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EPCM Project Implementation method
4ePCMTM - Interactive Project Management
Project implementation method

• Selecting the right implementation
    method is crucial to meet cost and
    schedule targets of the project

• Regardless of the implementation
    method same work has to be done

• Selection of the implementation
    method determines the roles,
    responsibilities and liabilities of the
    project parties in performing,
    supervising and approving
                                              •   Common language, standard
• Interactive work is a necessity to              scope definitions, transparency
    reduce the investment costs                   and clarity are needed


      February, 2009
2     4ePCM presentation
Different implementation methods

    OB            = Open Book
    ESS           = Extended Scope of Supply
    EPS           = Engineering   -Procurement   -Supply
    EPCM = Engineering -Procurement -Construction Management
    EPC           = Engineering   -Procurement   -Construction
    BOO           = Build         -Own           -Operate
    BOOT          = Build         -Own           -Operate        -Transfer
    BOT           = Build         -Own           -Transfer
    DB            = Design        -Build
    DBO           = Design        -Build         -Operate
    DBFO          = Design        -Build         -Finance        -Operate
    FBO           = Finance       -Build         -Operate
    FBOM          = Finance       -Build         -Operate        -Maintain
    …….




      February, 2009
3     4ePCM presentation
Questions to be clarified

Roles of the engineering company / client
• in performing
• in supervising
• in approving / signing

Responsibilities
• who will perform / which job

Liabilities
• who bears the consequences for
          budget overrun / underrun
     –
          time schedule overrun / underrun
     –
          design workability in practice
     –
          suppliers’ and contractors’ performance / non-performance
     –
          contract terms such as payments, warranties etc
     –
          health, safety, environment
     –
          permits
     –



    February, 2009
4   4ePCM presentation
Project lifecycle and EPCM

 Business                               Investment        Final                                 Take-over
   idea                                  proposal       go-ahead                                  date




      Development                                               Implementation                              Production

   Product and       Feasibility      Pre-         Basic
  Market analysis      study       engineering   engineering




                                                               Engineering

                                                               Procurement

                                                                 Construction

                                                                                  Commissioning

                                                                                         Start-up

                                                                                                              Operational
                                                                   Preparation for production
                                                                                                              excellence
Back

        February, 2009
  5     4ePCM presentation
4ePCMTM concept
4ePCMTM – in nutshell
Customer-oriented interactive project management procedure

• Pöyry has collected its cumulative
    project execution experience and
    best practices into a unique
    4ePCMTM concept

• Use four-level database build
    around sets of
     – Functions
     – Processes
                                           • 4ePCMTM brings
     – Tasks
                                              – structure
     – Deliverables
                                              – clarity
                                              – efficiency
• By using         4ePCMTM
                        Scope of              – transparency
    Services definitions are transparent    to any project and it is designed
    and clear and can be assigned to a      especially for the implementation of
    specific party.                         EPCM projects


      February, 2009
7     4ePCM presentation
4ePCMTM The Idea – From marketing to implementation
Owner Interface

      Presentation of          Discussion and     Technical and              Contract                 Assure
    4ePCMTM Process              Interactive       Commercial                  and               all targets are
                                  Meeting           Proposal                Appendices              achieved


                                                                                                       Project
                                                                  Scope further
                                                Proposal
            Project basic                                                            Contract
                                 Request for
                                                                                                       Closure
                                                                    defined
                                                presented
                info                                                                  signed
                                  Proposal




                                    Sales
        Marketing                                    Proposal             Negotiations          Implementation


                                                                       Updating and Final
                             Concrete Project    Proposal
    Future                                                                                      Implementation by
                                                                       scope definition
                             • Functions        • Scope of Work
    developments                                                                                   4ePCMTM
                                                                       • Functions
                             • Processes        • Scope of Services
    • Functions
                                                                                                     Process
                                                                       • Processes
                             • Tasks            • Organization
    • Processes
                                                                       • Tasks
                             • Deliverables     • Time Schedule
                                                                       • Deliverables
                                                • Key Tasks
                                                • Job Descriptions
                                                • key deliverables
                                                • Price
                                                • Travel Charges
PÖYRY Interface                                 • Reimbursables
                                                • CV’s
                                                • References
        February, 2009
8       4ePCM presentation
4ePCMTM– Project flow

                                                                  Implementation
                         MAIN PROJECT FUNCTIONS

                                                                 These main Functions
                            PROJECT SUPERVISION
                                                                cover the whole sphere
                                                                    of responsibilities
                         PROJECT MANAGEMENT (EPCM)              required in any project–
                                                                  irrespective of who
                                                                       does them.
                          ENGINEERING MANAGEMENT

                         PROCUREMENT MANAGEMENT

                         CONSTRUCTION MANAGEMENT

                         COMMISSIONING MANAGEMENT

                                          PREPARATION FOR
       PROJECT CONTROL
                                             OPERATION
                                         HEALTH, SAFETY AND
     QUALITY ASSURANCE
                                            ENVIRONMENT
    SECURITY MANAGEMENT                 PERMITTING ASSISTANCE

    February, 2009
9   4ePCM presentation
4ePCMTM– Integration of Knowledge
example: Engineering Management
                                                 FUNCTIONS
                  MAIN PROJECT FUNCTIONS
                                                             PROCESSES
                      PROJECT SUPERVISION

                 PROJECT MANAGEMENT (EPCM)

                   ENGINEERING MANAGEMENT

                  PROCUREMENT MANAGEMENT
                                                                    TASKS
                  CONSTRUCTION MANAGEMENT

                  COMMISSIONING MANAGEMENT

                                    PREPARATION FOR
       PROJECT CONTROL
                                       OPERATION
                                   HEALTH, SAFETY AND
      QUALITY ASSURANCE
                                      ENVIRONMENT
     SECURITY MANAGEMENT          PERMITTING ASSISTANCE




                                                                         DELIVERABLES




       February, 2009
10     4ePCM presentation
4ePCMTM– Integration of Knowledge
Example: Procurement Management
                                                  FUNCTIONS
                  MAIN PROJECT FUNCTIONS

                      PROJECT SUPERVISION
                                                              PROCESSES
                 PROJECT MANAGEMENT (EPCM)

                   ENGINEERING MANAGEMENT

                  PROCUREMENT MANAGEMENT

                                                                TASKS
                  CONSTRUCTION MANAGEMENT

                  COMMISSIONING MANAGEMENT

                                    PREPARATION FOR
       PROJECT CONTROL
                                       OPERATION
                                                                        DELIVERABLES
                                   HEALTH, SAFETY AND
      QUALITY ASSURANCE
                                      ENVIRONMENT
     SECURITY MANAGEMENT          PERMITTING ASSISTANCE




        February, 2009
11      4ePCM presentation
4ePCMTM– Integration of Knowledge
Example: Construction Management
                                                 FUNCTIONS
                  MAIN PROJECT FUNCTIONS
                                                             PROCESSES
                      PROJECT SUPERVISION

                 PROJECT MANAGEMENT (EPCM)

                   ENGINEERING MANAGEMENT

                  PROCUREMENT MANAGEMENT
                                                                   TASKS
                  CONSTRUCTION MANAGEMENT

                  COMMISSIONING MANAGEMENT

                                    PREPARATION FOR
       PROJECT CONTROL
                                       OPERATION
                                   HEALTH, SAFETY AND
      QUALITY ASSURANCE
                                      ENVIRONMENT
     SECURITY MANAGEMENT          PERMITTING ASSISTANCE




                                                                         DELIVERABLES




       February, 2009
12     4ePCM presentation
4ePCMTM– the Four levels of electronic database


                          Standard text
 12 Functions             for Scope of
                            Services


                          Standard text
 60 Processes             for Scope of
                            Services


                          Standard text
 300 Tasks                for Scope of
                            Services



 1000 Deliverables




     February, 2009
13   4ePCM presentation
4ePCMTM– Integration of Knowledge

                                                                   Project Owner
                               Pöyry Supervisor



                                                  Project Staff                  Mill / Plant Staff

                                                                          EPCM

                                                                   Project Management

                                                                                                                               Preparation for
                                                                                                                            Mill / Plant Operation
                                                                                      Quality
                                                        Security
                                                                                    Management
                                                       Management

                                                     Health, Safety and            Permitting and
                                                       Environment               approval Assistance




                                                                                               Construction Management   Commissioning Management
     Project Control              Engineering Management        Procurement Management




                                                                           300 Tasks                   1000 Deliverables
            12 Functions                     60 Processes



          February, 2009
14        4ePCM presentation
Why 4ePCMTM ?

• Clarity, predictability and control

• Integrated processes and methods
     throughout the project

• Detailed service scope definition

• Project guidelines development

• Transparent alignment of project
     scope and expectations between
                                        • “One-stop-shopping”
     project parties

                                        • Ready-to-use templates and tools
• Faster project implementation by
     minimising the lead times of the
     various project phases


       February, 2009
15     4ePCM presentation
4ePCMTM related unique productus
for critical project services




     February, 2009
16   4ePCM presentation
Pöyry offers effective Engineering, Procurement and Construction
             Management service for Chemical Process Industry
                    using its proprietary 4ePCMTM concept




     February, 2009
17   4ePCM presentation

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4epcm

  • 1. EPCM Project Implementation method 4ePCMTM - Interactive Project Management
  • 2. Project implementation method • Selecting the right implementation method is crucial to meet cost and schedule targets of the project • Regardless of the implementation method same work has to be done • Selection of the implementation method determines the roles, responsibilities and liabilities of the project parties in performing, supervising and approving • Common language, standard • Interactive work is a necessity to scope definitions, transparency reduce the investment costs and clarity are needed February, 2009 2 4ePCM presentation
  • 3. Different implementation methods OB = Open Book ESS = Extended Scope of Supply EPS = Engineering -Procurement -Supply EPCM = Engineering -Procurement -Construction Management EPC = Engineering -Procurement -Construction BOO = Build -Own -Operate BOOT = Build -Own -Operate -Transfer BOT = Build -Own -Transfer DB = Design -Build DBO = Design -Build -Operate DBFO = Design -Build -Finance -Operate FBO = Finance -Build -Operate FBOM = Finance -Build -Operate -Maintain ……. February, 2009 3 4ePCM presentation
  • 4. Questions to be clarified Roles of the engineering company / client • in performing • in supervising • in approving / signing Responsibilities • who will perform / which job Liabilities • who bears the consequences for budget overrun / underrun – time schedule overrun / underrun – design workability in practice – suppliers’ and contractors’ performance / non-performance – contract terms such as payments, warranties etc – health, safety, environment – permits – February, 2009 4 4ePCM presentation
  • 5. Project lifecycle and EPCM Business Investment Final Take-over idea proposal go-ahead date Development Implementation Production Product and Feasibility Pre- Basic Market analysis study engineering engineering Engineering Procurement Construction Commissioning Start-up Operational Preparation for production excellence Back February, 2009 5 4ePCM presentation
  • 7. 4ePCMTM – in nutshell Customer-oriented interactive project management procedure • Pöyry has collected its cumulative project execution experience and best practices into a unique 4ePCMTM concept • Use four-level database build around sets of – Functions – Processes • 4ePCMTM brings – Tasks – structure – Deliverables – clarity – efficiency • By using 4ePCMTM Scope of – transparency Services definitions are transparent to any project and it is designed and clear and can be assigned to a especially for the implementation of specific party. EPCM projects February, 2009 7 4ePCM presentation
  • 8. 4ePCMTM The Idea – From marketing to implementation Owner Interface Presentation of Discussion and Technical and Contract Assure 4ePCMTM Process Interactive Commercial and all targets are Meeting Proposal Appendices achieved Project Scope further Proposal Project basic Contract Request for Closure defined presented info signed Proposal Sales Marketing Proposal Negotiations Implementation Updating and Final Concrete Project Proposal Future Implementation by scope definition • Functions • Scope of Work developments 4ePCMTM • Functions • Processes • Scope of Services • Functions Process • Processes • Tasks • Organization • Processes • Tasks • Deliverables • Time Schedule • Deliverables • Key Tasks • Job Descriptions • key deliverables • Price • Travel Charges PÖYRY Interface • Reimbursables • CV’s • References February, 2009 8 4ePCM presentation
  • 9. 4ePCMTM– Project flow Implementation MAIN PROJECT FUNCTIONS These main Functions PROJECT SUPERVISION cover the whole sphere of responsibilities PROJECT MANAGEMENT (EPCM) required in any project– irrespective of who does them. ENGINEERING MANAGEMENT PROCUREMENT MANAGEMENT CONSTRUCTION MANAGEMENT COMMISSIONING MANAGEMENT PREPARATION FOR PROJECT CONTROL OPERATION HEALTH, SAFETY AND QUALITY ASSURANCE ENVIRONMENT SECURITY MANAGEMENT PERMITTING ASSISTANCE February, 2009 9 4ePCM presentation
  • 10. 4ePCMTM– Integration of Knowledge example: Engineering Management FUNCTIONS MAIN PROJECT FUNCTIONS PROCESSES PROJECT SUPERVISION PROJECT MANAGEMENT (EPCM) ENGINEERING MANAGEMENT PROCUREMENT MANAGEMENT TASKS CONSTRUCTION MANAGEMENT COMMISSIONING MANAGEMENT PREPARATION FOR PROJECT CONTROL OPERATION HEALTH, SAFETY AND QUALITY ASSURANCE ENVIRONMENT SECURITY MANAGEMENT PERMITTING ASSISTANCE DELIVERABLES February, 2009 10 4ePCM presentation
  • 11. 4ePCMTM– Integration of Knowledge Example: Procurement Management FUNCTIONS MAIN PROJECT FUNCTIONS PROJECT SUPERVISION PROCESSES PROJECT MANAGEMENT (EPCM) ENGINEERING MANAGEMENT PROCUREMENT MANAGEMENT TASKS CONSTRUCTION MANAGEMENT COMMISSIONING MANAGEMENT PREPARATION FOR PROJECT CONTROL OPERATION DELIVERABLES HEALTH, SAFETY AND QUALITY ASSURANCE ENVIRONMENT SECURITY MANAGEMENT PERMITTING ASSISTANCE February, 2009 11 4ePCM presentation
  • 12. 4ePCMTM– Integration of Knowledge Example: Construction Management FUNCTIONS MAIN PROJECT FUNCTIONS PROCESSES PROJECT SUPERVISION PROJECT MANAGEMENT (EPCM) ENGINEERING MANAGEMENT PROCUREMENT MANAGEMENT TASKS CONSTRUCTION MANAGEMENT COMMISSIONING MANAGEMENT PREPARATION FOR PROJECT CONTROL OPERATION HEALTH, SAFETY AND QUALITY ASSURANCE ENVIRONMENT SECURITY MANAGEMENT PERMITTING ASSISTANCE DELIVERABLES February, 2009 12 4ePCM presentation
  • 13. 4ePCMTM– the Four levels of electronic database Standard text 12 Functions for Scope of Services Standard text 60 Processes for Scope of Services Standard text 300 Tasks for Scope of Services 1000 Deliverables February, 2009 13 4ePCM presentation
  • 14. 4ePCMTM– Integration of Knowledge Project Owner Pöyry Supervisor Project Staff Mill / Plant Staff EPCM Project Management Preparation for Mill / Plant Operation Quality Security Management Management Health, Safety and Permitting and Environment approval Assistance Construction Management Commissioning Management Project Control Engineering Management Procurement Management 300 Tasks 1000 Deliverables 12 Functions 60 Processes February, 2009 14 4ePCM presentation
  • 15. Why 4ePCMTM ? • Clarity, predictability and control • Integrated processes and methods throughout the project • Detailed service scope definition • Project guidelines development • Transparent alignment of project scope and expectations between • “One-stop-shopping” project parties • Ready-to-use templates and tools • Faster project implementation by minimising the lead times of the various project phases February, 2009 15 4ePCM presentation
  • 16. 4ePCMTM related unique productus for critical project services February, 2009 16 4ePCM presentation
  • 17. Pöyry offers effective Engineering, Procurement and Construction Management service for Chemical Process Industry using its proprietary 4ePCMTM concept February, 2009 17 4ePCM presentation