Indian Oil Corporation Limited

I
CENTRALIZED AC PLANT INSTALLATON
AT HANSRAJ COLLEGE
(PLANNING AND MONITORING PHASE)
2015
India Oil Corporation Limited
19/July/2015

Indian Oil Corporation Limited 2015
ACKNOWLEDGEMENT
This project, though an individual project, wouldn’t have been possible without the
constant help and guidance of a few individuals whose support has been vital to the
completion of the project.
This project would not have been possible without the support of many people. I wish to
express my gratitude to my supervisor, Mr. V. S. Jain, who was abundantly helpful and
offered invaluable assistance, support and guidance. Deepest gratitude are also due to
the members of the Planning and Monitoring Team, Mr. S. Barman, Mr. Svatantra
Agrawal & Mr. Rohit Kumar, Mr. Tarun Raina, without whose knowledge and
assistance this study would not have been successful.
2

CERTIFICATE
This is to certify that Mr. Pankaj Dev of Hansraj College has successfully completed the
project work titled “Installation of Centralized AC Plant Installation at Hansraj College” at
the Indian Oil Corporation Limited. This project report is the record of authentic work
carried out by him during the period from 8/June/2015 to 19/July/2015 He has worked
under my guidance.
Signature
Mr. V. S. Jain (DGM)
Project Department (Planning and Monitoring Cell)
Indian Oil Corporation Limited
Date:-
3

Table of Contents
1. Executive Summary...................................................................................................
5
2. Objective of Study..................................................................................................... 6
3. Methodology.............................................................................................................. 7
4. Company Overview................................................................................................... 8
5. Major Divisions of IOCL.......................................................................................... 11
6. Business Model of IOCL......................................................................................... 12
7. Organizational Structure……….............................................................................. 14
PROJECT REPORT
8. Project Management…............................................................................................ 16
9. Planning and Scheduling…………………………………………...…........................
18
10. Monitoring and Controlling.................................................................................. 21
11. Work Breakdown Structure..................................................................................22
12. Execution of Methodology…………………………………………………………….25
Bibliography:.............................................................................................................. 26
Webliography:….………………………………………………………………………….. 26
4

Executive Summary
This project seeks to plan and monitor the process of centralized AC at the Hansraj
College. The activities of the project are needed to be planned in sequenced manner,
reflecting the priorities so that it can be executed in most efficient way. And list the tasks
and activities under each task, showing main work elements of the total project by
functions/disciplines/crafts. These lists will form the foundation of the subsequent step
of a more detailed definition of work. The list can be simple, phase-wise, tabular
statement with columns for TASK CODE/TASK DESCRIPTION/DURATIONS
(WORKING DAYS)/ESTIMATED MANDAYS.
5

OBJECTIVES OF THE STUDY
• To get an exposure of the actual working environment within a multi-national.
• To thoroughly understand the planning and monitoring management and various
aspects related to it at Indian Oil.
• To study and analyze all the details of Project Management.
• To understand the benefits of planning and monitoring or scheduling of a project.
6

METHODOLOGY
Project consists of core activities like Engineering, procurement, Construction and
Management. The following are the internationally followed execution methods adopted
for completing the above E, P, C & M activities of the project.
Certain projects involving fuel quality up-gradation in line with mandatory
environmental/statutory stipulations of government, like latest Euro/BS norms for the
auto-fuels, are undertaken without regard to project economics. In such projects,
completion time is important to meet the deadlines drawn up by the government & the
project is schedule driven.
For other capital projects required to enhance business profitability, cost economics
(IRR/NPV) plays a major role. Projects whose IRR is above the hurdle rate (defined by
IOCL for the Projects in different fields from time to time) & meets project criteria/norms
are approved by Board, stage wise.
Project Methodologies are:-
• EPCM (Conventional)
• LSTK(Lump Sum Turn Key)/ EPCC
• Cost Plus or Open Book Estimate(OBE)
• Cost pLus (OBE Convertible to LSTK)
• BPP/BOOT (Build Own Operate Transfer)
• LEPCC (Licensor EPCC)
7

COMPANY OVERVIEW
INDIAN OIL CORPORATION LTD
IOC (Indian Oil Corporation) was formed in 1964 as the result of merger of Indian Oil
Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).
Indian Oil Corporation Ltd. is currently India's largest company by sales with a turnover
of Rs. 2 441 329 600, and profit of Rs. 25 994 000 for fiscal 2009.
Indian Oil Corporation Ltd. is the highest ranked Indian company in the prestigious
Fortune ‘Global 500’. It is ranked at 109th position in 2010. It is also the 20th largest
petroleum company in the world.
Indian Oil and its subsidiaries today accounts for 49% petroleum products market share
in India.
Indian Oil group has sold 59.29mn tons of Petroleum including 1.74mn tons of natural
gas in the domestic market and exported 3.33mn tons in the yr 2008-09.
IOCL GROUP
IOCL Group consists of Indian Oil Corporation Ltd. and the following subsidiaries:
• Lanka IOC Ltd
• Indian Oil (Mauritius) Ltd.
• IOCL Middle East FZE
• Indian Oil Technologies Ltd.
• Chennai Petroleum Corporation Ltd. (CPCL)
• Bongaigaon Refinery & Petrochemicals Ltd (BRPL)
VISION OF IOCL
A major diversified, transnational, integrated energy company, with national leadership
and a strong environment conscience, playing a national role in oil security & public
distribution.
8

MISSION OF IOCL
IOCL has the following mission:
• To achieve international standards of excellence in all aspects of energy and
diversified business with focus on customer delight through value of products and
services and cost reduction.
• To maximize creation of wealth, value and satisfaction for the stakeholders.
• To attain leadership in developing, adopting and assimilating state-of- the-art
technology for competitive advantage.
• To provide technology and services through sustained Research and
Development.
• To foster a culture of participation and innovation for employee growth and
contribution.
• To cultivate high standards of business ethics and Total Quality Management for
a strong corporate identity and brand equity.
• To help enrich the quality of life of the community and preserve ecological
balance and heritage through a strong environment conscience.
VALUES OF IOCL
Values exist in all organizations and are an integral part of any it. Indian Oil nurtures a
set of core values:
• CARE
• INNOVATION
• PASSION
• TRUST
9

OBJECTIVES OF INDIAN OIL
IOCL has defined its objectives for succeeding in its mission. These objectives are:
• To serve the national interests in oil and related sectors in accordance and
consistent with Government policies.
• To ensure maintenance of continuous and smooth supplies of petroleum
products by way of crude oil refining, transportation and marketing activities and
to provide appropriate assistance to consumers to conserve and use petroleum
products efficiently.
• To enhance the country's self-sufficiency in crude oil refining and build expertise
in laying of crude oil and petroleum product pipelines.
• To further enhance marketing infrastructure and reseller network for providing
assured service to customers throughout the country.
• To create a strong research & development base in refinery processes, product
formulations, pipeline transportation and alternative fuels with a view to
minimizing/eliminating imports and to have next generation products.
• To optimize utilization of refining capacity and maximize distillate yield and gross
refining margin.
• To maximize utilization of the existing facilities for improving efficiency and
increasing productivity.
• To minimize fuel consumption and hydrocarbon loss in refineries and stock loss
in marketing operations to effect energy conservation.
• To earn a reasonable rate of return on investment.
• To avail of all viable opportunities, both national and global, arising out of the
Government of India’s policy of liberalization and reforms.
• To achieve higher growth through mergers, acquisitions, integration and
diversification by harnessing new business opportunities in oil exploration &
production, petrochemicals, natural gas and downstream opportunities overseas.
• To inculcate strong ‘core values’ among the employees and continuously update
skill sets for full exploitation of the new business opportunities.
10

• To develop operational synergies with subsidiaries and joint ventures and
continuously engage across the hydrocarbon value chain for the benefit of
society at large.
Major Divisions of IOCL
Indian Oil Corporation Limited (Indian Oil) owns and operates a network of crude oil and
petroleum product pipeline in India. It has two divisions: Refineries Division and
Marketing Division. The Refineries Division is focused on managing the public sector
refineries and the Marketing Division is focused on distribution not only the entire
production of public sector refineries but also the deficit products imported. It is
organized in two segments: sale of petroleum products, and other businesses, which
comprises sale of imported crude oil, sale of gas, petrochemicals, explosives and
cryogenics, wind mill power generation and oil and gas exploration activities jointly
undertaken in the form of unincorporated joint ventures. The Digboi Refinery of Assam
11
IOCL

Oil Division processed 0.623 million metric tons (MMT) of crude oil during the year. The
Division sold about 1.067 MMT of products. IBP Division comprises the explosives and
cryogenics business.
BUSINESS MODEL OF IOCL
IOCL has its presence in all spheres of downstream operations.
12

PRODUCTS OFFERED BY IOC
Indian Oil is not only the largest commercial enterprise in the country it is the flagship
corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is
widely recognized as India’s dominant energy brand and customers perceive Indian Oil
as a reliable symbol for high quality products and services. Major Products of IOCL are:
• Auto LPG
• Aviation Turbine Fuel
• Bitumen
• High Speed Diesel
• Industrial Fuels
• Liquefied Petroleum Gas
• Lubricants & Greases
• Marine Fuels
• MS Gasoline
• Petrochemicals
• Crude Oil
• Superior Kerosene Oil
13

ORGANIZATIONAL STRUCTURE
The whole of Indian Oil Corporation (IOC) works under Corporate Office located at New
Delhi. It follows hierarchical structure where the decision flows from top to bottom and
the data flows from bottom to top. Under the corporate office there are 5 divisions
namely- Pipelines, Refineries, R&D, Marketing & Assam oil division. The Marketing
division located at Mumbai co-ordinates with the regional offices i.e. North, South, East
& West Region office, the other Divisional Offices & SBI for decisions regarding
investments. The Regional offices co-ordinates with respective state office that in turn
co ordinates with respective location offices.
14
Corporate Office
New Delhi
R&D
Division
Faridabad
Pipelines
Division
Noi
da
Marketing
Division
Mumbai
Refineries
Division
New Delhi
Assam Oil
Division
NR
New Delhi
ER
Kolkata
WR
Mumbai
SR
Chennai
Respective State Offices

PROJECT REPORT
Centralized AC Plant
Installation at Hansraj
College
15
Respective Location Offices

Project Management
What is it?
Project management is the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals in scientific or
daily problems. A project is a temporary endeavor designed to produce a unique
product, service or result with a defined beginning and end (usually time-constrained,
and often constrained by funding or deliverables) undertaken to meet unique goals and
objectives, typically to bring about beneficial change or added value. The temporary
nature of projects stands in contrast with business as usual (or operations), which are
repetitive, permanent, or semi-permanent functional activities to produce products or
services. In practice, the management of these two systems is often quite different, and
as such requires the development of distinct technical skills and management
strategies.
The primary challenge of project management is to achieve all of the project goals and
objectives while honoring the preconceived constraints. The primary constraints are
scope, time, quality and budget. The secondary — and more ambitious — challenge is
to optimize the allocation of necessary inputs and integrate them to meet pre-defined
objectives.
TYPES OF PROJECT
1.) Green Field Projects: All grass root projects, new refining & petrochemical
projects at a new location where all the infrastructure need to be built afresh are
called green field projects.
2.) Brown Field Projects: Expansion of existing refineries/petrochemical units is
termed as brown field projects. In this case, some infrastructure like land &
utilities like water, steam, power etc is already available at project site (within the
existing boundary).
16

3.) Revamp Projects: Debottlenecking/capacity enhancement of existing petroleum
refinery/petrochemical complexes are called revamp projects. Sometimes
existing units are to be modified to meet statutory norms issued by the Govt.
4.) Diversification Projects: Projects no related to the core acivity of the company
may be termed as diversification projects. These may also include joint venture
projects like LVs in the field of nuclear energy, wind energy, solar energy etc.
PROJECT PROCESS
Traditionally, project management includes a number of elements: four to five process
groups, and a control system. Regardless of the methodology or terminology used, the
same basic project management processes will be used. Major process groups
generally include:
• Initiation
• Planning
• Production or execution
• Monitoring and controlling
• Closing
Here in this project report we are discussing only PLANNING AND MONITORING part.
PREPARATION OF PROJECT SCHEDULE
Preparation of project schedule is an iterative process. During the preparation of
schedule, as a first step, al the precise and measurable activities shall be listed. For a
complex project defining detailed sub-schedule will show an adequate level of detail for
each of the tasks.
Interdependencies/Associations of the tasks shall be clearly defined.
Estimate the time schedule for each of the tasks. Time estimates can be best made
from earlier project experiences. Availability of adequate skilled resources, expected
receipt dates of LLIs, work area restriction, local social/political atmosphere, local
weather conditions, logistics etc may be considered while estimating the project
completion time. Good scheduling makes allowance for risks identified.
17

Prepare network diagram like PERT/CPM for the project and identify the critical path
which is the longest path through the project and dictates the project completion period.
PLANNING AND SCHEDULING
The project is planned to an appropriate level of detail (see example of a flow-
chart on page 18). The main purpose is to plan time, cost and resources adequately to
estimate the work needed and to effectively manage risk during project execution. As
with the Initiation process group, a failure to adequately plan greatly reduces the
project's chances of successfully accomplishing its goals.
Project planning generally consists of
• determining how to plan (e.g. by level of detail or Rolling Wave planning);
• developing the scope statement;
• selecting the planning team;
• identifying deliverables and creating the work breakdown structure;
• identifying the activities needed to complete those deliverables and networking
the activities in their logical sequence;
• estimating the resource requirements for the activities;
• estimating time and cost for activities;
• developing the schedule;
• developing the budget;
• risk planning;
• gaining formal approval to begin work.
Additional processes, such as planning for communications and for scope management,
identifying roles and responsibilities, determining what to purchase for the project and
holding a kick-off meeting are also generally advisable.
18

For new product development projects, conceptual design of the operation of the final
product may be performed concurrent with the project planning activities, and may help
to inform the planning team when identifying deliverables and planning activities.
19

20

Methods of progress measurement are based on below parameters:-
1.) Concept of roll-on-off planning as per WBS(Work Breakdown Structure)
2.) Weight factor based on effort (man-hour or cost)
3.) Milestones with prefixed % progress
Progress Measurement is derived on the technique of roll-on-off where effort/cost
based weight factors are assigned to each activity. Activities are broken down into
various milestones pertaining to the activity. Progress is measured against each activity
at various level of WBS and then rolled up to task, discipline, phase/area and project
level.
21

MONITORING AND CONTROLLING
Monitoring and controlling consists of those processes performed to observe project
execution so that potential problems can be identified in a timely manner and corrective
action can be taken, when necessary, to control the execution of the project. The key
benefit is that project performance is observed and measured regularly to identify
variances from the project management plan.
Monitoring and controlling includes:
• Measuring the ongoing project activities ('where we are');
• Monitoring the project variables (cost, effort, scope, etc.) against the project
management plan and the project performance baseline (where we should be);
• Identify corrective actions to address issues and risks properly (How can we get
on track again);
• Influencing the factors that could circumvent integrated change control so only
approved changes are implemented.
In multi-phase projects, the monitoring and control process also provides feedback
between project phases, in order to implement corrective or preventive actions to bring
the project into compliance with the project management plan.
Project maintenance is an ongoing process, and it includes:
• Continuing support of end-users
• Correction of errors
• Updates of the software over time
22

WORK BREAKDOWN STRUCTURE
WBS subdivides the project into manageable work elements for scheduling, tracking
and reporting. WBS will be configured based on complexity and execution strategy of
the project. Hence, WBS will be developed to accurately reflect the project scope of
work.
The work break down structure and basis for assigning weight factors at various levels
are indicated below
Level Description Basis of Weight Factor
Level 0 Installation of Centralized
AC at Hansraj College
100%
Level 1 Engineering,
Tendering, Ordering,
Manufacturing & Delivery,
Construction &
Commissioning
Effort/Cost
Level 2 Discipline/Work/Contract Effort/Cost
Level 3 Deliverable/Work Item Effort/Cost
Level 4 Milestones(RFQ, Bid
receipt, PBO
Recommendation etc.)
Efforts(%)
23

STIPULATIONS FOR TARGETED OVERALL PROJECT SCHEDULE
1.) Zero date for the project is reckoned as date of project approval, 27-Jun-15.
2.) Target Project mechanical Completion including pre-commissioning is 10-Dec-15
and commissioning is 15-Dec-15.
3.) Project will be executed on Conventional Mode.
4.) The weightage of various activities and sub-activities in L-0 to L-4, are based on
various Planning packages prepared by previous Projects.
5.) Ordering cycle has been considered as 10 days for Equipments (e.g.
evaporators).
6.) The entire scheduling has been done using Microsoft Excel software for
monitoring the progress.
WBS: LEVEL 0 (Project)
Centralized AC Plant Installation (100%)
WBS: LEVEL 1 (Project)
Level 1 has been produced in this report in form of bar chart of overall project.
WBS: LEVEL 2 (Function)
The following functions have been considered
- Engineering
- Tendering
- Ordering
- Manufacturing & Delivery
- Construction
- Commissioning
24

WBS: LEVEL 3 (Discipline/Contractor Wise)
This level comprises of various discipline for each function as given below
LEVEL 2 (Function) LEVEL 3 (Discipline)
Engineering Piping, Package Equipment, Rotating
Equipment, Electrical, Instrumentation etc.
Ordering Discipline as applicable
Manufacturing & Delivery Discipline as applicable
Construction Civil, Structural, Piping, Electrical,
Instrumentation etc.
WBS: LEVEL 4(Intermediate activities/Deliverables/Work items)
This level comprises of various discipline-wise deliverables covered in each function.
The weight factor at this level is based on efforts or cost as applicable at the function
level.
In case of construction, the workload shall be identified to various work items like
Concreting, Piping Welding etc.
Deliverables may be added / deleted during the course of execution of the Project which
should require some changes in the weightages at deliverable level.
Execution of Methodology
25

In this project the Conventional Mode is used, in which design engineering,
procurement, construction supervision is carried out by IOCL, Construction by discipline
wise contractors & Commissioning by owner.
Firstly the DFR (Detailed Feasible Report) is approved by the board. That includes what
are the objective, Scope, benefits, cost, execution methodology and project schedule to
be derived from the implementation.
On the basis of project scheduled as approved in DFR, WBS is prepared against which
the activities and sub-activities of the project are listed and a Gant chart is prepared and
man-hours, costs are estimated for each activity. On the basis of these value project’s
progress schedule is prepared for Monthly Progress Measurement.
And the CPM network diagram is used to calculate the critical path of the project. Now,
we can see which activities need a more attention so it’s not get delayed otherwise the
entire project will be delayed.
BIBLIOGRAPHY
26

(Planning and monitoring Cell)
Mr. V. S. Jain
Mr. S. Barman
Mr. Svatantra Kumar Agrawal
Mr. Rohit Kumar
Mr. Tarun Raina
Mr. Vivek Sharma
Mr.Dinesh Chandra
WEBLIOGRAPHY
• http://www.iocl.com/aboutus.aspx
• http://www.iocl.com/products.aspx
• http://www.iocl.com/services.aspx
• http://www.iocl.com/MediaCenter/News.aspx?NewsID=2802
27

Indian Oil Corporation Limited

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