FEL Work Process

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 11
At a glance
Powered by AI
The document discusses front-end loading (FEL) phases, tools to measure project definition like the Project Definition Rating Index (PDRI) and IPA's FEL Index, and factors that influence scores on these tools.

The three main FEL phases discussed are the Conceptual Phase (FEL 1), Feasibility Phase (FEL 2), and Definition Phase (FEL 3). Each phase has increasing levels of deliverables and project definition.

The Project Definition Rating Index (PDRI) developed by the Construction Industry Institute (CII) and IPA's FEL Index are two tools discussed for measuring the level of project definition. The PDRI involves a facilitated workshop while the FEL Index involves a proprietary 2-day assessment by IPA consultants.

FEL 1 (CONCEPTUAL PHASE) DELIVERABLES

Strategic Business Assessment

Key Technology Selected & Risk Identified

Market Assessment For Feed, Products & Capacity

Potential Sites Identified & Under Evaluation

Cost Estimate (+/- 40%)

Preliminary Project Milestone Schedule

Block Flow Diagrams Completed

Process Cases Identified

Critical Long Lead Equipment Identified

VIP Reports
FEL 2 (FEASIBILITY PHASE) DELIVERABLES
Strategic Business Assessment

Project Schedule Level 1

Cost Estimate (+/- 25%)

Overall Project Execution Strategy

Contracting & Purchasing Strategies

Permitting & Regulatory Compliance Plan

Soil Survey & Report

Project Alternatives Analysis

Process Flow Diagrams For Selected Option(s)

Preliminary Utility Flow Diagrams & Balances

Preliminary Equipment List & Equipment Load Sheets

Materials Of Construction

VIP Reports
FEL 3 (DEFINITION PHASE) DELIVERABLES
Strategic Business Assessment

Detailed EPC Project Master Schedule

Completed Environment Permit Submittal

Project Plan / Project Execution Plan


• Cash Flow Plan for EPC Phase

• Training, Commissioning & Startup Plans

• Contracting Plans

• Materials Management Plan

• Safety Process & Quality Management Plan

Cost Estimate (+/-10%)

Finalized Utility Flow Diagrams & Balances


FEL 3 (DEFINITION PHASE) DELIVERABLES (CONT’D)

P&ID’s - Issue IPL


Plot plans & Critical Equipment Layouts
Equipment List & Equipment Datasheets
Single-line Electrical Diagrams
Control System Summary & Control Room Layout
Materials of Construction
VIP Reports
Process Hazards Analysis
FEL BENCHMARKING

METHODOLOGY

• Facilitated Project Definition Rating Index


(PDRI)

COMMERCIALLY AVAILABLE 3rd PARTY


METHODOLOGY

• Independent Project Analysis, Inc. (IPA) - FEL


Index
PROJECT DEFINITION RATING INDEX (PDRI)
Developed By Construction Industry Institute (CII)

Non-proprietary, Facilitated Workshop Performed In-house At The Beginning Of The Job And At The End Of
Each FEL Phase Beginning To Assess The Level Of Project Definition

Lower PDRI Scores Indicate


• A Better Defined Project Because

• The Project Is In Later FEL Phases (Later FEL 2 And FEL 3)

• More Key Elements Of The Project Have Been Adequately Defined

• Higher Probability Of Project Success In Terms Of Cost, Schedule And Change Orders

Higher PDRI Scores Indicate


• A Lesser Defined Project Because

• The Project Is In Earlier FEL Phases (FEL 1 And Early FEL 2)

• Fewer Key Elements Of The Project Have Been Adequately Defined

• Lower Probability Of Project Success In Terms Of Cost, Schedule And Change Orders Without Further Definition
Improvement
WHAT IS PDRI?

A Simple And Easy-to-use Indicator Of The Degree Of Scope Development On Industrial


Projects

It Contains A Comprehensive Checklist Of 70 Scope Definition Elements With 1,000 Total


Possible Points

A Score Of 200 Or Less Indicates A High Probability Of A Successful (Best Practical) Project

No Numerical Correlation Exists Between The PDRI Score And IPA’s FEL Index Score

Developed Based On Data Obtained From 40 Capital Projects


DEVELOPMENT OF PDRI
PERFORMANCE PARAMETERS

PERFORMANCE SCORE < 200 SCORE > 200 Difference


PARAMETER

Cost
- 5% + 14% 19%

Schedule
- 1% + 12% 13%

Change Orders
+ 2% + 8% 6%
IPA’s FEL INDEX

Proprietary Methodology
Assessment Performed by outside Consultant from IPA
Generally a 2-day exercise prior to decision gate
<4.75 at end of FEL 3 = “Best Practical” FEL Index Score
IPA’s Target FEL Index Scores:
• End of CONCEPTUAL PHASE: 7 - 10
• End of FEASIBILITY PHASE: 6-7
• End of DEFINITION PHASE: 4.75 - 5
IPA’S FEL INDEX SUMMARY
BEST
PARAMETER GOOD FAIR POOR UNDEFINED
PRACTICAL
Estimate Basis Detailed equip. list, full Detailed equip. list Factoring, some Factoring only, no Factoring based on a
vendor quotes some vendor quotes. prelim. Quotes prelim. Quotes. similar plant.

User Input Operations deeply involved Some plant input to Plant reviews Limited plant input to No input from plant
with plant design and design and layout. conceptual design. design. operations.
Layout Well understood.

Environmental Recommendations from Actions formulated to Preliminary Needs not yet No site-specific
Health And Safety health/safety reviews meet health/safety assessment of needs identified. information.
implemented. review -reviews pending
Reviews
recommendations.

Permits All actions implemented to Needs well known Most permitting needs Only limited Assumed, permit
achieve issue of permits. and permitting known. information about requirements not yet
May not yet be available. process begun. permit requirements. identified.

Plot Plans Based on equipment Primarily based on Preliminary Equipment known but General equipment
dimensions and access equipment assessment of no configuration known but no
req. dimensions and detailed requirements. established. specifics.
Detailed plot plans, P&IDs access requirements.
available.

Project Execution Contracting strategy, Contracting strategy, No detailed, Only milestones Assume - general
Plan project schedule and project schedule and coordinated established without milestones only.
participating roles set. participant roles set. schedule. Preliminary detailed achievement
Detailed schedule No detailed schedule. assignment of plan.
complete. participant roles.

Soils Data Borings complete and Sample borings Sample borings Preliminary - sample Assumed from
results known for exact site Initiated at exact site initiated at plant site. borings in general general geotechnical
locations where equip. will locations where area but not specific data for the area.
be placed equip. will be placed. site.
CONCLUSIONS

A low FEL Index score from IPA does NOT guarantee highest
profitability – it is an indicator only
Go for better project definition and the PDRI or IPA scores will follow
Focus on the proper level of definition required to support the accuracy
of the project cost estimate
Pay attention to the higher weighted categories that makeup the
definition scores
No direct numerical or statistical correlation exists between PDRI and
IPA scores

You might also like