W7_AI_Developing Operation & Maintenance Model for Offshore Regasification Facility Project

  1. Problem Definition

Besides capital expenditure, one of the cost components which is needed in financial economic model is operation and maintenance cost. Still discuss about offshore regasification facility project, this week I will develop operation and maintenance model for the project. As for the initial stages in building O&M model is determine cost structure. In making the cost structure of a project, the first thing to do is by determining work breakdown structure (WBS). In this week, I will choose WBS standardization between omni class and norsok to be applied.

 

  1. Identify the Possible Alternative

There are two commonly used WBS standardization among others:

  1. OmniClass
  2. Norsok

Both of this standard would be compared and the optimum WBS standard would be choosen.

 

  1. Development of The Outcome for Alternative

Table 1. OmniClass Table

The table above is 15 hierarchical that is designed to provide a standardized basis for classifying information. Each of it represents a different phase of project information and every entity can be combined one and another, to build more complex structure.

Moine has developed a 3D WBS model. All of three dimension project can be integrated which visualized as figure below:

Figure 1. 3D WBS Model

 

Norsok Standard describe a system for cost coding and weight estimates and as-built or experience data. The following is coding system classification of Norsok standard:

Figure 2. Norsok Standard

 

  1. Selection Criteria

Cost structure which can be applied from OmniClass standard to O&M model of Offshore Regasification Facility Project consists of:

  1. Level 1 Table 31 – Phases
  2. Level 2 Table 32 – Service
  3. Level 3 consists of several components:
  • Table 34 – Organizational Roles
  • Table 21 – elements

Figure 3. Table 31 – Phase

Figure 4. Table 32 – Service

Figure 5. Table 34 – Organizational Roles

Figure 6. Table 21 – elements

 

While the applicable cost coding of Norsok Standard to O&M model of Offshore Regasification Facility Project consists of:

Figure 7. Operational Principles Norsok Standard

Using Norsok standard some parameter must be identified at the first place:

  1. Operating Concept
  • Operation objectives
  • Operating environment
  1. Operating Philosophy
  • Criticality
  • Complexity
  • Choice of technology
  • Training and sparing
  • Manning and personnel competence
  1. Production function requirements
  • Production operations (general, start-up, shut-down, isolation for maintenance, well testing, well intervention)
  1. Maintenance function requirements
  • Maintenance strategy
  • Maintenance engineering (design, organization, programs)
  1. Inspection strategy

 

  1. Analysis & Comparison of Alternative

Both standards can be applied in operation & maintenance model of offshore regasification project. But one of the most optimum methods must be chosen to be applied in this project. Considering that the methods used is top-down and from owner perspective, as well as on business scheme operation & maintenance facilities will be contracted to a third party (ship management) using the Long Term Service Agreement, so the coverage of O&M model consists of head quarter O&M, along onshore receiving facilities and pipeline on site.

Considering it is then the most optimum standard used is OmniClass standard.

 

  1. Selection of the Preferred Alternative

Based on above description, it shows that the combination of Omniclass table with 3D WBS is better than the single standard. As we can gain deliverables that can be view from many perspectives. Then OmniClass 3D WBS is considered to be applied for Offshore Regasification Facility Project.

 

  1. Performance Monitoring and The Post Evaluation of Result

This 3D WBS is very suitable with condition of current business scheme, so it will have a positive impact on the company for developing it. But also the company need to consider another standard like Norsok as a validation against third parties, or when the business scheme changes, such as the company responsible as a facility operator & maintenance.

Reference:

  1. Planning Planet (2017). Creating Work Breakdown Structure.

Retrieved from http://www.planningplanet.com/guild/gpccar/creating-work-breakdown-structure

  1. Sullivan, G. W. (2014). Engineering Economy 16th Chapter 3 – Cost-Estimation Techniques, pp. 96-98.
  2. Nunar, A. H. (2014). 1_SJP_Forecasts Part 3.

Retrieved from https://soroakoaace2014.wordpress.com/2014/10/01/w4_anh_exploring-omniclass-and-3d-wbs-for-waste-water-treatment-plant-project/

  1. Norsok Standard. Retrieved from

http://www.standard.no/en/webshop/norsok/?gclid=CjwKCAjwuvjNBRBPEiwApYq0znFC82NEh-OnYem5gU6RHcLNKM-Gx94QdFJQCp_ljPWR14CyBKHaoRoC2r8QAvD_BwE#.Wb5XtdElHIU

  1. OmniClass Standard. Retrieved from

http://www.omniclass.org/

 

2 thoughts on “W7_AI_Developing Operation & Maintenance Model for Offshore Regasification Facility Project”

  1. Ibu Irene, you were doing really GREAT up until Step 5……. You had all the pieces so why didn’t you create a multi-attribute scoring model to look at the options and see which of them gave you the top 3, 4, 5 or even 6?

    Given your project is an OFFSHORE project, while Omniclass is clearly for ONSHORE work I would really like to see you develop an explanation as to WHY you chose Omniclass over NORZOK Z-014? (There are some good reasons but you either missed them or just didn’t explain them very well to us)

    Here are some additional references you may want to spend some time reviewing before you fix this and republish it as W7.1?

    https://www.wbdg.org/resources/omniclass

    http://www.standard.no/pagefiles/1137/o-cr-002r1.pdf

    https://kristalaace2014.wordpress.com/2014/06/22/w17_gw_-norsok-standard-z-014-3d-wbs-on-pipeline-installation/

    http://eprints.utm.my/42159/5/MohdAkmalAbuHassanMFKM2013.pdf

    Go back again and think through in terms of LIFE CYCLE COSTING do you REALLY need a 3 dimensional model or would a 2 or even single dimension work? (HINT there is no single “correct” answer but there are several “common sense” sorts or filters that would make sense.

    BR,
    Dr. PDG, Jakarta

     
  2. PS Bu Irene….. To help you get started, in terms of LIFE CYCLE COSTING, would Table 13 “Spaces by Function” work for that purpose? The life cycle cost of a SCADA room? Or the life cycle costs of a HVAC room?

    Or how about PRODUCTS? (Table 23) The life cycle cost of a PUMP or an AC Unit?

    And what about by ELEMENT? (Table 21 or Norsok PBS- Physical Breakdown Structure?)

    What I keep trying to get everyone to understand is that the THREE DIMENSIONAL MODEL SHOWN BY Moine is only one EXAMPLE of three possible combinations and permutations. That for LIFE CYCLE COSTING you may choose totally different coding structures than you would for the initial cost estimate.

    Anyway, keep plugging away at this topic as it clearly has a lot of interest in this class…

    BR,
    Dr. PDG, Jakarta

     

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