When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP Sr. - - PowerPoint PPT Presentation
Theme: Annual Conference Theme When Mega Goes GIGA Joseph C. Brewer, Jr. Dow Chemical VP Sr. Consultant, Capital Project Delivery Sadara Chief Implementation Officer Year: Date: Location: 49 2017 Sept. 6-9 Boca Raton, FL
Theme: Year: Date: Location: №
When Mega Goes GIGA
Joseph C. Brewer, Jr.
Dow Chemical VP – Sr. Consultant, Capital Project Delivery Sadara – Chief Implementation Officer
Annual Conference Theme
2017 Boca Raton, FL
49
Today’s Objectives:
When Mega Goes GIGA
Latitude 26.94, Longitude 49.48
When Mega Goes GIGA
Sadara - Company Overview
Å Joint Venture: Dow Chemical & Saudi Aramco Å Twenty-Six World Scale Production Units Å Extensive OSBL, Infrastructure & Off-Plot Å Location: Jubail, Eastern Provence, Saudi Arabia Å Initial Memorandum of Understanding – May2007 Å Company Incorporation – Oct2011
When Mega Goes GIGA
Sadara - Project Overview
Å Largest Petrochemical Project Ever Designed & Built at One Time Å 27 Project Teams Å 25 Engineering Offices Worldwide Å 100+ Construction Contractors Å Peak Site Staffing: 60,000 Workers Å 0.033 Total Recordable Incident Rate Å Nominal $20B Investment
When Mega Goes GIGA
Location
When Mega Goes GIGA
Jubail
Location
When Mega Goes GIGA
Jubail
1.3 Miles 1.9 Miles
When Mega Goes GIGA
When Mega Goes GIGA
4 Dimensional Organization
When Mega Goes GIGA
Program Officers
EH&S Process Engr.
PM
Project Director
Construction Quality Process Control Design Engr. Project Engr. Cost Estimating Cost Mgmt. Scheduling Org Effectiveness ECA Implementation Site Integration
PM PM PM
Purchasing Contracting Operations
PM PM PM PM PM PM PM
Project Director Project Director Project Director
HR Support
PM PM PM PM PM PM PM PM
Project Director Project Director
PM PM PM PM PM PM PM PM
Project Director
Contractors & Suppliers
1st Product Team
Timeline
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Feasibility Studies FEED Design Construction Startup JV LOI Initial Gate Review Authorization 1st Product
When Mega Goes GIGA
Sadara Configuration
When Mega Goes GIGA
Products
Isocyanates Polyols Propylene Glycol Ethylene Oxide Propylene Oxide Solution PE Elastomers Glycol Ethers Amines
Intermediates
Raffinate Pygas Pyoil
PlasChem Park
Ethane Naphtha
Market Segments
Sadara
Specialty Films Household Products Polyurethane Foams Adhesives/Sealants Paints & Coatings Laminates Oil & Gas Chemicals Detergents Water Treatment Cables Construction Material Additives Furniture/Insulation Automotive Fluids Auto Components
When Mega Goes GIGA
When Mega Goes GIGA
Title of Presentation
When Mega Goes GIGA
When Mega Goes GIGA
Title of Presentation
When Mega Goes GIGA
When Mega Goes GIGA
Unique Challenges…
When Mega Goes GIGA
When Mega Goes GIGA
Topics
Å The Core Challenge Å Nonlinearities Å New Capabilities Required Å Contracting Potpourri Å Back to Fundamentals
When Mega Goes GIGA
The Core Challenge
When Mega Goes GIGA
The Core Challenge: GIGA is a “Supply” Problem
When Mega Goes GIGA
Equipment Suppliers Bulk Material Suppliers Consumables Suppliers Financing Arrangements Cash Flow Rate of Decision Making Owner Personnel PMC Personnel Design Engineering Skilled Labor Technical Experts Feasibility FEED Design Procure Construct Commission & S/U
Concentrate the Buy – But Don’t Hurt Yourself
Å Program Leveraged Pricing Agreements Can Deliver Significant Savings Å GIGA Volumes Can Bring Very Low Prices Å GIGA Volumes Can Overwhelm Suppliers Å GIGA Must Limit the Volume Committed to Any One Supplier Å GIGA Must Maintain a Higher Expediting/Inspection Presence
When Mega Goes GIGA
Strategic Sourcing
Å What Volumes Will You Buy that the Market Will Struggle to Supply?
– Rotating Equipment? – Analyzers? – Special Metallurgy? – Switchgear? – Etc…
Å Pinch Points Require Special Mitigation Efforts
When Mega Goes GIGA
Nonlinearities
When Mega Goes GIGA
GIGA is Not an Extrapolation of Your Past Experiences
When Mega Goes GIGA
Small Large Mega GIGA
Effort & Expertise Required Project Size
Examples of GIGA Nonlinearities
Å FEED Iterations – Massive Parallel Optimizations Å Interface Management – The Number & Complexity of Interface Points Å Change Management – The Domino Effect Å Risk Management – On Steroids Å Personnel Turnover Å Learning & Leveraging Å Black Swans Redefined – Typically Small Risks are Now Large
When Mega Goes GIGA
New Capabilities Required
When Mega Goes GIGA
New Capabilities Required by GIGA
Å A Four-Dimensional Organization with Proactive Morphing Å Standardization Plus Å Office of Intervention Å Integrated Asset Delivery Å Strategic Float Å Staying Aligned – Organizational Effectiveness Å 1st Product Team Å Proactively Managing ‘Black Swans’
When Mega Goes GIGA
Small Things that Grow Up to be Big
Å Attracting & Retaining Talent Å Career Management Å Financing Support Å Community Relations Å Construction Workforce Marshalling
When Mega Goes GIGA
Contracting Potpourri
When Mega Goes GIGA
There is No Single Contracting Style that Fits GIGA
Å OSBL/Infrastructure is Always Late Getting its Process Data, but Must Startup 1st Å Attracting Sufficient Bids Requires a Mix of Contracting Types Å Newer Technologies are Still On Their Learning Curves – Scope Changes Likely Å It’s Best Not to Let the Market Split Up Your Packages – Scale Them to the Market Å The Result: All Types of Contracts for which You Need to Be Prepared to Manage
When Mega Goes GIGA
Back to Fundamentals
When Mega Goes GIGA
GIGA is Intolerant of Forgetting to Do the Basics Well
Å Full Staffing of Project Teams with Experienced Personnel Å Complete & Robust FEL Work & FEED Packages Å Full Implementation of Value-Improving Practices Å Benchmarking Å Gate Reviews Å Integrated, Backward Pass, Resource Loaded Scheduling Å Progress & Critical Path Monitoring & Reporting Å Robust Change Management Å Vigorous Risk Management Å Proactive Contract Management
When Mega Goes GIGA
When Mega Goes GIGA
GIGA is an Unforgettable Roller-Coaster Ride!
When Mega Goes GIGA
But Allows You to Achieve Things No One Else Has Achieved.
Theme: Year: Date: Location: №
When Mega Goes GIGA
Annual Conference Theme
2017 Boca Raton, FL
49