efficient and flexible supply of hydrogen to our customers. Project Execution Capabilities Customers can call upon our global design and engineering resources to build reliable hydrogen production facilities. Praxair is focused on constructing the most effective industrial gas plants available – on time, on budget and using stringent industry safety standards. In fact, our Global Supply Systems organization has designed and built 34 stateof-the-art steam methane reformers. Praxair’s project cost, scheduling and execution performance is consistently ranked at the top of our field by organizations such as International Project Analysis (IPA). But we don’t rest on our laurels. Each new project is seen as an opportunity to improve upon the last. Through detailed upfront engineering, close relationships with key suppliers, modularization, and continuous improvement in construction techniques, we are able to accurately define and control a project’s scope and cost. The result is an industrial gas supply that meets or exceeds customer expectations. Operational Excellence Operating industrial gas plants is our core business. Through decades of hydrogen production and continuous operational improvements, we have gained an industrywide reputation for providing the reliability and efficiency that refiners require. By managing a given hydrogen supply, we are often able to incrementally improve reliability and uptime. This improvement in on-stream reliability translates into increased throughput and the potential for millions of dollars per year in incremental revenue. In addition, Praxair can increase hydrogen plant efficiency for both feedstock and fuel. Energy costs typically make up 60% to 70% of the total all-in cost of producing hydrogen. As shown in the example chart, small changes in energy usage can have a sizeable impact on operating costs. Best of all, because of our experience and knowledge of the process, Praxair can guarantee a given energy efficiency rate over the life of the supply agreement. PRAXAIR HYDROGEN SUPPLY PROVIDES ENERGY EFFICIENCY Annual Cost2 $(MM) Praxair Base Efficiency1 – 3% Inefficiency $2.9 6% Inefficiency $5.7 9% Inefficiency $8.6 Base case efficiency guaranteed by Praxair Assumes 100 MMSCFD SMR and energy cost of $7.00 per MMBTU 1 2 PMI-AGC GULF PROJECT MAGAZINE 55 ADVERTISEMENT Hydrogen Optimization Whether you need to expand hydrogen capacity or get more out of existing systems, Praxair has ways to improve efficiency and maximize hydrogen supply throughout your operation. We provide a range of fuel gas management technologies that can help improve hydrogen availability, reduce energy consumption, and improve emissions. But we don’t stop there – Praxair engineers continuously seek new ways to increase refinery productivity. Low cost plant efficiency improvement It is normal for SMR efficiency to vary constantly due to process variation, rate changes, control system effects and environmental factors. Very often, these hour-to-hour and day-to-day changes can mask significant trends and changes of energy efficiency which go unrecognized for long periods of time or missed completely. Praxair’s SMR performance monitoring tools enable an operator to easily identify and quickly respond to factors that impact energy efficiency. This approach and tool have been applied to hydrogen plant operating data for the generation of SMR Operating Maps which provide valuable insight to guide timely low cost improvement actions to maximize energy efficiency, minimize energy loss and waste. When transitioning between two operating states, the linear magenta track represents the ideal, energy efficient state transition path but in reality the hydrogen plant tends to follow the less efficient blue tracks. Eventually, the desired hydrogen rate is achieved but the end state may fall short of best efficiency because of Process hysteresis and Control system deadbands. Praxair through our extensive operating experience and implementation of advanced process control tools, insures that our plant follows closely the ideal energy efficient state transition path. For the given illustration, implementation of Praxair’s process control technology resulted in energy savings of almost 1.3 btu/scf. As part of Praxair’s operations excellence program, we implement proprietary hydrogen plant advanced control systems at all our hydrogen plants. This approach allows Praxair to achieve sustained performance improvement at our hydrogen plants resulting in measurable benefits as identified for a 20 MMSCFD hydrogen plant. Numbers are net energy efficiency deltas (btu/scf) relative to a base reference. Magenta border are reference cells from which net efficiency delta numbers are calculated. It All Adds Up Praxair refinery application developers have the industry experience and the operations and engineering knowledge to help customers optimize their hydrogen and energy resource requirements. The Praxair team of specialists is focused on driving refinery productivity through integration and optimization of the refiners’ industrial gas supply system. This results in a highly productive system which drives down cost and provides supply where it’s needed. PMI-AGC GULF PROJECT MAGAZINE 56 When you need reliability and experience, choose Praxair. • One of the largest hydrogen suppliers in the world • Expertise in hydrogen plant design and operation • An industrial leader in safety • Hydrogen gas supply for: – Refinery Gas Processing – Enhanced Oil Recovery – Fracturing – Petrochemicals For more information on Praxair, please call 1-800-PRAXAIR © Copyright 2014, All Rights Reserved. www.praxair.com PROJECT REPORT Bahrain List of Projects PROJECT FACILITY BUDGET ($ US) Manara Development - Investment Gateway - Bahrain - Phase 1 Service Centres 130,000,000 EPC ITB EWA - Water Transmission Development project - Water Stations Ground Storage Tanks Distribution Network 60,000,000 Construction Alba - Aluminium Potline 6 Expansion Aluminium Potline 2,500,000,000 Feasibility Study Majis - Central Aerobic Treatment Plant (CETRPII) Water Treatment 30,000,000 EPC ITB Al Baraka Banking Group - ABG Towers Office Buildings 100,000,000 Construction BAPCO - Bapco Modernization Program (BMP) Refinery 6,000,000,000 FEED ITB BAC - Bahrain International Airport Modernization Program Airport 4,700,000,000 Design MOW - Tubli STP Expansion - Phase 4 Sewerage Treatment 130,000,000 EPC ITB Bapco - A-B Pipeline Oil 350,000,000 FEED Ministry of Housing - NBNT Primary Sewerage and Treated Sewage Effluent Network Sewerage Treatment 150,000,000 EPC ITB MOW - Alba Roundabout Intersection Roads 96,000,000 EPC ITB Naseej Properties - PPP Housing Development Residential Development 550,000,000 Construction EWA - 400kV Transmission Development - Cables & Accessories Utilities 60,000,000 EPC ITB EWA - 400kV Transmission Development - Transformer and Reactor Transformers 70,000,000 EPC ITB EWA - 400kV Transmission Development - Substation Switchgear and Civil Works Substations 100,000,000 EPC ITB Ministry of Housing - NBNT Sewage Treatment Plant and Long Sea Outfall Sewerage Treatment 100,000,000 EPC ITB EWA - 400kV Transmission Development - Overview Power Transmission Lines 230,000,000 EPC ITB Noga - Liquefied Natural Gas Import Terminal Liquefied Natural Gas (LNG) 300,000,000 Feasibility Study MOH- North Bahrain New Town (NBNT) Mixed-Use Development 5,000,000,000 Engineering & Procurement EWA - Water Transmission Development Project 2009-2012 Pipeline North Installation Works - PIN Water 15,000,000 Engineering & Procurement Abahusain Fiberglass - Fiberglass Plant Fiberglass 200,000,000 EPC ITB NOGA - Onshore Deep Gas Exploration Gas Exploration 200,000,000 Engineering & Procurement JBF Bahrain - Polyester Film Plant Polyester 200,000,000 Construction GPIC - Urea Plant Expansion Urea 900,000,000 Feasibility Study GPIC - Ammonia Plant Expansion Ammonia 600,000,000 Feasibility Study GCC Railway Network Railway 4,000,000,000 Feasibility Study EWA - 220kV and 66kV Transmission Development Scheme 2012 - 2016 Power Grid 400,000,000 PMC ITB The Friendship Causeway Bridge 4,000,000,000 Design MOW - Muharraq Ring Road _ Phase 1 Roads 70,000,000 EPC ITB Sugar Factory Food Processing Plant 150,000,000 Construction PMI-AGC GULF PROJECT MAGAZINE 58 STATUS PROJECT REPORT PROJECT FACILITY BUDGET ($ US) STATUS Manara Developments Company - Wahat Al Muharraq Mixed-Use Development 106,000,000 Construction Banader Hotels Company - Rotana Hotel Hotels 79,600,000 Construction Tashyeed Properties - Sukoon Tower Residential Development 146,000,000 Construction Durrat Marina Mixed-Use Development 1,300,000,000 Construction Marsa Al Seef Project Mixed-Use Development 2,500,000,000 Design Diyar Al Muharraq Development - Diyar Al Muharraq Housing Development Mixed-Use Development 500,000,000 Construction Four Seasons Group - Four Seasons Hotel Hotels 350,000,000 Construction MOW - North Road Roads 90,000,000 Design Muharraq Mall Company - The Muharraq Seef Mall Malls/Retail Outlets 46,000,000 Construction EWA - Three New Power Plants IPWP (Independent Power & Water Project) 5,000,000,000 Feasibility Study Diyar Al Muharraq Development - Overview Mixed-Use Development 3,200,000,000 Construction Ithmar Bank - Dilmunia Health Island Mixed-Use Development 1,600,000,000 Engineering & Procurement EWA - Water Transmission Development Project - Water Station North Distribution Network 60,000,000 Engineering & Procurement Ministry of Municipalities and Urban Planning - Howar Island Solar Power Plant Solar 100,000,000 Feasibility Study Edama - Al Jazayer Beach Development Theatre/Entertainment/Leisure Facilities 1,200,000,000 Feasibility Study Manama North Shore Redevelopment Roads 500,000,000 Construction Diyar Al Muharraq Development _ Infrastructure package Mixed-Use Development 500,000,000 Engineering & Procurement Muharraq Grand Park Theatre/Entertainment/Leisure Facilities 63,200,000 Design EWA - North Town Power Transmission - Phase 3 Substations 179,000,000 PMC ITB EWA _ New System Control Centre (SCC) Utilities 120,000,000 PMC ITB MOW - Al Fateh Highway Upgrade Roads 50,000,000 Design EWA - Water Transmission Development Project - Pipeline West Installation Works - PIW Water 20,000,000 EPC ITB Bapco -No.3 Sulphur Recovery Unit Modification Sulphur Recovery 18,000,000 Engineering & Procurement MOW - Sh.Khalifa Bin Salman Highway- Interchange 2 and The Roads between Roundabouts 13 - 18 Roads 70,000,000 EPC ITB Bapco - Fire Fighting System Enhancement Service Centres 35,000,000 FEED United Steel - Steel Complex Steel Plant 1,200,000,000 Engineering & Procurement Bahrain New Airport Airport 3,000,000,000 Feasibility Study Muharraq Sewage Treatment Plant - Deep Tunnel Sewer (DTS) Sewerage Treatment 280,000,000 Construction Cnim - Waste-to-Energy Plant Waste Recycling 500,000,000 Engineering & Procurement EWA - Water Transmission Development Project - Pipeline South Installation Works Water 11,000,000 EPC ITB EWA - Water Transmission Development Project -Water Station Elevated Services Reservoirs Water Storage Tanks 50,000,000 Construction EWA - 220kV and 66kV Transmission Development Scheme Power Transmission Lines 330,000,000 Construction Bahrain Bay Development - Bahrain Bay Mixed-Use Development 2500000000 Construction BIBF Headquarter Education/Training Facilities 60,000,000 Design Amwaj Islands Mixed-Use Development 1,500,000,000 Engineering & Procurement Durrat Al Bahrain Mixed-Use Development 6,000,000,000 Engineering & Procurement Noga New Headquarters Office Buildings 400,000,000 Design KBSP Service Area Service Centres 200,000,000 EPC ITB Awali Onshore Oil Field Revamp (Bahrain Field) Oil Field Development 15,000,000,000 Engineering & Procurement Capital Trade Centre Mixed-Use Development 530,000,000 Feasibility Study Source: www.dmsprojects.net PMI-AGC GULF PROJECT MAGAZINE 59 PMI Conference.pdf 1 9/30/14 12:33 PM 19-21 January 2015 GICC, Gulf Hotel, Kingdom of Bahrain www.pmi-agc.com ACTIVITIES 15th PMI AGC International Conference 2015 AGC Membership & PMP Growth PMI AGC Membership by Country PMI AGC Certified PMP’s by Country MEMBERSHIP AS OF MAY 2014 PMP STATUS AS OF MAY 2014 Bahrain 334 Bahrain 117 Kuwait 319 Kuwait 166 Oman 104 Oman 71 Qatar 571 Qatar 297 Saudi Arabia 1298 Saudi Arabia 629 UAE 472 UAE 192 Other Countries 318 Other Countries 200 Total PMP’s 3,416 Total PMP’s 1,732 Oman 3% Qatar 17% Oman 4% Kuwait 9% Qatar 17% KSA 36% Kuwait 10% KSA 38% Bahrain 10% Others 9% Bahrain 10% UAE 14% Others 12% UAE 11% About Conference The 15th PMI-AGC Conference will be held at the Gulf Hotel in the Kingdom of Bahrain from January 19 – 21, 2015. Based on our last conference success, we are pleased to continue meeting the demand to hold this prestigious international conference in the region. The theme of the conference is “Delivering GCC 2030 Vision through Excellent Project Management”. This event serves as a forum for project management practitioners, engineers, planners, academicians and management to interact, share their experiences, improve their knowledge and showcase their projects and best practices. The conference lasts for three days and is accompanied by an exhibition. A number of parallel tailored pre and post conference tutorial workshops will be held. PMI-AGC GULF PROJECT MAGAZINE 61 ACTIVITIES Sponsorship Form 15th PMI AGC International Conference 2015 19-21 January 2015; Gulf International Convention Centre (GICC), Gulf Hotel, Kingdom of Bahrain Company Name: Contact: Title: Mailing Address: City: Country: Postal Code: Telephone: Fax: Email: Signature: Date: Company Seal: Our organization is pleased to sponsor the 15th PMI-AGC International Conference at the following level: Offiicial Sponsor US$ 100,000 Diamond Sponsor US$ 50,000 Platinum Sponsor US$ 30,000 Gold Sponsor US$ 20,000 Dinner Sponsor US$ 14,000 Lunch Sponsor Conference Bag Sponsor Wire Transfer to Chapter’s Bank Account Account Name : Project Management Institute - Arabian Gulf Chapter Account No. : 99094398 Bank : National Bank of Bahrain (NBB), Manama, Bahrain US$ 10,000 Swift Code : NBOBBHBM US$ 10,000 IBAN : BH37 NBOB 0000 0099 0943 98 Please tick mark for selection. For information on Sponsorship Benefits, please contact PMI-AGC Head Office at: Tel: +965.5692.2392; +966.5068.10102 Fax : +965.2482.1406, Email : [email protected] The amount as mark will be paid as follows: Payable to: ++Project Management Institute++ Authorized by: Please mail check to: Mr. Salim Bhuria Name & Signature 15th International Conference Committee PMI-Arabian Gulf Chapter, P.O. Box 42316, Shuwaikh – 70654, Kuwait Note: Due to big demand in the sponsorship, acceptance will be based on the first come first serve basis Completed registration form should be faxed at +965 2482 1406 Job Title: Project Management Institute-Arabian Gulf Chapter Salim Bhuria, P.O. Box 42316, Shuwaikh – 70654, Kuwait Fax : +965.2482.1406 Mobile : +965.6592.2392; +966.5068.10102 Email : [email protected] PMI-AGC GULF PROJECT MAGAZINE 62 Sponsorship Benefits BENEFITS OFFICIAL SPONSOR US$100,000 Entitles for exhibition stand space with stand fittings at the exhibition hall. 54 Sq. Mtr 30 Sq. Mtr 12 Sq. Mtr 9 Sq. Mtr 6 Sq. Mtr 6 Sq. Mtr 6 Sq. Mtr Free PMI-AGC Delegate Membership 15 12 10 8 6 4 4 Delegates from the sponsoring company may attend the conference with full package free of charge. 15 10 8 6 4 2 2 Publicity materials will be included in the conference pack. Yes Yes Yes Yes No No No Company name and logo will be published in the conference website which shall be connected to the sponsors website. Full Size Full Size Full Size Half Size Half Size Half Size Half Size Advertisement shall be provided in the Exhibition Guide at free of cost. 2 Full Pages 2 Full Pages 1 Full Page 1/2 Full Page 1/4 Full Page 1/4 Full Page 1/4 Full Page Company will be honoured with a Plaque by the Conference Patron at the Opening Ceremony. 1st 2nd 3rd 4th 5th 6th 7th Executive Officers will be treated as VIPs during the event and official lunches and dinner. 10 8 6 4 3 2 1 Company logo will be displayed in the conference hall along with the conference banner. 1.5m x 1.5m 1.25m x 1.25m 1m x 1m 0.75m x 0.75m 0.75m x 0.75m 0.5m x 0.5m 0.5m x 0.5m Rollup will be displayed outside the lobby along with company logo. 2 Separate Rollups 1 Separate Rollup 1 Separate Rollup 1/2 Combine Rollup 1/2 Combine Rollup 1/4 Combine Rollup 1/4 Combine Rollup Company name, logo and profile will be published in the conference proceedings. Yes Yes Yes Yes Yes Yes Yes The Exhibition Booth will Include: • Upgraded shell scheme booth with white panel • One Table / Two Chairs Fascia name of your company with booth number • One Waste Basket One Ashtray • One 13AMP Socket • Three 100W Spotlights • Set-up and Dismantling • Hotel base carpet • Exhibition Catalogue • Exhibition Memorial Gift Item DIAMOND SPONSOR US$50,000 PLATINUM SPONSOR US$30,000 GOLD SPONSOR US$20,000 DINNER SPONSOR US$14,000 LUNCH SPONSOR US$10,000 CONFERENCE BAG SPONSOR US$10,000 www.pmi-agc.com Advancing the project management profession in the Gulf Region MEDIA KIT The Gulf Project Magazine is a professional magazine published quarterly by the Project Management Institute - Arabian Gulf Chapter (PMI-AGC). It is circulated to all PMI-AGC members and about 1000 copies of the magazine are distributed in the Gulf region. PMI-AGC is a non-profit professional organization set up to promote project management in the Gulf region by: fostering professionalism in the management of projects; advancing the quality and reach of project management; stimulating project management application to the benefit of the industries, organizations and the public communities we serve. MAGAZINE CONTENTS GPM Analytics GPM News Feature Story International Feature Member’s Submission Student Projects Technical PMI-AGC People Project Report Activities ADVERTISING We encourage organisations to advertise in this widely-read publication and leverage its widespread distribution at a low cost to gain exposure, increase the reach for their products and services and open new doors of opportunity. Full Size and Cover Page Adverts ADVERTISING RATES Inside full page Inside half page Inside quarter page Inside back cover Back cover 210mm x 297mm (trim) 216mm x 303mm (bleed) US$1,500 US$1,000 US$700 US$2,750 US$4,000 Half Page Advert 200mm x 140mm EDITORIAL AND ADVERTISING CONTACT Email: [email protected] Tel: +973 1740 5590 PMI-AGC GULF PROJECT MAGAZINE 64 Quarter Page Advert 100mm x 140mm Become a Member Online! Applying to become a PMI-AGC Member is easier than ever with our online application process. Follow these simple steps: 1 Log in to http://www.pmi.org/ Membership.aspx. 2 3 Click on Join/Renew. 5 Click on Chapter. Then choose country under your PMI-AGC, listed as Qatar, Saudi Arabia, Kuwait, Oman, Bahrain and Yemen. For example, if you choose Qatar, the contact and chapter charges, US$20 per year, will be listed. 6 7 Choose the PMI Membership US$129 to join. 4 This should take you to the website http://marketplace.pmi.org/ Pages/ProductDetail.aspx?GMProduct =00100147500 8 You will now have both in the cart as separate icons: PMI Joining fees and AGC Joining Fees US$129 and US$20 respectively, US$149 total Click on Join. Click on Add to Cart. 9 Click on Checkout. 10 Please complete the application by creating an account, and follow instructions, then pay by credit card. Please do not hesitate to contact PMI-AGC for any queries that you may have