(64d) Managing Front End Design Engineering (FEED) On a Large, Global Project

This paper discusses the development of Front End Engineering Design (FEED) packages for large, offshore oil and gas facilities. Increasingly, these projects are based in a host country such as Malaysia, Nigeria or Angola, but draw on resources from all over the world. The management of FEED activities thus becomes very complex.

Topics that will be discussed include the following:

? The use of engineers and other technical specialists in multiple, world-wide locations can reduce costs but also creates substantial challenges in terms of coordinating work, language communication, and ? above all ? handling the telephone time gaps. If these issues are not properly managed, the cost savings are lost due to increased interface inefficiencies. An example of such inefficiencies occurs if the different team members use different time card systems. ? Modern data base systems for managing the delivery of documents within the FEED team, and to and from the client can increase the speed with such documents are issued, and minimize the confusion that occurs when multiple copies are in circulation. However the data base software often requires considerable (unbudgeted) training for the team members. Moreover, the fact that the team members come from different organizations can create many software interface problems to do with issues such as permissions and firewalls. ? Different cultures on a large task force can lead to misunderstandings. Managers must be very clear as to what they want, when they want it, and what the consequences are if their needs are not met. Moreover, the informal but invaluable ?water cooler? communications that occur when the team members are all in the same place, and all know one another do not occur. ? Governments of host countries, particularly in developing regions, want the project managers to employ and train local engineers and technical specialists. Such work can slow down a project. ? The team members often have to spend considerable time determining which standards they are to follow. Local regulations may apply - but may be difficult to find and interpret. Similarly the team has to understand which industrial standards are to be used (often the choice is between European and American) and how to integrate these with the client's own standards.

In order to address concerns such as those listed above, it is suggested that the project management team pay particular attention to the following issues.

? Allow plenty of time for project ramp-up. Everyone wants to start producing deliverables immediately. This temptation should be avoided; it must be recognized that extra time and funding is needed for activities such as training, sorting out computer interfaces and organizing weekly meetings. The more global the project is, the longer the initial, flat part of the ?S' curve needs to be. ? Allow time for resolving issues such as which time card system is to be used, and for resolving discrepancies that occur when different systems are used at the same time. ? Recognize that all forms of communication will be much slower than when everyone is from the same place. ? Allow plenty of time for quality control, particularly of written deliverables and reports. Although the project language is usually English, it is likely that many of the team members will have considerable trouble with writing reports, philosophies and functional specifications ? management must provide them with plenty of support. ? If the project is based in a developing country extra time and funding needs to be provided for the use of specialist support services.

Overall, projects will continue to become more global, partly due to the cost savings, and partly due to the desire for local governments to create work locally. However, managers must realize that these savings and benefits are not free. Considerable time and funding must be provided to address issues such as those listed above.