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OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS - SAUDI ARABIA) THESIS DEFENSE OMRAN ZAIN OMRAN KING FAISAL.

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Presentation on theme: "OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS - SAUDI ARABIA) THESIS DEFENSE OMRAN ZAIN OMRAN KING FAISAL."— Presentation transcript:

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2 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS - SAUDI ARABIA) THESIS DEFENSE OMRAN ZAIN OMRAN KING FAISAL UNIVERSITY

3 STUDY STRUCTURE OUTLINE CONCLUSION AND RECOMMENDATIONS PROGRAM GUIDLINES FIELD STUDY- QUESTIONNAIRE INTRODUCTION FIELD STUDY- STUDY CASES OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

4 DEFINITION OF STARTUP PHASE OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

5 OBJECTIVES OF THE STUDY  To carry out an in depth examination of the startup phase of construction projects, specifically airports.  To study and analyze the role of the startup phase of projects in relation to project cost, time, and efficiency.  To examine the startup procedures.  To come up with a comprehensive program or guidelines that will help people involved in the construction industry. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

6 GENERAL TYPES OF STARTUP TURNKEY STARTUP PHASED STARTUP 1 2 The choice of either type is dependent on number of factors on which a decision is made. Client’s resources Size of the project Complexity of the project Time constraints OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN The contractor would undertake the design and commission a complete installation until the time when the client would “turn the key” for full operation. Large systems are handed over to the client systematically throughout the commissioning period. Individual units are tested and rendered operational.

7 Finish/ Cleanup SEQUENCE OF STARTUP PHASE EXECUTION Pre-commissioningCommissioningInitial Operation System(s) tests under load Increase load to meat design load Non-operating checks First equipment completion Mechanical completion Construction completion Startup of facility Project termination OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

8 AIRPORT STARTUP MILESTONES AOT DEDICATION COMERCIAL OPERATION START 87 % 55 % 80 % 100 % AOR PROCESS STARTS O&M CONTRACTS OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

9 STARTUP PREVAILING CONSTRAINTS AND REGULATIONS TIME MATERIALS AND PEOPLE MONEY LOCAL REGULATIONS OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

10 Systems AIRPORT OPERATIONAL READINESS (TRIAL OPERATION) AIRPORT OPERATIONAL READINESS (DD/ MM/ YYYY ) Operational Conditions Procedures Directions Training Construction Evaluation of Facilities/ Procedures/ Training STARTUP OF OPERATION OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

11 FIELD STUDY FIELD STUDY- QUESTIONNAIRE REVIEW OF STUDY CASES EXTENSIVE READING IN THE AREA Design/ distribute study questionnaire to practitioners. Tabulate and analyze the responses of practitioners. Interview practitioners in the local int’l airports. Review of study cases from local int’l airports: KAIA, KKIA and KFIA. Review of study cases from foreign int’l airports: Munich and Oslo airports. Analyze startup procedures implemented in study cases. Review of collected literature on startups of industrial projects. Review of the collected literature on startups of airport projects. Analyze collected literature on startups of airport and industrial projects. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

12 FIELD STUDY- QUESTIONNAIRE Questionnaire Structure Range of Disagreement (Negative Mean Score) Range of Agreement (Positive Mean Score) Neutral or No Response OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

13 FIELD STUDY- QUESTIONNAIRE Personal Experience Vendor startup information On -job training Operation manuals Site visits.In-house training ConsultancySeminarsJournal articles Question sub-categories Rating Average Q.II: How would you rate the following means of learning about startup? Question Sub-categoriesRating Avg. Personal Experience3.88 Vendor startup information1.68 On -job training3.24 Operation manuals2.92 Site visits.3.84 In-house training2.88 Consultancy2.08 Seminars0.92 Journal articles0.64 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

14 Q.IV: Rate each of the following terms as best describing this phase Question sub-categories Rating Avg. Startup phase 3.56 Commissioning phase 2.12 Pre-operational phase 2.64 Close-out phase Startup phaseCommissioning phasePre-operational phase Close-out phase Question sub-categories Rating Average FIELD STUDY- QUESTIONNAIRE OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

15 FIELD STUDY- QUESTIONNAIRE Q.V: Rate each of the following sources of obtaining information about startup Question Sub-categoriesRating Avg. Site visits3.68 Personal interviews2.64 Case study2.12 Literature review1.92 Experience4.32 Questionnaires Site visitsPersonal interviewsCase studyLiterature reviewExperienceQuestionnaires Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

16 FIELD STUDY- QUESTIONNAIRE Q.VI: How early in the project should startup be discussed? Question Sub-categoriesRating Avg. Planning phase1.76 Design phase1.4 Construction phase (final phase)3.72 Construction phase (first phase)2.28 Feasibility phase-0.4 Concept phase Planning phaseDesign phaseConstruction phase (final phase) Construction phase (first phase) Feasibility phaseConcept phase Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

17 FIELD STUDY- QUESTIONNAIRE Q.VII: How early in the project should startup be introduced? Planning phaseDesign phaseProcurement phase Construction phase (first third Construction phase (second third) Construction phase (final third) Question sub-categories Rating Average Question Sub-categoriesRating Avg. Planning phase1.6 Design phase1.48 Procurement phase1.6 Construction phase (first third2.32 Construction phase (second third)2.8 Construction phase (final third)3.16 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

18 FIELD STUDY- QUESTIONNAIRE Q.IX: What should be the composition of the startup team (you can select more than one) Question Sub-categoriesPercentage Operations96 Engineering group84 Project Construction team60 Construction management group72 Contractors72 Consultant(s)64 Equipment manufacturers OperationsEngineering Group Project Construction Team Construction Management Group ContractorsConsultant(s)Equipment manufacturers Question sub-categories Percent OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

19 FIELD STUDY- QUESTIONNAIRE Q.X: How early should the operations group get involved in the project? Question Sub-categoriesRating Avg. Design phase1.92 Planning phase2.56 Feasibility phase0.96 Procurement phase-0.08 Construction (first third)1.4 Construction (second third)2.36 Construction (final third)3.12 Startup phase Design phasePlanning phase Feasibility phase Procurement phase Construction (first third) Construction (second third) Construction (final third) Startup phase Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

20 FIELD STUDY- QUESTIONNAIRE Q.XI: When should the operations group come on site physically? Question Sub-categoriesRating Avg. Construction phase(first third)0.76 Construction phase(second third)1.92 Construction phase(final third)3.68 Startup phase Construction phase (first third) Construction phase (second third) Construction phase (final third) Startup phase Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

21 FIELD STUDY- QUESTIONNAIRE QXII: Who do you think are the key players involved in project startup? Question Sub-categoriesRating Avg. Owner as client (Operations)4.44 Engineering group3.28 Project construction team2.32 Construction management group2.84 Equipment manufacturers0.56 Contractors2.12 Consultant(s) Owner as client (Operations) Engineering group Project construction team Construction management group Equipment manufacturers ContractorsConsultant(s) Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

22 FIELD STUDY- QUESTIONNAIRE Q.XIV: Based on your experience, does startup suffer from the following? Question Sub-categoriesRating Average Schedule delays/overruns4 Cost overruns2.88 Project frustration/abandonment1.56 Substandard performance1.2 Accidents Schedule delays/overruns Cost overruns Project frustration/abandonment Substandard performance Accidents Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

23 FIELD STUDY- QUESTIONNAIRE Q.XV: What are the key factors for effective startup? Question Sub-categoriesRating Average Competent startup team2.04 Effective communication3.72 Proper coordination2.88 A formal setup plan & schedule4.24 Strong project leadership4.64 Early involvement of operations group3.8 Adequate human resources3.8 Knowledge of complex technology2.84 Safety consciousness3.12 Contingency plans3.28 Computerized systems Competent startup team Effective communication Proper coordination A formal startup plan & Schedule Strong leadership Operations Involvement Adequate Human Resources Knowledge of complex Tech. Safety consciousness Contingency plans Computerized systems Question sub-categories Question Sub-categoriesRating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

24 FIELD STUDY- QUESTIONNAIRE QXIV: What are the key factors that contribute to ineffective startup? Question Sub-categoriesRating Average Poor planning & scheduling4.48 Poor coordination among players4.56 Weak commissioning team4.2 Weak project leadership4.4 Unclear responsibility matrix4.08 Friction between protect team3.24 Non-availability of suppliers2.8 Unclear contract wording Poor planning & scheduling Poor coordination among players Weak commissioning team Weak project leadership Unclear responsibility matrix Friction between protect team Non-availability of suppliers Unclear contract wording Question sub-categories Rating Average OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

25 STUDY CASES KING ABDUL- AZIZ INTERNATIONAL AIRPORT OPERATIONAL READINESS FUNCTIONAL AND ORGANIZATIONAL CHART DIRECTOR,IAP OPERATIONAL READINESS COMMITTEE OPERATIONAL READINESS COMMITTEE TRANSITION TASK FORCE TECH. COORDINATION AND SUPPORT COMMITTEE 80 TRANSITION SCHEDULING GROUP IAP/ CM TECHNICAL COORDINATION COMMITTEE IAP, CM, KAIA CONTRACTORS, GOVT. AGENCIES, AIRLINES, TENANTS, ETC. OPERATIONS COMMITTEE PROPERTIES COMMITTEE FACILITIES PLANNING COMMITTEE SECURITY COMMITTEE PROJECT ORGANIZATIONS WITH COORDINATION/ FEEDBACK FUNCTIONS 1 1 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

26 STUDY CASES KING KHALID INTERNATIONAL AIRPORT OPERATIONAL READINESS FUNCTIONAL AND ORGANIZATIONAL CHART AIRPORT DIRECTOR GENERAL OPERATIONAL READINESS COMMITTEE King Khalid International Airport International Airports Projects Bechtel company & Outside Agencies KKIA Departments Task Force Director PlannersSchedulers Project Control Group Coordinator King Khalid International Airport Staff Operations Properties Security Support Facilities Engineering Management Maintenance & Utilities Government Liaison Project Control 2 2 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

27 STUDY CASES KING FAHD INTERNATIONAL AIRPORT OPERATIONAL READINESS FUNCTIONAL AND ORGANIZATIONAL CHART OPERATIONAL READINESS COMMITTEE Executive Committee PlannersSchedulers Project Control Group Certification Teamwork Coordination w/ Users Teamwork Dedication Teamwork Administration Affairs Teamwork Equip. & Materials Teamwork Properties Teamwork Operations Teamwork Engineering Teamwork 3 3 Facilities Teamwork OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

28 STUDY CASES MUNICH INTERNATIONAL AIRPORT OPERATIONAL READINESS FUNCTIONAL AND ORGANIZATIONAL CHART Management Chief Technical Planning General Project Manager Operational Director Technical Director Planning Execution Start-up N Functional core processes Sub-functional processes Start-up FMG/ agiplan 4 4 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

29 DEVELOPMENT OF PROGRAM GUIDELINES LITERATURE REVIEW FIELD STUDY & STUDY CASES PROGRAM GUIDELINES OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

30 PROGRAM GUIDELINES SIMPLE PRACTICLE INEXPENSIVE FLEXIBLE CHARACTERISTICS OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

31 PROGRAM GUIDELINES OBJECTIVES OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

32 PROGRAM GUIDELINES General Guidelines Planning & Management Guidelines During & Post Construction Guidelines Staffing & Training Guidelines STRUCTURE OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

33 PROGRAM GUIDELINES General Guidelines 1 1. Upper management must give adequate attention to the startup phase. 2. Allocate the required resources for startup. 3. Carefully define and provide the required information for the implementation of activities in startup phase. 4. Plan in advance and enforce the applications of safety regulations and practices. 5. Give careful considerations and enough attention to contractual requirements. 6. Consider the facilities configuration when commissioning systems. 7. Take into consideration the Weather Factors and their impact on performance. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

34 PROGRAM GUIDELINES Planning & Management Guidelines 2 1. Develop a detailed and well-organized plan for the startup phase. 2. It should be clear to all parties that successful startup is always a result of good planning. 3. Carefully define and provide required info. for planning of startup phase. 4. Take into consideration system’s operating requirements & standard practices 5. Make everybody aware of the challenges faced. 6. Do not under estimate challenges faced in the startup phase. 7. Start planning for startup as early as possible. 8. Make sure that the schedule is feasible, reliable, and flexible. 9. Formulate startup schedule to correlate to sys.commissioning sequence. 10. Ample time should be allowed for startup. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

35 PROGRAM GUIDELINES 3 During & Post Construction Guidelines 1. Subsystems should be started up independently. 2. Discriminate between “now” and “later”. 3. Keep documentation current throughout the project’s life cycle and maintain strict version control. 4. Assure availability of permanent utilities when using permanent facilities for construction. 5. Ensure application of value engineering/ management throughout the project. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

36 PROGRAM GUIDELINES 4 Staffing & Training Guidelines 1. Ensure early involvement of Startup and operations personnel into the project. 2. Upper management should be careful in selecting the startup team. 3. Shift teams for startup should be taken into consideration. 4. Ensure that staff training programs are planned in advance. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

37 CONCLUSION It was strongly evident that there is a tangible shortage or lack of information and research on airport projects startup phase locally. This statement was found to be equally true on local and foreign airports. Despite some similarities, in concept, in structuring the startup organizations, no specific and common guidelines on which airports’ startup procedures were based on in these airports. Transition plans were given a significant weight, importance, and handled as an integral part of the startup plan In the case of the studied foreign airports. In the case of the studied local airports it was treated with significantly less importance. Munich International airport hired a German specialized consultant to handle the transition stage. The consultant started to prepare the Munich move more than 1½ years prior to the opening. Beside the transition consultant, 14 different work groups were defined. These work groups had the objective to assure important premises for a smooth transition OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

38 CONCLUSION In the case of local international airports, some regulations were found to dominate the obstacles when planning for startup phase, especially when they are not taken into consideration. Such regulations or obstacles were: Implementation of the lowest bidder concept on the procurement process of materials and parts during startup phase. Denial of the provision of Bulk Visas for the hiring of required foreign personnel for the completion of the startup phase. Denial of the importance in treating startup requirements as a special case which needs to be expedited due to the nature of the startup phase. Denial of the provision and hiring of specialized consultants in temporary bases for required specific tasks during startup phase.     5. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

39 CONCLUSION If no action is taken in response to the increased task uncertainty of a startup, additional resources must be provided. The cost of extending the time allotted for the startup may be the easiest cost to bear. But, it would be less costly to add people and to spend money in ways that would reduce the startup time. Some of the ways in which this is done are to: Add human resources: Additional technical personnel are made available, and extra maintenance people may be kept on as well. Add material resources: Extra spare parts may be kept on hand, along with complete units of critical pieces of equipment. Add money: Budgetary restrictions and controls may be relaxed: procurement procedures may be streamlined and simplified so that operating and technical personnel may quickly order and obtain critically needed materials. If all else fails, the startup will simply take longer to complete, schedules will not be met. Time is the resource of last resort, and the one that requires the least planning and creativity to make available.    6. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

40 CONCLUSION In the case of local international airports, the utilization of experienced personnel within the organization, from other in-Kingdom airports, is not a common practice. Delays, postponement and slippage in the startup schedules result in shortening the lifetime or even voiding the contractor warrantees provided as part of their contractual requirements and deliverables OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

41 RECOMENDATIONS Explore in depth and further study the startup phase procedures and operations of other public projects in the Kingdom of Saudi Arabia. Documentation for startup phase guidelines and procedures to be formatted and saved in proper format i.e. hard copies, electronic copies, etc. and make them accessible to planners and professionals for reference. Develop training courses and workshop sessions on startup phase planning, practices, challenges, etc. for planners and professionals in order to enhance perception and decision making capabilities in this field. Allocate funds to local universities to adapt researches and studies on startup operations and practices in the Kingdom of Saudi Arabia. Develop checklists on startup phase planning and procedures for the use of the government and private sectors projects in the Kingdom of Saudi Arabia. OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS- KSA)  BY OMRAN ZAIN OMRAN

42 OPTIMIZATION OF STARTUP OPERATIONS IN LARGE CONSTRUCTION PROJECTS (INTERNATIONAL AIRPORTS - SAUDI ARABIA) THANK YOU


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