Saep 367 PDF

Engineering Procedure
SAEP-367 16 September 2015

Value Improving Practices Requirements
Document Responsibility: Project Management Office Department
Note: This version of SAEP-367 is applicable only to projects using the new Capital
Management System (CMS). All other projects will use the previous version of this
procedure dated 24 April 2011.
Saudi Aramco DeskTop Standards

Table of Contents
1 Scope…............................................................. 2
2 Conflicts and Deviations.................................... 2
3 Applicable Documents....................................... 3
4 Important Terms…………………………………. 5
5 Definitions of Value Improvement Practices.…. 6
6 Requirements/Instructions................................ 7
6.1 Value Engineering………………......….... 8
6.2 Best Practices……………………........... 12
6.3 Project Risk Management...................... 20
6.4 Interface Management………………….. 25
7 Capital Efficiency Value Improving Practices.. 28
8 Responsibilities............................................... 30
Appendix A – Optimum Implementation

Timing for VIPs…............................ 33
Appendix B – Project Portfolio Characterization.… 34
Previous Issue: 24 April 2011 Next Planned Update: 16 September 2018

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Primary contact: Doiron, Shannon Earl (doironse) on +966-13-8809161
Copyright©Saudi Aramco 2015. All rights reserved.

Document Responsibility: Project Management Office Department SAEP-367
Issue Date: 16 September 2015
Next Planned Update: 16 September 2018 Value Improving Practices Requirements
1 Scope
This procedure outlines the requirements of Value Improving Practices (VIPs) during
project planning and execution phases. The procedure is not intended to give
instructions on the engineering effort, but covers requirements for VIPs that are
applicable during Business Case, Study, DBSP, Project Proposal, Detailed Engineering,
and Construction phases. This procedure is applicable only to projects using the new
Capital Management System (CMS). VIP requirements include:
 Value Engineering (VE) including Process Simplification and Design-to-Capacity
during DBSP and Project Proposal.
 Best Practices (BP) regarding project cost, schedule and quality improving
techniques, during Business Case, Study, DBSP, Project Proposal, Detailed Design,
and Construction phases.
 Project Risk Management (PRM) during Business Case, Study, DBSP, Project
Proposal, Detailed Design, and Construction phases.
 Interface Management (IM) during DBSP, Project Proposal, Detailed Design and
Construction phases.
 Capital Efficiency VIPs resulting from the rollout of the Capital Management
System.
This procedure is not applicable to the value engineering studies performed on any of
the Mandatory Saudi Aramco Engineering Requirements documents. Saudi Aramco
Best Practice document SABP-A-040 Guidelines for Conducting Value Engineering on
Mandatory Saudi Aramco Engineering Requirements should be used for that purpose.
Commentary Notes:
The objective of this procedure is to consolidate all the value improving practice
requirements into one procedure. VIP requirements are also specified in other phase-
specific procedures such as SAEP-1350 for the DBSP phase. The requirements
specified herein supersede the provisions in the other procedures referenced in this
document.
2 Conflicts and Deviations
2.1 Any conflicts between this procedure and other applicable Saudi Aramco
Engineering Procedures (SAEPs), Saudi Aramco Engineering Standards
(SAESs), Saudi Aramco Materials System Specifications (SAMSSs), Saudi
Aramco Standard Drawings (SASDs) or industry standards, codes, and forms
shall be resolved in writing by the Project Execution Optimization Division
(PEOD) General Supervisor, Project Management Office Department (PMOD)
of Saudi Aramco, Dhahran.
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2.2 Direct all requests to deviate from this procedure following internal Company
procedure SAEP-302 and forward such requests to the Manager, Project
Management Office Department of Saudi Aramco, Dhahran.
3 Applicable Documents
The latest edition of the applicable reference documents shall be applied:
3.1 Saudi Aramco References
Saudi Aramco Engineering Procedures

SAEP-12 Project Execution Plan
SAEP-13 Project Environmental Impact Assessments
SAEP-14 Project Proposal
SAEP-40 Value Assurance Process
SAEP-42 Capital Projects Efficiency Systems by Design
SAEP-140 Project Training Impact Assessment
SAEP-302 Instructions for Obtaining a Waiver of a Mandatory
Saudi Aramco Engineering Requirement
SAEP-329 Project Close-Out Report
SAEP-360 Project Planning Guidelines
SAEP-1350 Design Basis Scoping Paper (DBSP) Preparation and
Revision Procedure
SAEP-1661 Waste Minimization Assessment Procedure
Saudi Aramco Engineering Standards

SAES-A-030 Reliability Availability and Maintainability (RAM)
Study Execution
SAES-A-202 Saudi Aramco Engineering Drawing Preparation
SAES-A-502 Combined Heat and Power Systems Optimization
Design
SAES-A-503 Saudi Aramco Standard for Energy Efficiency in
Residential Buildings
SAES-A-504 Saudi Aramco Standard for Energy Efficiency in
Non-Residential Buildings
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Saudi Aramco Best Practices

SABP-A-005 Energy Assessment Methodology for Energy
Efficiency Optimization
SABP-A-009 Pinch Technology for Energy Efficiency Optimization
SABP-A-012 New Projects Energy Efficiency Optimization Review
Methodology
SABP-A-030 Energy Assessment for Efficiency Optimization in
GOSP
SABP-A-040 Guidelines for Conducting Value Engineering on
Mandatory Saudi Aramco Engineering
Requirements
General Instruction
GI-0002.710 Mechanical Completion and Performance Acceptance
of Facilities
Saudi Aramco Cost & Scheduling Manual
Construction Agency Safety Management System
Saudi Aramco Project Risk Management Guide
Value Engineering Guide
Best Practices Guide
Capital Management System Efficiency Enablers Documentation
Front End Loading (FEL) Manual
Integrated Project Team (IPT) Manual
Project Sponsor Manual
Target Setting Manual
3.2 Industry Codes and Standards
Construction Industry Institute (CII) Publications

Planning for Startup Guide - IR 121-2
Project Definition Rating Index
Industrial Projects - IR 113-2
Infrastructure Projects - IR 268-2
Building Projects - IR 155-2
Lessons Learned Implementation - IR 230-2
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4 Important Terms
Front End Loading (FEL): A process that organizes the project life cycle into phases,
each with defined activities, deliverables and specific objectives. FEL is applicable for
all projects that apply the Capital Management System (CMS). The FEL boundaries are
segregated as FEL0, FEL1, FEL2 and FEL3 where:
FEL 0 =Initiation
FEL 1 = Business Case
FEL 2 = Study & DBSP
FEL 3 = Project Proposal
Note: For more details, refer to Front End Loading Manual.
Project Types A, B, C & C1: Assigned to the projects by FPD based on size
(CAPEX) and complexity. For reference, see Appendix B.
Construction Agency: The organization assigned to execute the project.
Project Management: The Saudi Aramco Project Management administrative area

that is the default Construction Agency for Types A, B and C projects.
Proponent: The Saudi Aramco organization that owns, operates, and maintains the
completed facility. The Proponent is responsible for signing the Mechanical
Completion Certificate as owner of the facility.
Integrated Project Team (IPT): A team composed of appointed members from

different organizations who work in an integrated manner and have clear roles and
accountabilities toward project planning and execution.
Saudi Aramco Project Management Team (SAPMT): The Construction Agency

team assigned to the project during project planning and execution.
The Capital Management System (CMS): The general framework adopted by Saudi
Aramco for managing and controlling activities on Capital Projects. The CMS covers
the entire development process from business planning, through project definition and
execution to operations.
Team Development Index (TDI): Measures elements that enhance team performance
which improves project definition, team alignment and performance. The index is
generated during FEL2 (DBSP), FEL3 (PP) and Construction completion. The TDI
addresses the following categories:
a. Project Team Development and Integration
b. Project Maturity Processes
c. Project Complexity Attributes and Management Strategies
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Front Loading Indexes: Measure the completeness and quality of scope definition
near the end of FEL2 (DBSP) and FEL3 (PP).
Abbreviations
SME Subject Matter Expert
VIP Value Improvement Practices
FEL Front End Loading
DBSP Design Basis Scoping Paper
PP Project Proposal
DD Detailed Design
IPT Integrated Project Team
SAPMT Saudi Aramco Project Management Team
FPD Facilities Planning Department
IPA Independent Project Analysis
PMOD Project Management Office Department
CPED Capital Program Efficiency Department
PEDD Project Engineering Development Division
PSP Preliminary Scoping Paper
5 Definition of Value Improvement Practices
Value Improving Practices (VIPs) are out-of-the-ordinary practices used to improve

project performance, and they are primarily used during the front-end loading (FEL) of
a project. Within Saudi Aramco, the term Value Improving Practices encompasses
Value Engineering, a group of other value management techniques called Best
Practices, Project Risk Management and Interface Management.
 Value Engineering: A function-oriented multidisciplinary team approach for
optimizing project execution and eliminating unnecessary costs without sacrificing
total project performance, quality, and/or reliability.
 Best Practices: Strategies, techniques, methods or procedures that have proven to
produce results of the highest value to an organization. Within Project
Management, “value” is determined by the ability to complete projects at or below
targets for cost and schedule while maintaining quality and safety goals.
Best Practices techniques include Project Planning & Team Alignment (formerly
known as Project Execution Planning Workshop); Project Definition Rating Index;
Constructability; Schedule Optimization; Scope Control & Change Management;
Planning for Start-up and Lessons Learned.
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 Project Risk Management (PRM): Seeks to anticipate and address

uncertainties and events that have a positive or negative affect on project
objectives. Project Risk Management is the process concerned with conducting
risk management planning, identification, analysis, response, and monitoring
and control of project risks.
 Interface Management (IM): Seeks to proactively manage all communications
with and between contractors regarding the interface points where contract
packages meet to integrate the divisions of the overall facility being constructed.
IM successfully aligns stakeholders, EPC, service companies and commissioning
parties to deliver large scale projects on time and within budget.
It should be noted that the Capital Management System’s full deliverables list
(see FEL Manual) includes VIPs that encompass other practices as defined below
in the Capital Efficiency VIPs paragraph of this section.
 Capital Efficiency Requirements: Practices benchmarked by IPA
and considered to improve life-cycle cost, facility life, and/or operational
performance of capital projects. Through planning and engineering
processes, these practices target to achieve optimum balance between cost
and performance, improving reliability or simplifying processes, eliminating
over-design, and maximizing operational performance.
These practices are: Customizing Standards, Energy Optimization, Waste
Minimization, Design-to-Capacity, Process Simplification, Technology
Selection, Predictive Maintenance, Process Reliability Modeling, and Design for
Maintainability.
Applicable Value Improving Practices Plan: A project-specific plan that indicates

the required practices for the different phases of the project or program.
Applicable Value Improving Practices Status Report: A report that notes the
implementation status of the required VIPS for the individual project to be submitted to
Value Assurance during Gate Reviews. As an attachment, the status report also
includes the VIPs reports issued by the facilitators for individual practices.
Value Practices Management System (VPMS): A web-based automated tool that

enables PMOD/PEOD to propose, schedule, track and evaluate the implementation of
Value Improving Practices on capital projects.
6 Requirements/Instructions
Using the automated VPMS tool at the beginning of each calendar year or at the
initiation of each project, PMOD/PEOD assists project teams to identify the Value
Improving Practices that provide the most benefit for the individual projects.
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In general, the proposed practices follow Appendix A as a guide. The Applicable VIPs
Plan is then sent to the Project Leader/Manager of the IPT/SAPMT for review and
concurrence. The concurred practices are then reflected in the Applicable Value
Improving Practices Plan and the Project Execution Plan. Since best practices have the
greatest impact on a project in the very early stages, it is recommended that their use be
planned early and repeated, as applicable. The Project Leader/Manager is responsible
for the implementation of the recommended practices for their projects. For more
details on responsibility, please refer to Section 8 of this document.
In case there is a need for revising or updating the approved VIP plan, the IPT leader
shall secure PMOD/PEOD’s approval for the revised VIP plan and a copy of the revised
plan shall be submitted to CPEP/Value Assurance for information. The revised plan
shall then be reflected in the Applicable Value Improving Practices Plan and the Project
Execution Plan.
Value Improving Practice sessions shall only be facilitated by PMOD facilitators,

approved Value Practice consultants, approved Out-of-Kingdom engineering
contractors, local engineering contractor personnel who have been approved by PMOD
or any other resource trained and approved by PMOD. With the help of the facilitator,
individual VIP deliverables shall be submitted to PMOD and CPED for review and
value assurance, respectively.
The “Optimum Implementation Timing” and “Summary Criteria” of the recommended

VIPs are provided in Appendix A. For each individual project, the Project
Leader/Manager and the IPT in conjunction with PMOD/PEOD will determine the
specific list of VIPs for their project. In the event the project criteria/value changes
during its lifecycle, the VIP requirements shall be re-evaluated as needed with
consultation with PMOD. At the completion of each VIP workshop, the IPT is required
to submit a report/deliverables to PMOD/PEOD for review and Applicable VIPs
Implementation Status Reports for the different practices to CPED for Value Assurance
during the Gate Reviews.
6.1 Value Engineering
Value Engineering (VE) is a function–oriented, multidisciplinary team approach

for optimizing project execution and eliminating unnecessary costs without
sacrificing total project performance, quality, and/or reliability. The rigorous
examination of what is needed to meet the business objectives of a project and the
elimination of non-value adding investment is directed towards function analysis.
The practice aims to systematically differentiate “wants” from “needs” and
removes the “wants.” It tests for non-income-producing investments, including:
 Redundancy
 Over-design
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 Manufacturing add-ons
 Upgraded materials of construction
 Customized design vs. supplier standards
The Value Engineering exercise typically results in savings of 5-10% of life-

cycle cost and/or Total Installed Cost (TIC). VE leverages the growing
accumulation of more detailed project knowledge to test the value of earlier,
more generalized scope assumptions. It also tests the added value of different
stakeholder requirements that have influenced the evolution of the scope.
The Value Engineering methodology is outlined in the VE Guide.
VE studies shall only be facilitated by a Certified Value Specialist (CVS),

PMOD SMEs or engineering contractor personnel who have been approved by
PMOD/PEOD.
Requests for VE study guidance and information on consultants and local

engineering contractors approved to facilitate VE sessions should be directed to
PMOD/PEOD.
6.1.1 VE Study Criteria/Implementation Criteria
For C1-type projects, VE should be conducted once at 30% PP stage.

For A, B, & C-type projects, VE will be conducted both at 60% DBSP
and 30% PP. For A & B-type projects, additional VE is required to
optimize project cost on an as-needed basis during 30% of DD.
(Reference Appendix A).
Unless a prior waiver is obtained from PMOD, the Construction Agency

shall initiate a formal VE study during the Project Proposal development
stage when the BI value exceeds $30 million.
If deemed necessary, the Construction Agency may initiate a formal VE

study during the 20% Detailed Design stage when the BI value exceeds
$200 million.
6.1.2 DBSP Phase
During the DBSP phase, Facilities Planning Department (FPD) initiates a

Value Engineering study of the project scope at 60% of DBSP or as
described in the initial draft of the DBSP.
6.1.3 Project Proposal Phase
During the Project Proposal phase, the Construction Agency initiates the
VE study which should be completed during the early phase of the
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Project Proposal but not later than the 30% completion milestone date.
For scheduling purposes, the VE studies shall be coordinated
with the Project Management Office Department (PMOD/PEOD).
The requirements for conducting VE studies shall be identified in the
Project Proposal contractor’s scope of work and the Value Improving
Practices Implementation Plan and Project Execution Plan.
6.1.4 Detailed Design Phase
During the DD phase, the Construction Agency may initiate a VE study

on an as-needed basis no later than 20% of the Detailed Design phase.
6.1.5 Additional VE Requirements
VE shall be conducted with special emphasis on the following areas:

 Plot Plan Analysis for expansion and grass root process plant
projects to ensure that facilities are designed in the most efficient and
cost-effective manner.
 Process Simplification (PS) is to be addressed during the DBSP-
phase VE.
PS is a rigorous, structured, and formally facilitated process to search
for opportunities to eliminate or combine chemical or physical
process steps while satisfying needed functionality at the lowest
investment cost, and often operating cost as well.
 Design-To-Capacity (DTC) is to be addressed both during the
DBSP and PP VE.
DTC is a structured evaluation to determine the true required
maximum capacity of each major piece of equipment, piping, valves,
and instrumentation, relative to the desired overall facility capacity
with the objective of minimizing uneconomic excess capacity. Often
equipment is designed with a safety factor to allow for additional
catch-up capacity of some production increases. Design to Capacity
optimizes the use of capital to meet nameplate capacity while taking
into account plant flexibility and expandability scenario use.
6.1.6 VE Proposal Implementation & Reporting Requirements
The effectiveness of a VE study depends on the successful

implementation of accepted proposals and on the prompt resolution of
pending proposals. During development of the Design Basis Scoping
Paper, the Facilities Planning Department modifies the initial project
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scope to reflect the Value Engineering study recommendations which

FPD agrees would strengthen the business case. During the DBSP phase,
the VE proposals that are accepted by FPD are to be reviewed by the
proponent organization and the IPT, before being incorporated into the
DBSP scope of work. The status and resolution of all accepted and
justification for the not accepted VE proposals shall be documented in
the Value Engineering section of the DBSP and the VIP Report for
Value Engineering. Moreover, a resolution should be reached in regards
to the “Accepted for Further Study” concepts. At the end of the DBSP,
all items should be either accepted or not accepted.
During the Project Proposal phase, the VE proposals that are accepted by
the proponent organization and the Construction Agency are to be
reviewed by FPD, Process & Control Systems Department (P&CSD) and
Consulting Services Department (CSD) if related to standards’
requirements, before being incorporated into the Project Proposal scope
of work. The status and resolution of all accepted and justification for
the not accepted VE proposals shall be documented in the Value
Engineering section of the Project Proposal and the VIPs Report for
Value Engineering. Moreover, a resolution should be reached in regards
to the “Accepted for Further Study” concepts. At the end of the Project
Proposal, all items should be either accepted or not accepted.
6.1.7 VE Deliverables
With the assistance of the VE SME, the IPT should submit the following
deliverables after each VE study event as outlined in Appendix A.
 Value Engineering Study Report (Final)
The final report shall include the following:
a) List of attendees
b) Implementation meeting information which includes the names
of decision makers who attended the implementation meeting
c) Acceptance status (Accepted “A” or Not Accepted “NA”) of all VE
proposals and recommendation. During the final report, Accepted
for Further Study (AFS) status shall have been resolved and shall be
converted to “A” or “NA”. Justification for all non-accepted items
proposal/recommendation shall be stated in the report.
 Process Simplification Report (when required). The report shall
include the following:
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of decision makers who attended the implementation meeting.
c) Acceptance status (Accepted “A” or Not Accepted “NA”) of all PS
proposals and recommendation. During the final report, Accepted
for Further Study status “AFS” shall have been resolved and shall
be converted to “A” or “NA”. Justification for all non-accepted
items proposal/recommendation shall be stated in the report.
 Design-to-Capacity Report (when required). The report shall include
the following:
of decision makers who attended the implementation meeting.
c) A list of all major equipment including the design capacity as
specified by the project team along with the margin of design
utilized. Justification will be required for design capacities that
exceeds the required design margins.
The content of these deliverables should be relevant and address the

objectives of the respective gates. Gate objectives are outlined in the
FEL Manual of the Capital Management System.
A copy of the final VE report shall be distributed to PMOD/PEOD no

later than four weeks from the completion of the VE session in the
DBSP, the PP phase, and in the DD phases.
6.2 Best Practices
The use of industry best practices can significantly improve project performance
in terms of cost, schedule, and operability. However, the effectiveness of these
techniques depends on several factors, including the nature of the project, the
project phase at which the practices are applied, and the expertise of the
individuals responsible for implementing them. The elements of the best practices
are outlined in the Best Practices Guide. This includes the following practices:
6.2.1 Lessons Learned
Lessons Learned is defined as knowledge gained from experience,

successful or otherwise, for the purpose of improving future
performance. The objective of Project Management’s Lessons Learned
program is to facilitate the capture, analysis, and implementation of
lessons learned to help achieve improved project performance.
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The Project Leader shall be responsible to carry out the below listed
workshops as part of the Lessons Learned requirements in this procedure.
6.2.1.1 Lessons Learned Implementation (LLI)
Lessons Learned Implementation is a structured and systematic

approach to the application of lessons learned from previous
projects. It entails a systematic search of Project
Management’s Lessons Learned Knowledge Base and the
Pitfall Prevention Tool website and other reliable sources to
identify lessons applicable to a specific project. This is
followed by the development of mitigation strategies and
action plans, and monitoring their implementation with a view
to minimizing repeat problems and capitalizing on other
project’s successes.
Implementation Criteria
As outlined in Appendix A, SAPMT shall initiate and hold

formal facilitated LLI workshops at the beginning (0-10%) of
ALL project phases (Business Case, Study, DBSP, Project
Proposal Detailed Design and Construction).
In these workshops, projects will select lessons/pitfalls

applicable for that phase or other upcoming phases, where they
can develop action plans to mitigate during that time of the
project phase. Participants in these workshops should be all
individuals from the IPT who are involved in the planning and
execution of the project, including but not limited to, Facilities
Planning Department, Proponents, Inspection Department, Loss
Prevention Department, and contractor’s key representatives.
LLI Deliverables
With the help of an LLI facilitator, the IPT should submit the
LLI report after each LLI event as outlined in Appendix A.
The report, which includes the lessons applicable to the project,
shall include:
a) The title for each applicable lesson
b) Champion for the lesson
c) Timeline for action
The content of these deliverables should be relevant and

address the objectives of the respective gates. Gate objectives
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are outlined in the FEL Manual of the Capital Management

System.
6.2.1.2 Lessons Learned Collection (LLC)
Lessons Learned Collection is a structured and systematic

approach for individuals from the IPT to collectively document
their unique experiences and insights from their involvement in
each phase of project development cycle.
As outlined in Appendix A, Saudi Aramco projects shall hold

formal facilitated LLC workshops at 90%-100% completion of
each project phase (Business Case, DBSP, Project Proposal,
Detail Design, Procurement, and Construction). The LLC
session conducted at the end of Construction includes the
generation of the TDI for the project. Participants in these
workshops should be individuals from the IPT who are
involved in the planning and execution of the project, including
but not limited to Proponents, Inspection Department, Loss
Prevention Department, and contractors and vendors key
representatives. It is also strongly recommended that project
team members regularly submit lessons to Project
Management’s Lessons Learned Knowledge Base at any time
during project lifecycle.
LLC Deliverables
With the help of an LLC facilitator, the IPT should submit the
LLC report which includes the lessons learned in Saudi
Aramco’s standard format. This shall include:
a) The title for each applicable lesson
b) Background
c) Root causes
The content of these deliverables should be relevant and address

the objectives of the respective gates. Gate objectives are
outlined in the FEL Manual of the Capital Management System.
6.2.2 Project Planning & Team Alignment (PP&TA)
Project Planning & Team Alignment (formerly Project Execution

Planning Workshop) is a facilitated workshop. Under this practice,
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C1 type projects are conducted once on or at 10% Project Proposal.

For A, B, and C projects, PP&TA workshops are conducted twice:
once at or before 10% DBSP phase and again at or before 10% PP phase
(reference Appendix A). The intent of the workshop is to promote
ownership, commitment, team building, stakeholder management,
planning and alignment. On a typical Budget Item (BI), key
stakeholders are the Proponent, FPD, IPT, Loss Prevention, Inspection
Department and other involved parties as noted on the DBSP approval
sheet. The Value Practice Management System (VPMS) awareness and
Stakeholders Management Plan is embedded within this practice.
In practice, PP&TA sessions should be held as soon as the FEL2 or

FEL3 team is in place but no later than 10% DBSP or PP phase as
needed. For applicability and implementation criteria of this best
practice, (reference Appendix A).
All IPT team leads, and particularly Proponent engagement, are a must
to successfully implement this practice. The workshops will be
coordinated by the IPT leader (either FPD or Construction Agency)
depending on FEL2 and FEL3 respectively and will be facilitated by
PMOD or a PMOD-approved consultant.
The workshop report shall include the following contents:
For A, B, and C-type projects, the following items will be covered

during FEL2 and FEL3 as applicable. During FEL2 the focus will be
on awareness and during FEL3 the focus will be to progress action
items from FEL2 and on reviewing existing documents to finalize
them. However, for C1-type projects, ALL items must be covered
during FEL3.
1. Awareness of Value Practice Management System and required
VIPs, timeline and deliverables.
2. Conduct planning and alignment survey to facilitate Team
Development Index (TDI). The TDI will be conducted at FEL2,
FEL3 and at project closing (in conjunction with LLC), where
data will be compared to measure improvement. TDI results are
used to identify planning and team building gaps and recommend
actions as required.
3. Align on project goals, objectives and drivers. Capture general
planning, execution and alignment concerns, risks and
opportunities from IPT members.
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4. Review draft Stakeholder’s Management Plan, reach consensus /

alignment on initial plan, consider alternate plans and identify
gaps to help revise document as needed.
5. Review draft Project Execution Plan (PEP), reach consensus /
alignment on initial plan, consider alternate plans and identify
critical issues/gaps to help revise document as needed
6. Identify DBSP critical planning issues that need to be embedded
into the PEP to mitigate impact on scope, schedule and cost.
For an effective session, the IPT lead is to share the below documents
with the facilitator and team as applicable one week prior to the
workshop:
1. Draft Stakeholder Management Plan
2. Draft Project Execution Plan
3. Project scope document (DBSP or PSP) and any addendums
4. Existing Project Overview presentations as available
5. Kick-off Meeting minutes
The overall objective of this best practice is to customize and help

finalize project execution planning per DBSP requirements and feedback
from IPT members and to generate a TDI for DBSP, PP and
Construction completion in conjunction with Lessons Learned
Collection. Simultaneously, the alignment level is improved by
facilitating understanding and agreement on execution strategy, which in
turn minimizes any potential future conflicts. For follow-up, PMOD
recommends to hold a planning and alignment review meeting at the
onset of the detailed design phase facilitated by the IPT lead to progress
and finalize the status of workshop report items as needed. At this stage,
the IPT lead may also choose to hold a formal team building session
facilitated by a third-party consultant as needed.
6.2.3 Constructability
Constructability is the integration of construction expertise throughout

the design process to facilitate the reduction of construction cycle time
and cost. It comprises an analysis of the design, usually performed by
experienced construction engineers, to reduce costs or save time.
Constructability is usually a program in which competent construction
professionals are involved as part of the project design team, working
with the engineers from conceptual stage of the project and continuing
through completion of design. Effective and timely integration of
construction knowledge into the conceptual planning, design,
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construction and field operations of a project has proven substantial

benefits. Constructability efforts require a proactive approach; therefore,
the DBSP, Project Proposal, and Detailed Design phases of a project are
where Constructability efforts are most and yield the greatest results.
Constructability Deliverables
With the assistance of the Constructability SME, the IPT should submit a
constructability report after each Constructability study event as outlined
below.
The Constructability report shall include the following:

b) Constructability Review Checklist (general and specific) items
c) Constructability log which reflects the status update of previous
phase’s Constructability

FEL Manuals of the Capital Management System.
6.2.4 Planning for Startup (PFSU)
Startup is defined as the transitional phase between facility construction

completion and on-stream, including all activities that bridge these two
milestones (i.e., Mechanical Completion, Commissioning through
Performance Acceptance). Overall project success is strongly related to
startup success, which depends heavily on the degree and thoroughness
of early startup planning. Saudi Aramco GI-0002.710, Mechanical
Completion and Performance Acceptance of Facilities provides the
framework for startup planning.
The startup team, led by the Proponent, is responsible for getting the
plant safely and efficiently commissioned and started. Successful
commercial operations require successful startup and successful startup
requires effective planning for startup. The key to a successful startup is
to have an Operational Readiness and Startup Plan that defines the roles
and responsibilities of the startup team explicitly and clearly identify the
manpower need with a high level of accuracy. The preparation of the
Startup Plan, which includes a Responsibility Assignment Matrix
“Responsibility, Accountability, Consult, Inform (RACI)”, is normally
initiated late in the Design Basis Scoping Paper phase and is elaborated
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during the early stages of Project Proposal and further refined throughout
the subsequent project phases.
The startup plan describes in detail the sequence of startup, integration

with shutdowns, turnover sequence, plans for commissioning procedures,
training program, plans for maintenance procedures, raw materials and
supplies needed for startup, plans for the preparation of operating
manuals, documentation, required spare parts and startup team structure
including the responsibilities and accountabilities for the Proponent,
constructor, vendor representative, Project Engineer, operations and
maintenance personnel.
The development of the Startup Plan (as an integral part of the Operational
Readiness Plan) is the responsibility of the Operations representative with
input from the Project Leader/ Manager, design team, Safety and
Industrial Security (S&IS), Inspection, etc. It also relies upon information
from the Pre-Commissioning & Mechanical Completion plan.
Note: The Operational Readiness Plan (ORP) is a document that defines how
the project will transition into an operating facility and will describe what
“operational-type” steps must be taken along the project planning and
execution path to have a flawless startup and initial operations.
The ORP also highlights and describes activities and resources aiming
to ensure the optimization of Operations and Maintenance activities
over the facility lifetime (starting after handover).
The Project Leader/Manager is to provide oversight to ensure that startup

planning is performed as an activity that is performed and tracked in (for
example) Project Execution Plan (PEP), project schedule, intermittent
reports, etc.
Planning for Startup (PFSU) is a series of activities to be performed at

different times during project development cycle. As outlined in
Appendix A, this effort is initiated at 60% of DBSP. PFSU awareness
sessions for the project team shall be conducted at 60% DBSP and again
at 30% of Project Proposal. The PFSU tools are used by all project
stakeholders, PMT, proponent, contractors, etc., to help facilitate a
successful facility start-up and stable long-term operation.
The Planning for Startup Model is currently a web-based automated tool.

The model recommends that about 15% of startup planning effort should
be completed by the end of DBSP and about 50% of the startup planning
effort should be completed by the end of the Project Proposal phase.
Page 18 of 34
By the end of Detailed Design the startup planning effort should be 80%
complete.
The startup plan addresses the startup objective, roles and responsibilities
of key persons and organizations, the startup philosophy, startup scope
and major systems, startup risk, and any procurement related to startup
as well as the timing of startup planning and execution activities.
PFSU Deliverables
With the assistance of the PFSU SME, the IPT shall submit a Planning
for Startup report after each PFSU workshop event as outlined.
The PFSU report shall include the following:

a) List of attendees for all gates
b) Summary of the ORP for all gates
c) Commitment Letter for FEL 2 only
d) Startup Execution Plan – FEL 3 through Construction

FEL manuals of the Capital Management System.
6.2.5 Project Definition Rating Index (PDRI)
PDRI is a powerful and simple tool that helps the project team measure
project scope definition for completeness. This practice/workshop shall
be conducted at 90% DBSP, and 60% and 90% of Project Proposal.
It involves the IPT, Proponent, contractor, and other parties as needed to
measure Project Proposal completeness and clarity. PDRI consists of
approximately 70 elements that identify and very precisely describe each
critical element in a preliminary engineering scope definition package.
PDRI Deliverable
With the assistance of the PDRI SME, the IPT should submit the PDRI
report after the PDRI session during the Project Proposal event outlined
in Appendix A.
Using the PDRI tool and the outcome of the two sessions (90% DBSP
and 90% PP), the SME will generate the Front Loading Indexes for
FEL2 and FEL3.
Page 19 of 34
6.2.6 Scope Control & Change Management (SC&CM)
Scope Control (SC) is a preventive, proactive process that starts with a

detailed project scope and ensures discipline in scope changes during
execution. Change Management (CM) involves establishing and
communicating to all project stakeholders a system for recognizing,
evaluating, and implementing changes during all phases of the project.
SC+CM is a facilitated session and shall be conducted at 60% of the
Project Proposal. SC+CM is typically facilitated along with the PDRI
session, but can be done independently as well.
6.2.7 Schedule Optimization (SO)
Schedule Optimization is the utilization of schedule review techniques to

optimize the schedule for project completion. The objective is to look
for the best possible (most realistic) performance period for the project
based upon Saudi Aramco historical experience and the capabilities of
the service contractors and material suppliers. The schedule being
prepared is considered a Project Summary Schedule (Level III) and
consists of 50 – 200 activities. SO utilizes “Schedule Reduction” and
“Schedule Compression” techniques to optimize the project schedule.
This is a full life-cycle schedule that encompasses the Project Proposal,

Detailed Design, Procurement, Construction and Startup phases of the
project. This schedule is the basis for the milestone dates used in follow-
on phases or contracts. It is also used to assess the completeness of the
schedule submitted by bidders for the various types of contracts used
during the project.
Schedule Optimization shall be conducted on an as needed basis at 60%

of Project Proposal.
SO Deliverable
With the assistance of the SO SME, the IPT should implement the
practice and submit the SO report after the session is conducted.
CPED and PMOD will review the optimized schedule but approval will
lie with the IPT lead.
6.3 Project Risk Management
6.3.1 Risk Management Process
Project Risk Management (PRM) is based on a structured process that
Page 20 of 34
augments the project team’s approach for decision making and dealing
with uncertainties. It is conducted continuously over the life of the
project. PRM is used to proactively minimize uncertainty in achieving
project objectives, maximize project efficiency and facilitates the
achievement of corporate objectives. The process is embedded in the
stage-gate approval process prior to Expenditure Request Approval
(ERA) and also in standard project practices after ERA. The process is
defined by the combination of facilitated risk management workshops or
desktop reviews and a continuous process of monitoring and control.
The recommended optimum timing for the risk workshops or desktop

reviews are outlined in Appendix A. It should be noted that the optimum
timing is not a fixed date but a timeframe that spans several weeks.
At each risk workshop or desktop review, a structured PRM process is

used to evaluate and plan for the risk. This process includes the
following main steps:
a. Plan the PRM approach
b. Identify risks
c. Assess risk
d. Develop response plans
e. Monitor and control the risk
Risk Planning, Risk Identification, Risk Assessment and Risk Response

development are done through risk workshops and interviews or desktop
reviews. The risk workshops are facilitated by a risk management
specialist while the desktop reviews are led by either a risk management
specialist or Project Risk Managers trained and approved by PMOD.
The IPT is to evaluate the merits of utilizing qualitative vs. quantitative
assessment techniques as needed.
PRM uses a Risk Register as the core of its process. The Risk Register
captures all information related to project risks and provides the
justification for, and definition of, all activities required to monitor and
manage the risk.
The PRM process provides an opportunity for efficient use of resources

and the determination of and reduction in the use of contingency and
management reserves. The process is described in detail in the Saudi
Aramco Project Risk Management Guide.
Page 21 of 34
6.3.2 PRM Implementation
While the PRM process is applicable to capital projects as outlined

in Appendices A and B, the number of activities within the process,
and the depth of the activities performed, depends on the size,
complexity, uniqueness and level of importance of the project.
The scope and level of detail of activities required to implement PRM for
a specific project will be identified upon completion of the PRM
questionnaire. The questionnaire is to be completed by the IPT and is to
be evaluated by PMOD. The scope of PRM will be jointly decided
between the IPT and PMOD. Smaller, less complex projects such as
Type C1 will benefit from desktop reviews while larger, more complex
projects such as Types A, B and C will benefit from facilitated group
workshops.
If a project is part of a program, it is required that there is a program

approach to risk management to address the risk at the program level.
The interdependence between projects is evaluated in the program-level
study. The results of such study should be on the program risk register
and also reflected in the individual project risk registers. The program
risks will be managed and reported in the same way as that of projects.
The table below outlines the different PRM requirements for the projects
of different types.
Project Type Recommended PRM Type

A&B Special
C Standard
C1 Desktop Review
Special PRM studies are requirements for type A and B projects and
include comprehensive and mandatory implementation of a number of
industry PRM practices. The requirements are based on PRM events
(Appendix A) that are applicable to Types A and B projects and include:
 Risk identification for project options in FEL2
 Probabilistic cost and schedule risk analyses to define project
contingencies and sensitivities (if requested by the IPT).
All projects require Standard PRM studies. The requirements are based
on PRM events (workshops) (Appendix A) and a comprehensive
development of project risk registers including:
Page 22 of 34
 Comprehensive identification and full assessment of project risks for

all categories of a project risk breakdown structure (RBS);
 Development of comprehensive risks addressing strategies and
actions for all risks, including timelines of the action’s
implementation, and appointment of owners to all risks and actions.
Project Type C1 will follow the Standard PRM Study requirements with
the following exceptions:
 PRM events (Appendix A) will consist of desktop reviews which will
be chaired by risk management specialist or PMOD-approved Risk
Manager
 Risk identification will be guided by the use of a PMOD-standardized
risk checklist which is available in the Risk Management Guide.
No PRM activities are required for projects with capital budgets below
$10MM unless the IPT decides otherwise.
Specific deliverables of the PRM events for the four project types are
fully described in the Saudi Aramco PRM Guide.
Prior to Mechanical Completion, all risk information captured by the risk

software over the life of the project is to be captured as a knowledgebase.
This knowledgebase will provide future projects with an initial risk
register and risk specific lessons learned. Recommended PRM process
improvements will be captured by PMOD as part of the Lessons Learned
process. The risk information should be handed over to Operations upon
project completion.
6.3.3 PRM Coordination
Each project is responsible for the implementation of its own risk

management. This is inclusive of assigning a Risk Manager as the
central person within the project who is responsible to submit initial risk
data (PRM questionnaire) and key risk management documents for
PMOD’s review. The Risk Manager is also responsible for scheduling
PRM events/review meetings, soliciting an approved facilitator from
PMOD or consultants for PRM workshop facilitations services,
coordinating and maintaining an up-to-date Risk Register, monitoring
actions for completion and effectiveness as part of ongoing monitoring
and control activities.
Besides facilitation, PMOD can provide mentoring and support activities

to enable the project to commence risk management. PMOD can
Page 23 of 34
provide access to the software and training required to effectively

perform risk management on all projects. All projects that conduct risk
management must inform PMOD to ensure that the process used is
adequate, and to ensure all risk learning on the project is captured.
6.3.4 Key Risk Management Documents
The facilitated PRM workshops and desktop reviews produce four key
documents as described in the Saudi Aramco PRM Guide. They are as
follows:
1. Risk Questionnaire
This document contains key elements of the PRM context required

for risk management planning (step 1 of the PRM process).
The analysis of this document determines the scope and type of PRM
to be implemented for an individual project.
2. PRM Plan
a. Documents the project context, existing risk information, project
constraints, background risk information, major assumptions,
project uniqueness, risk strategy and risk tolerance.
b. Identifies cross-functional risk team (including subject matter
experts), risk relationships, escalation, process of enacting risk
responses, risk activity scheduling, risk reporting, and risk
training requirement.
c. Defines the depth and methods of analysis required during the
PRM process and the interval and detail required for reporting.
3. Risk Register
This document is a repository for all risk information and response

planning. It captures risk decisions and risk trends, and is the
primary tool used to understand and plan the management of risk.
This is managed through a dedicated software application.
4. Risk Reports
Risk reports include standard information summarizing the risk status

of the project (overall project risk exposure). Risk trends are
reviewed and key risk information is distilled into simple outcomes.
Estimates of future risk are included along with recommended
Page 24 of 34
response plans and actions that should be performed to address both

downside and upside project risks effectively.
Additional analysis is required at key stage gates prior to ERA for

Types A & B projects so that risk information can be included in any
stage gate decision. The analysis provides the following information
as part of the Risk Report:
a. Current level of risk in the project and whether it is within the
tolerances acceptable to Saudi Aramco
b. Actions that will be performed by the project team to further
reduce risk
c. Contingencies recommended for the project
d. Major outstanding risks for the project are recorded
e. Recommendations for changes to project objective or execution
plans to maximize value to the company.
6.3.5 PRM Deliverables
With the help of the Risk Management Specialist, the IPT should submit the
following deliverables after each PRM event as outlined in Appendix A.
1. Risk Management Plan
2. Risk Register
3. Risk Status Report
A soft copy of the Risk Register shall be maintained in Active Risk

Manager (ARM). The content of these deliverables should be relevant
and address the objectives of the respective gates. Gate objectives are
outlined in FEL Manuals of the Capital Management System.
6.4 Interface Management (IM)
6.4.1 Interface Management Process
Interface Management is the management of communications,

relationships, and deliverables among two or more interface
stakeholders. IM is based on a structured process that augments project
teams and construction contractors’ approach for decision making.
It ensures that all involved parties producing deliverables join to work as
a seamless single system. It is conducted continuously starting with the
preparation of Interface Management Plan during the DBSP and
commencing IM implementation during the Project Proposal phase to the
end of the Construction phase. IM is used to proactively minimize
Page 25 of 34
rework in achieving project objectives and maximize project efficiency

in terms of cost, schedule and quality. The process is defined by the
combination of specific project events outlined in Appendix A, as well as
a continuous process of monitoring and control to ensure all parties are
working towards the same goal in a compatible manner.
IM seeks to proactively manage all communications with and between

contractors regarding interface points where contract packages meet to
integrate the divisions of the overall facility being constructed.
IM successfully aligns stakeholders, EPC, service companies and
commissioning parties to deliver large scale projects on time and within
budget. Details of the Interface Management Plan are outlined in the
Front Loading Manual (FEL) – Book of Deliverables for IM.
6.4.2 Interface Management Guide
This document outlines the framework of IM and sets out a formal

process for the identification and management of interfaces within
Saudi Aramco capital projects. In the context of this document,
Interface Management is the systematic control of all communications
and interdependent activity that support project planning and execution.
6.4.3 IM Implementation
Establishing a systematic method or process for accomplishing project

interface management-related activities involves utilizing a standardized
web-based IT application. Having an IT application standardizes the
instructions and guidelines to be followed for Interface Management.
PEOD has deployed the Coreworx software as the tool for capital
projects to manage the IM value practice. The PEOD IM team works
closely with large capital projects to support the implementation of IM
points by utilizing Coreworx software. This enables the management
and tracking of all interface points where different contractors need to
integrate to realize the overall facility construction.
It is the responsibility of the project team to schedule a Global Interface

Management meeting and required workshops at least three times as
outlined in Appendix A.
6.4.4 Number, Type, and Method of Interface Points
The IPT is responsible for establishing the number, type, and method of
interface points required for each project package and uploading the
information into the IT application.
Page 26 of 34
6.4.5 Interface Points Documentation
All documentation related to interface points including agreements shall

be uploaded into the IT application.
6.4.6 Interface Management Plan
The Interface Management Plan identifies and details the interface

management approach, required interfaces to be tracked among existing
and new facilities and among contractors, and the tools to be used for
tracking the interface points.
The plan provides oversight of the interactions and information flow

between the major players. The main components of the document
include the following:
 Project Information
 Contractor Scopes of Work and Interfaces
 Master Interface Register
 Interface Management Process
Interface Roles & Responsibilities
This section outlines the roles and responsibilities of the three identified
roles in the Interface Management System which are:
 Interface Manager is the single point of contact for each Contractor
and approves electronic forms for the Contractor
 Technical Contact is the interface discipline lead for the Contractor
 IM Support is responsible for providing logistical support for the
Contractor
6.4.7 IM Deliverables
The IPT should submit the following deliverables after each IM event as
outlined in Appendix A.
 Interface Management Plan
 Number, Type, and Method of interface points

FEL Manuals of the Capital Management System.
Page 27 of 34
7 Capital Efficiency Value Improving Standards
Ten Value Improvement Practices benchmarked by IPA are defined in the following
section. Two of the practices are already part of the portfolio of value improving
practices addressed in Sections 5 and 6 of this procedure. The remaining practices are
defined in this section and their requirements are clarified.
7.1 Technology Selection
A formal systematic process by which a company searches for production

technology that may be superior to that currently employed. It is a method to
ensure that technology used by projects is the most competitive available
technology that meets the business objectives.
In Saudi Aramco, the Facilities Planning Department partners with proponent

organizations to evaluate capital investments, both technically and
economically, and to provide an independent assessment as to how they can best
contribute in the attainment of the Company’s business objectives.
Technology selection is part of the planning effort led by FPD during the
planning phases. P&CSD and CSD support this effort through the Technology
Selection Roadmap and Engineering Services Technology Program respectively.
This is a FEL deliverable during the Study phase.
7.2 Energy Optimization
A technical analysis aimed at optimizing the capital cost, operating cost, and
operability of a process unit, utility system, or manufacturing site to achieve an
optimal balance between capital and energy costs. The practice evaluates the
thermal efficiency of a process and/or multiple units in a production complex for
the purpose of improving the utilization of energy. This optimization is done to
achieve a process/facility configuration that is economically optimal.
In Saudi Aramco, capital projects involving the addition of or modifications to

industrial processes with fuel and/or power consumption exceeding $2 million per
year (combined) shall conduct a mandatory Energy System Optimization
Assessment study. The purpose of this study is to render optimized process and
utility capital as well as the efficient use of thermal and electrical energy.
The scope of the industrial energy study is defined as one that includes
cogeneration, fired heaters, boilers, pumps, compressors, steam turbines, or gas
turbines. Moreover, the purpose of the non-industrial study is to reduce operating
costs and improve the performance of the building. For the purposes of the non-
industrial energy study, a non- industrial building is defined as a structure (such as
a house, hospital, school and office buildings, stores) with a roof and walls that is
used as a place for people to live, work, do activities, store things.
Page 28 of 34
The study shall be conducted by a qualified independent third party from Saudi
Aramco’s current Approved Energy Consultants list. The scope of work of this
study shall be developed according to SAEP-42 and SAES-A-502. The study
scope, deliverables and study report shall be approved by the Energy Systems
division of the Process and Controls Systems Department (P&CSD).
The technical approach and work scope for the energy study should address all
of the following issues as applicable:
 Process Integration, using Pinch Analysis techniques (ref. SABP-A-009 and
SABP-A-12)
 Combined Heat & Power Complex Systems Optimum Design
(ref. SAES-A-502) Equipment Load Management policies
(ref. SABP-A-002 & SABP-A-008)
 Design and Installation of Heating, Ventilating and Air Conditioning
Systems (ref. SAES-K-001)
 Design and Installation of Building Thermal Envelop (ref. SAES-N-004)
 Lighting (ref. SAES-P-123)
 Saudi Aramco Building Code (ref. SAES-M-100)
 Building Architectural Design and Finishes Requirements
(ref. SAES-R-004)
 Energy efficiency on residential buildings (ref. SAES-A-503)
 Energy efficiency on non-residential buildings (ref. SAES-A-504)
This is a FEL deliverable during the DBSP phase.
7.3 Plot Plan Analysis - Part of the VE studies described in Section 6.1.5.
7.4 Process Simplification – Part of the VE studies described in Section 6.1.5.
7.5 Waste Minimization
A formal “process stream by process stream” analysis to identify ways to

eliminate or reduce, at the source, the generation of wastes or non-useful streams
from a chemical process. Such an approach might add additional equipment or
examine alternate process technologies that have lower waste side-streams.
For those streams not eliminated or converted into saleable by-products, it
provides the method for managing the resulting wastes. The practice
incorporates environmental requirements into the facility design.
Page 29 of 34
Saudi Aramco SAEP-13 and SAEP-1661 identifies the requirements of

conducting waste minimization assessment during the DBSP. This is a FEL
deliverable during the DBSP phase.
7.6 Design to Capacity – Part of the VE studies described in Section 6.1.5.
7.7 Reliability Availability and Maintainability (RAM) Study
The RAM study shall be performed as per SAES-A-030. Recommendations of

this RAM study shall be incorporated into the detailed design of projects for
implementation.
The objective of performing the RAM study in capital projects is to ensure that
competing technologies, designs and licenses, sparing capacity including
oversized design and capital spares requirements are evaluated and optimized in
order to secure capital and operational efficiency through the life net present
value (NPV) of the projects.
8 Responsibilities
8.1 Implementation of Practices
The responsibilities for the implementation of the requirements of this procedure

are as follows:
8.1.1 PMOD is responsible for:

 At the beginning of each year or at the initiation of each project,
assist the IPT to identify the required VIPs to be implemented for the
individual project, Budget Item (BIs), etc.
 Issue the Applicable VIP report to the IPT and identify the strategy
for facilitation services.
 Provide assistance in the selection of facilitators.
 Monitor the quality and the timeliness of the VIP sessions.
 Report the performance of the VIPs implementations using KPIs and
VIPs utilization report that measures the quality and success of the
VIP program.
 Provide facilitation services to the extent possible.
 PMOD administers the VIP applications and provides access to ARM,
Coreworx and VPMS systems. Projects should coordinate end-user
training requirements with PEDD or a qualified third party. As a last
Page 30 of 34
resort, PMOD may be approached to facilitate systems training on an

as-needed basis.
8.1.2 IPT is responsible for:

 Reviewing the recommended VIPs for the individual BIs at
beginning of each project and providing feedback to PMOD/PEOD.
 Soliciting and scheduling the facilitation services from engineering
contractors, approved facilitators or from PMOD/PEOD prior to the
optimum timing of the recommended practices.
 Keeping PMOD/PEOD informed of all value practices that will be
facilitated by engineering contractors
 Implementing the required VIPs and their recommendations and
providing status and study reports to PMOD/PEOD.
 Submitting VIPs facilitated by others to PMOD/PEOD.
 Document in the Value Engineering section of the PP the status and
resolution of all accepted VE proposals and provide justification for
the not accepted VE proposals.
 Reach a resolution in regards to the “Accepted for Further Study”
concepts. At the end of the PP, all items should be either “Accepted”
or “Not Accepted”.
 Provide a copy of the final VE report to PMOD/PEOD no later than
four weeks from the completion of the VE session in the PP or DBSP
phase.
 Submit Applicable VIPs Status Reports to Value Assurance during
Gate Reviews
8.1.3 FPD is responsible for:

 Review the recommended VIPs for the individual BIs and implement
the accepted measures during the Business Case, Study, and DBSP
phases and providing feedback to PMOD/PEOD.
 Soliciting facilitation services from engineering contractors,
approved facilitators or from PMOD/PEOD prior to the optimum
timing of the recommended practices.
 Incorporating the accepted VIP recommendations into the project
documents and/or deliverables.
 Document in the Value Engineering section of the PP the status and
resolution of all accepted VE proposals and provide justification for
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the not accepted VE proposals.

 Reach a resolution in regards to the “Accepted for Further Study”
concepts. At the end of the PP, all items should be either “Accepted”
or “Not Accepted”.
 Provide a copy of the final VE report to PMOD/PEOD no later than
four weeks from the completion of the VE session in the PP or DBSP
phase.
8.2 Facilitators
At the request of FPD, the IPT Project Leader/Manager or PMOD/PEOD shall
conduct the facilitation and prepare the final report within the required timeframe.
8.3 Other departments including the proponents

Ensure that the invited participants attend the required facilitation sessions.
Revision Summary
16 September 2015 Major revision to incorporate ATP-CE’s Capital Management System (CMS).
Page 32 of 34
Appendix A - Optimum Implementation Timing for VIPs and Summary of Value Improving Practices Criteria
FEL 0 FEL 1 FEL 2 FEL 3 EXECUTION
VIP
0%- 0%- 90%- 0%- 90%- 0%- 90%- 0%- 90%- 0%- 90%- 0%- 90%-
30% 60% 100% 30% 60% 30% 60% 30% 60% 30% 60% 20% 60% 20% 60%
10% 10% 100% 10% 100% 10% 100% 10% 100% 10% 100% 10% 100%
A, B, C
1 LLI A, B A, B A, B, C
C1
A, B, C A, B, C
A, A, B, C
2 PP&TA B, C C1
3
VE + A, B, C
A, B, C
A, B, *
(PS&DTC) C1
A, B, C, A, B, C, A, B, C,
4 PFSU A, B, C
C1 C1 C1
A, B, C,
5 CONST. A, B, C
C1
A, B, C
A, B, C A, B, C A, B, C A, B, C,
6 PRM A, B, C A, B
C1 C1
A, B
C1 C1
A, A,
7 PDRI B, C
A, B, C
B, C
8 IM A, B, C A, B, C A, B, C A, B, C
9 SC+CM A, B, C
A, B, C,
10 SO * C1
A, B, C
11 LLC A, B, C A, B, C A, B, C A, B, C
C1
 As needed basis. FIGURE 1-1 - Optimum Implementation Timing for Value Improving Practices
VIP PROJECT TYPE VALUE > PARTICIPANTS

1 LLI A, B, C, C1 $10 MM SAPMT, Proponent, FPD, ID, LPD, Contractor, and other parties as needed
2 PP&TA A, B, C, C1 $30 MM SAPMT, Proponent, FPD, ID, LPD, Contractor, and other parties as needed
3 VE A, B, C, C1 $30 MM FPD, CSD, SAPMT, Project Stakeholders, PMOD
4 PFSU A, B, C, C1 $30 MM Project Stakeholders, PMT, Proponent, Contractor, etc.
5 CONST. A, B, C, C1 $30 MM SAPMT, ID, Contractor
6 PRM A, B, C, C1 $ 10 MM SAPMT, Proponent, Contractor, and other parties as needed
7 PDRI A, B, C, $30 MM SAPMT, Proponent, Contractor, and other parties as needed
8 SC+CM A, B, C, $30 MM SAPMT, Contractor
9 IM A, B, C, $50 MM SAPMT, Proponent, Contractor, and other parties as needed
10 LLC A, B, C, C1 $10 MM SAPMT, Proponent, FPD, ID, LPD, Contractor, and other parties as needed
FIGURE 1-2 - Summary of Value Improving Practices Criteria
Page 33 of 34
Appendix B - Saudi Aramco Projects Portfolio Characterization
Page 34 of 34

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Engineering Procedure

SAEP-367 16 September 2015

Saudi Aramco DeskTop Standards

Appendix A – Optimum Implementation

Previous Issue: 24 April 2011 Next Planned Update: 16 September 2018

Copyright©Saudi Aramco 2015. All rights reserved.

2 Conflicts and Deviations

The latest edition of the applicable reference documents shall be applied:

3.1 Saudi Aramco References

Saudi Aramco Engineering Procedures

Saudi Aramco Engineering Standards

Saudi Aramco Best Practices

3.2 Industry Codes and Standards

Construction Industry Institute (CII) Publications

Construction Agency: The organization assigned to execute the project.

Project Management: The Saudi Aramco Project Management administrative area

Integrated Project Team (IPT): A team composed of appointed members from

Saudi Aramco Project Management Team (SAPMT): The Construction Agency

5 Definition of Value Improvement Practices

Value Improving Practices (VIPs) are out-of-the-ordinary practices used to improve

 Project Risk Management (PRM): Seeks to anticipate and address

Applicable Value Improving Practices Plan: A project-specific plan that indicates

Value Practices Management System (VPMS): A web-based automated tool that

Value Improving Practice sessions shall only be facilitated by PMOD facilitators,

The “Optimum Implementation Timing” and “Summary Criteria” of the recommended

6.1 Value Engineering

Value Engineering (VE) is a function–oriented, multidisciplinary team approach

The Value Engineering exercise typically results in savings of 5-10% of life-

VE studies shall only be facilitated by a Certified Value Specialist (CVS),

Requests for VE study guidance and information on consultants and local

6.1.1 VE Study Criteria/Implementation Criteria

For C1-type projects, VE should be conducted once at 30% PP stage.

Unless a prior waiver is obtained from PMOD, the Construction Agency

If deemed necessary, the Construction Agency may initiate a formal VE

6.1.2 DBSP Phase

During the DBSP phase, Facilities Planning Department (FPD) initiates a

6.1.3 Project Proposal Phase

6.1.4 Detailed Design Phase

During the DD phase, the Construction Agency may initiate a VE study

6.1.5 Additional VE Requirements

VE shall be conducted with special emphasis on the following areas:

6.1.6 VE Proposal Implementation & Reporting Requirements

The effectiveness of a VE study depends on the successful

scope to reflect the Value Engineering study recommendations which

b) Implementation meeting information which includes the names

The content of these deliverables should be relevant and address the

A copy of the final VE report shall be distributed to PMOD/PEOD no

6.2 Best Practices

6.2.1 Lessons Learned

Lessons Learned is defined as knowledge gained from experience,

6.2.1.1 Lessons Learned Implementation (LLI)

Lessons Learned Implementation is a structured and systematic

As outlined in Appendix A, SAPMT shall initiate and hold

In these workshops, projects will select lessons/pitfalls

The content of these deliverables should be relevant and

are outlined in the FEL Manual of the Capital Management

6.2.1.2 Lessons Learned Collection (LLC)

Lessons Learned Collection is a structured and systematic

As outlined in Appendix A, Saudi Aramco projects shall hold