VDI Expertenforum WMiE 2013 - Lessons Learnt (Gonsior)

Learning from experience of projects teams:

Lessons Learnt Process at TK Uhde

Gregor Gonsior

VDI-Expertenforum

WM im Engineering

23. Mai 2013


May 2013

ThyssenKrupp Uhde

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ThyssenKrupp UhdeA process-oriented project delivery company

ThyssenKrupp Uhde is a process-oriented EPC contractor that provides world-class process plant solutions to producers around the globe

� Latest process innovation, broad technology

portfolio and world-class project delivery

� A global network of engineering offices

and a workforce of 5,900 employees

combine local knowledge with global

expertise

� A track record of more than 2,000

full-scale process plants implemented

worldwide


May 2013

ThyssenKrupp Uhde

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ThyssenKrupp GroupBusiness Areas

Fiscal Year 2011/2012: Sales € 47.01 billion Employees 168,000

ThyssenKrupp

Steel Europe

Steel Americas

Materials ServicesComponents Technology

Elevator Technology

IndustrialSolutions

ThyssenKrupp Uhde


May 2013

ThyssenKrupp Uhde

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0

500

1000

1500

2000

2500

07/08 08/09 09/10 10/11 11/12

0

1000

2000

3000

4000

5000

6000

Facts and Figures - ThyssenKrupp UhdeSales, Order Intake, Employees

Sales Order Intake acc. to Regions

Sales and Employees Facts and Figures

BY 2010/11 BY 2011/12

Order Intake 1,613 1,122

Sales * 1,428 1,330

Order backlog 2,978 2,803

Eng. capacity (Mio hours) 7.1 7.4

Equity capital * 557 584

* acc. to IFRS

€ in millions

Employees

Sale

s:

€in

millio

ns

Americas

India/ME

Europe/Africa

Asia/Pacific

2009/10 2010/11

In %

10

18

57

15

20

33

36

11

2009/10 2010/11

Fertiliser

Base Chemicals

Polymers

Contracting Services

46

21

17

16

36

21

24

19

€1,450m €1,428m

In %

€1,613m€1,497m

19

30

20

31

€1,330m

2011/12 2011/12

26

40

18

16

€1,122m


May 2013

ThyssenKrupp Uhde

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ThyssenKrupp Uhde Fields of ActivityThyssenKrupp Uhde implements clients expectations by means of innovative technologies, competent engineering and customised services

,

Fertiliser

Base Chemicals

Polymers

R&D

Chemicals /

Petrochemicals

Upstream

Oil and Gas

Refining

Offsites &

Utilities

Basic Services

System Services

Performance &

Technology Services

Consulting Services

Technology

ContractingServices


May 2013

ThyssenKrupp Uhde

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More than 2,000 plants built by ThyssenKrupp Uhde - worldwide ID142

130 plants

115 plants375 plants120 plants

500 plants150 plants

Fertilisers RefineriesNitric acid Aromatics

185 plants 380 plants 75 plants

Org. Chemicals/petrochemicalsHydrogen, ammonia, methanol Plastics, synthetic fibres Polyester / polyamides

400 plants

Electrolysis Coke plant technologies

105 plants

Tank storage facilities

100 plants

Gasification


May 2013

ThyssenKrupp Uhde

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Customer Profile

Our customers are

� chemical and petrochemical companies worldwide

� oil and gas companies worldwide

� special-purpose companies owned by institutional and private investors

� private and state-owned companies


May 2013

ThyssenKrupp Uhde

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Global Engineering Network7.4�million�engineering�hours�per�year - local�knowledge�combined�with�global�expertise

MelbourneJohannesburgRio de Janeiro

Mexico City Mumbai/ Pune

Cairo

Bangkok

Hanoi

Al Khobar

Duba

i

Shanghai

Tokyo

Nizhny Novgorod

Dzerzhinsk

Moscow

Pittsburgh, PA

Germany

Beijing

Americas

Employees: 350

Eng. hours: 470,000

Europe/Africa

Employees: 3,400

Eng. hours: 4,100,000

Asia/Pacific

Employees : 700

Eng. hours : 900,000

India/Middle East

Employees: 1,400

Eng. hours: 1,900,000

Central Engineering Hub:

Uhde Mexico


Uhde Russia


Uhde India


Uhde Thailand

Roermond Domat/Ems

Mailand

London


May 2013

ThyssenKrupp Uhde

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• Professional constructionmanagement execution,in-house and on site

• Qualified constructionmanagement resourcesat all locations

• Premium quality of construction work and common“best-practice” CM processes and tools

• Allocation of most suitable execution conceptand management resources to each individual project

• Uniform workflows, toolsand project reporting

• Worldwide resource management andqualification

• Globally harmonized engineering processes, methods and tools

• Tailor-made developmentprograms for the local organisations

• Global engineering resourceutilisation and management

• Global framework agreements with major vendors

• Common purchasing, expediting and inspectionstandards at all locations

• Qualified inspectionpersonnel atall locations

Global Project Management Global Procurement

Global Engineering Global Construction Management

Global Functions Specific local expertise transformed into one global capability

• Defining of basic rules to meet companies responsibilities (regulatory requirements)

• Managing of QM documents

• Organization of audits and co-ordination of third party audits

• Implementation of Global Procedures (standards) in the whole TK Uhde Group

• Support of project QM and HSE Managers on site; regular benchmarking & reporting

• Assessment of project related experiences and deriving of process improvements

Global Quality Management, HSE & Security


May 2013

ThyssenKrupp Uhde

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Typical Project at ThyssenKrupp Uhde Complex set-up to meet the organizational and operational requirements

• Project (Contract) Value: 500 Mio. €

• Project Duration: 4 years

• Project Categorization: A, (B, C, D); defined assessment

• Project Phases: (Bid) –

Basic Engineering –

Detail Engineering –

Procurement –

Construction / Erection –

Commissioning –

(Service)

• Project Organization: Task Force with ~ 50 team members

• Key Responsibilities: Project Manager, Engineering

Manager, Procurement Manager,

QM/HSE Manager, Lead Engineer(s)

• Split-of-Work: Often some Uhde Local Organizations

involved (e.g. Germany + India)

• Split-of-Supply: Always a high number of specialized

suppliers, some for very complex units


May 2013

ThyssenKrupp Uhde

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Project Set-Up with a complex Work-Breakedown-StructureO plus consideration of matrix organisation required

Engineering Manager Procurement Manager Erection Manager

Project Manager

Time-SchedulingCommercial Manager QM/HSE Manager

Basicengineering

Detail engineeringErection and

commissioningHand-overProcurement

� Plant design

� Civil engineering

� Instrumentation

� Electrical engineering

� Equipment

- machinery

- process vessels

- package units (PU)

- offsites / utilities

�Plant design

�Piping engineering

�Civil engineering

�Instrumentation

�Electrical engineering

�Equipment

- machinery

- process

vessels/PUs

- offsites

�� Process engineering

�� Erection engineering and inhouse co-ordination

Partner

UHDE Local Organisation

� Procurement

� Expediting

� Inspection

� Logistics

� Commercial admin.

� Technical admin.

� Materials management

� Construction/steel

construction work

� Erection work

- equipment

- piping

- electrical engineering

- instrumentation

- paintwork / insulation

� Commissioning

Document Manager


May 2013

ThyssenKrupp Uhde

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Rule-of-ten: Impact of failures to the overall project costs “First-pass-yield” in engineering must be increased to a maximum

BasicEngineering

Procurement

DetailEngineering

Erection /Commission.

Bid

What efforts / costs are required to correct detected failures in

dependence of the project phase...

Eff

ort

s / C

ost

s re

qu

ired

Correction of few data or

drawings without impacts

to contracts or other

disciplines

Correction of some data

or drawings with

consideration of impacts

to other disciplines and

external suppliers

Re-order, re-

arrangement or plant re-

planning with severe

impacts to the erection

process or plant

performance

Customers claims and /

or contractual penelties

with additional loss of

reputation and customer

retention

HandOver


May 2013

ThyssenKrupp Uhde

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Systematical approach required to reduce the failure rate Standardization, communication + continuous analysis of Lessons Learnt

Consequences:

• increasing of the „first pass yield“ significantly reduces

the overall project costs

but

• a „failure rate“ of 0.0 % is not realistic in plant

engineering

Of course, we strive for lowest possible „failure rate“!

A systematical Lessons Learnt Process is a good approach

to learn continuously from experience and to reduce the

failure rate in the medium term.

It helps to detect failures in time and to avoid their repetition.

In addition to this „good practices“ can be recognized and

implement quicker in the organization.


May 2013

ThyssenKrupp Uhde

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Core Elements of the Standardized Lessons Learnt Process Simple & stable process, with integration in QM system

Collection

Application

Lessons

Learnt

Process

Improvement

Process(es)

…

…

…

……

…

a

e

Individual

experiences of

project team

members

Initiation of

Improvements

c

Disseminationd

Analysis &

Consolidation

b

Details described in a

Global QM Procedure


May 2013

ThyssenKrupp Uhde

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Mandatory Lessons Learnt Process ... by integration in QM system

Process description and

integration in QM System gives the

opportunity to make it mandatory in

project execution


May 2013

ThyssenKrupp Uhde

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Integration of the Lessons Learnt Process in Project Execution Permanent collection of experiences; repeated analysis & consolidation

Execution PhaseBid Phase

EDC Effective Date of Contract

PAC Provisional Acceptance Certificate

FAC Final Acceptance Certificate

BE Basic Engineering

DE Detail Engineering

Bid-

NoBid

signingor

lossofproject

EDC PAC FAC Close

ProjectBid-sub-

mission

BE DE PROCUREMENT,ERECTION COMMISSIONING

Gatherandtakeinto

accountexistingLL

optionalactivity,dependingonmanagementdecision

mandatoryactivityforallA,Bprojects

ApplicationofLessonsLearnt...

GenerationofLessonsLearnt...

Analyse&Consolidate

collectedexperiences

Collectindividualexperiences Collectindividualexperiences

ApplyexistingLessonsLearnt ApplyexistingLessonsLearnt

Activities within the Lessons Learnt Process

mandatoryactivityforallA,BandCprojects


May 2013

ThyssenKrupp Uhde

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Process with described responsibilities and supportsNominated Lessons Learnt Co-Ordinator required

Collection

Analysis &

Consolidation

Initiation of

Improvements

Dissemination

of Results

Application

1

2

3

4

5

Who When

• All members of project teams

• All employees who support projects

• Over the (whole) course of

the project execution

• Project Management + Lead Engineers

• Topic Experts

• (Line Responsibles)

• After completion of major project

phases or big work packages

• If significant changes occur

• If severe failures occur

• Line Responsibles • After hand-over of project related

LL results and detailing of

improvements

• After consolidation and release of

LL results by the project team

• All members of project teams

• All employees who support projects

• In the start phase of a new project

• When a project reaches the next

major phase

Supportive measures /

tools

• LL Database

• permanent agenda topic

in project meetings

• LL Database

• regular LL Workshops

within the project team

• LL Database

• internal meetings

• internal publications

• LL Database

• Project Kick-Off‘s

• Line Responsibles

• Project Management + Lead Engineers

• Lessons Learnt Co-Ordinators

• LL Database (to register

the improvement status)

• other Improvement Mngt.

Frameworks


May 2013

ThyssenKrupp Uhde

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Lessons Learnt Database as a supportive toolIntegrated into “UhdeNet”, the ThyssenKrupp Uhde Intranet

A supportive (IT-) tool

must not be used as

the only presence of

the process

but:

It helps a lot to stay

present for all

employees and in all

project teams


May 2013

ThyssenKrupp Uhde

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Lessons Learnt Workshops to analyse the gained experience Some success factors

Location, without disturbance

by day-to-day workload

Clear aims and

workshop rules

Small groups (4O 7

participants) for detail

discussions

Good preparation of all

participants in advance

to the workshop

Appropriate presentation

techniques

Moderation by

external or - at least

- not in project

involved people

Open and factual

atmosphere


May 2013

ThyssenKrupp Uhde

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Resumé: Lessons Learnt process at ThyssenKrupp Uhde Successful implementation by close integration into Project Execution

• LL Process mandatory at TK Uhde

• Described by a (global) QM procedure

• Integrated into the Project Execution

• Process supported by several

measures, not only by IT tools

• Nominated Lessons Learnt Co-

Ordinator(s) as facilitators

• Influences on quality of project results:

� by direct reduction of failure rates

� by faster identification of

improvement demands

� by an increased communication

within the project team


May 2013

ThyssenKrupp Uhde

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