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Engineering Procedure

SAEP-12 31 August, 2004


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

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