FEL Work Process
FEL Work Process
FEL Work Process
VIP Reports
FEL 2 (FEASIBILITY PHASE) DELIVERABLES
Strategic Business Assessment
Materials Of Construction
VIP Reports
FEL 3 (DEFINITION PHASE) DELIVERABLES
Strategic Business Assessment
• Contracting Plans
METHODOLOGY
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
• Higher Probability Of Project Success In Terms Of Cost, Schedule And Change Orders
• Lower Probability Of Project Success In Terms Of Cost, Schedule And Change Orders Without Further Definition
Improvement
WHAT IS PDRI?
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
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