Design and Engineering for Steel Project...

Design and Engineering for Steel Project Design and engineering activities are most critical for a steel project. They start at the time of the initiation of the project and continue for the whole life cycle of the project i.e. till the project is completed and handed over for operation. Further, nature of the design and engineering activities undergo changes as the steel project moves forward on its path of progress. Design and engineering consists of the task of translating a set of functional requirements of the project into a full set of specifications and drawings providing the details needed. It involves a variety of special fields which include (i) process engineering, (ii) civil engineering, (iii) structural engineering, (iv) mechanical engineering, (v) electrical engineering, (vi) fluid engineering, (vii) instrumentation and control engineering, (viii) automation and control activities, (ix) geo-technical engineering, and (x) environmental and safety engineering etc. In a steel project, whether it is a green field or a brown field, design and engineering is the most essential activity, since no other activity can take place without it. In fact, all the project activities have very high dependence on the design and engineering. As an example, the plant and equipment are procured based on technical specifications determined during project engineering. Similarly the erection of plant and equipment is carried out as per erection drawings. During design and engineering, it is necessary to take regulatory authorities approval on certain categories of drawing and documents. These approvals are to be taken well in time so that further engineering work can proceed without fear of it becoming redundant in case the regulatory authorities seek major modification of drawing and documents before according the approval. During design and engineering, a very large amount of information is handled. The type...

Steel Project and Phases in its life cycle...

Steel Project and Phases in its life cycle Steel project consists of activities through which a steel plant is conceptualize, designed, constructed and handed over for operation for the production of steel products. Steel project being a large scale in nature requires considerable time period as well as funds for its execution. Further, steel project is normally driven by the triple constraints which represent the balance of time, resources (human and otherwise), and technical performance (quality). Every steel project is unique in nature. This is because one steel project differs from other steel project with respect to its composition and the nature of the triple constraints. Also, steel project does not involve repetitive processes which are very common with the operation of the steel plant. Time scale of a steel project is well defined and it has a clear specified start and end date within which the project is to be completed and handed over for its operations. Steel project has an approved budget and the project is required to be completed within the allocated level of financial resources. Other resources needed for the project execution such as equipment and materials as well as human resources are also usually limited. Steel project also involves an element of risk. It has to overcome several uncertainties as it moves forward during its execution. Many of these uncertainties are caused by external factors and cannot be foreseen. The uncertainties generally result into disruption in the process of project planning as well as in the execution of the project. Every steel project has a life cycle. It starts with the initiation of the project and ends with the handing over of the plant for operation. There are some of the project activities, which extend beyond the handing over...

Project Planning in a Steel Project...

Project Planning in a Steel Project A steel project is a series of activities which takes place over a pre-arranged period of time to achieve a specified aim of commissioning of the project. The activities of steel project are usually one time activities which are not to be repeated in near future. Steel project activities differ from plant operation which consists mostly of routine activities. For achieving the specified aim, it is essential that project activities are properly and systematically planned. Project planning is done to increase the likelihood that the project will be implemented efficiently, effectively and successfully. Also, it is very much necessary that required time, resources, and efforts are provided as well used for the preparation of the project plan since a defective plan can lead the project to a situation which becomes out of control of the project team. A project plan is a formal, approved document of the project which guides the project execution and is required for the management and control of the project. It forms the basis for all the actions which are required to be taken by the project team for the implementation of the project. The planning document is not of permanent nature since it is necessary to continuously update it as the work of the project progresses. Project planning is important since (i) it guides the project team in its activities, (ii) it helps the project team to remain on track while progressing on work, (iii) It helps in focused monitoring of the work progress, (iv) it helps in the effective use of the resources, and (v) it creates confidence in everyone connected with the project that the project team by following the plans is on right course towards achievement of the results. The...

Project Monitoring

Project Monitoring Project monitoring is an integral part of the project management. It provides understanding of the progress of the project so that appropriate corrective actions can be taken when the performance deviates significantly from the planned path. It consists of regular systematic collection and analysis of information to track the progress of the project implementation against pre-set targets and objectives. It is an important management tool which, if used properly, provides continuous feedback on the project implementation progress as well assists in the identification of potential successes and constraints to facilitate timely decisions. Effective monitoring of the project is a critical element of good project management. It supports informed and timely decision making by the management and provides accountability for achieving results. It is a key part of project cycle management. It is to be built into the project at the planning stage. It is not an ‘add on’ tool which can be used during mid-way of the project implementation. On the other hand, it is to be woven throughout the project. Project monitoring clarifies project objectives, links activities and their resources to objectives, translates objectives into performance indicators and sets targets, routinely collects data on these indicators, compares actual results with targets, and reports progress to the management and alerts the management about the problems which frequently gets cropped up during the implementation of the project. It provides information to the management whether the project is proceeding as per schedule relative to the targets or there is time over run in the project implementation. It also focuses, in particular, on the efficiency and the use of resources during the project implementation. It provides support to the management in its efforts to complete the project in time and within the budget. Project monitoring...

Cost Benefit Analysis...

Cost Benefit Analysis Cost benefit analysis (CBA) is a tool which is used for the determination of the worth of a project, programme or policy. Its principles and practice are well established and widely used. Organizational management normally uses this tool to appraise a project before taking an investment decision. The decision to conduct a CBA for the project alternatives and the manner in which it is to be conducted is usually taken since it helps the management in making judgments and appraising available options. CBA is a systematic approach for the estimation of the strengths and weaknesses of alternatives and is used to determine options which provide the best approach to achieve benefits from the project. It is the comparison of costs and benefits of the project to decide whether it can be undertaken. In CBA both the tangible and intangible costs as well as tangible and intangible benefits are considered. CBA is a term that refers both to (i) a formal discipline used to help appraise, or assess, the case for a project, which itself is a process known as project appraisal, and (ii) an informal approach to making decisions. Under both definitions the process involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of the project or its alternatives in order to choose the best option. The idea of this economic accounting originated with Jules Dupuit, a French engineer whose 1848 article is still worth reading. The British economist, Alfred Marshall, formulated some of the formal concepts which are at the foundation of CBA. But the practical development of CBA came in 1936 when the regulatory act required US Corps of Engineers to take up only those projects for the improvement of the waterway system...

Project Management in for a Steel Project...

Project Management in for a Steel Project Project consists of a group of tasks, performed in a definable time period, in order to meet a specific set of objectives. It is a temporary activity. It is a one-time program hence different from operations where tasks are repeated in a routine way. Every project has a life cycle, with a specific start and end. The work scope of a project can be categorized into definable tasks. Project has a budget within which it is required to be completed. During the execution of the project, there is likely requirement of multiple resources. Many of these resources can be scarce and may have to be shared with others. Steel project like any other project has a life cycle (Fig 1) which includes (i) initiation, (ii) planning, (iii) execution, (iv) monitoring and control, (v) commissioning and handing over, and (vi) closing of the project activities. Fig 1 Project life cycle Steel project has four components namely (i) performance, (ii) cost, (iii) time, and (iv) scope. All these four components are interrelated and dependent on each other. Performance is the quality of the work being done. Cost is the expenditure made on the project work and is directly related to the human and physical resources applied. Time is the schedule which is required to be met for completing the work. Scope is the magnitude of the work to be performed. One of the key ingredients for successful project management in a steel project is having the right people on the job and managing them appropriately. Both of the two elements ‘having the right people’ and ‘managing people appropriately’ are important for the project success. However, in practice both conditions are frequently violated. There are several groups of activities in...