KEMUD INTERNATIONAL LIMITED

KM 20 ABA/ PH EXPRESSWAY, OYIGBO, RIVERS STATE, NIGERIA

TEL: 08037113559, 07085096571.
E-MAIL: kemud_inter@gmail.com, kemudinter@gmail.com.

PROJECT OPERATIONS PLAN

FLOWLINE/PIPELINE SECTIONAL REPLACEMENT IN NOAC LAND &

SWAMP AREA

NIPEX TENDER NO. 00000100

Tochukwu
0 29.09.17 PRESENTED FOR BID Chinedu O. Stan C.
O.

ORIG. CHK APPR. Rep.

Rev Date Description
CONTRACTOR COMPANY

KIL Document Number Rev

KIL/NAOC/FPSR/TECH BID/3

Project Contract Originator Type Seq. No. Sheets Rev.

Project Management
Document No.

0
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Document
Number
KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

TABLE OF CONTENT

1.0 GENERAL

2.0 SCOPE

3.0 REFERENCE

4.0 DEFINITION

5.0 RESPONSIBILITY

6.0 PROCEDURE

7.0 ATTACHMENT
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Document
Number
KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

1.0 GENERAL

This document will provide an overview on how project control – planning and
cost control will be implemented on any KEMUD INTERNATIONAL LIMITED
project. The focus will be on successful engineering support and procurement,
fabrication and pipeline construction, to stay within schedule and budget
limitation.

2.0 SCOPE

The scope covers planning, scheduling and cost control during fabrication,
Pipeline Construction, engineering and procurement.

3.0 REFERENCE

KEMUD INTERNATIONAL LIMITED Quality Manual (KIL-QM-001)

Project Management Body of knowledge
Project Management: A Systems Approach

4.0 DEFINITIONS

4.1 KEMUD INTERNATIONAL LIMITED

KEMUD INTERNATIONAL LIMITED herewith referred to as KEMUD.

4.2 Planning
The development and maintenance of the project plan.

4.3 Scheduling
Analyzing activity sequence, durations and resource requirements to create a
project schedule.

5.0 RESPONSIBILITY

5.1 The Project Manager

The Project Manager shall be responsible for the overall planning for the
project. It is his responsibility to inform the Project Manager of all deviations
from the original planning and to propose the necessary corrective action to
meet the delivery date defined in the contract.

5.2 Planning Engineer

The responsibilities of the Planning Engineer shall include:

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KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

(a) Preparation of project schedules.

(b) Regular review and update of the schedules.
(c) To assure that proper steps are taken to maintain the dates set by the
schedules
(d) Establishment of consistent guidelines for timing, format and content of
schedule information supplied to him.
(e) To assist the individual disciplines and subcontractors in preparing their
schedules.
(f) To review the disciplines and subcontractors schedules for consistency with
the integrated work schedule and through proper channels to ensure that
the necessary revision and adjustments are made to ring all schedules in
line.
(g) To keep the integrated work schedule current and to see that the major
discipline and subcontractors schedule are kept current.
(h) To monitor all schedules and identify potential problems to the project
management team.
(i) To prepare progress reports.

6.0 PROCEDURE

6.1 Computerized System

Modern computer based project management techniques shall be employed.

MS Project, Excel and Word shall be used.

6.2 Planning and Schedule Plans

The planning will be carried out on the following base:
a) Contract Master Schedule (Level 1)
b) Summary Schedules (Level 2)
c) Detailed Schedules (Level 3)
d) Detailed Work Activities (Level 4)
e) Short Term (3-month) Front End Schedule.

6.2.1 Contract Master Schedule (CMS) (Level 1)

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KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

This CMS will be provided in bar chart format and will show the milestone
events and the duration of main activities for the client riser, flowline/pipeline
repair work including:
a) Engineering
b) Procurement
c) Fabrication / Construction
d) Installation
e) Hook-up
f) Testing / Commissioning
g) Riser repair mechanical acceptance.

The CMS will summarize the level 2 schedules, highlighting critical activities
path, and demonstrate IBL overall objectives for completing the work at the
contract delivery date. The CMS will be followed. It will be status monthly to
show actual progress.

6.2.2 Summary Schedule (Level 2)

These summary schedules will be provided in bar chart format covering the
following:

a) Engineering
b) Procurement
c) Fabrication / Construction
d) Installation
e) Hook-up
f) Testing / Commissioning
g) Riser repair mechanical acceptance.

These activities will be detailed for:

a) Fabrication / construction
b) Installation.

The summary schedule will summarize the detailed schedule level 3 by

construction site and will be consistent with activities and milestones contained
in the level 1 schedule. It will be reviewed monthly to show actual progress,
including actual start and finish dates.
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Number
KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

This schedule will be followed up on site and reported to the Project Manager.

6.2.3 Detailed Schedule (Level 3)

These detailed schedule shall be provided in bar chart, will have sufficient
details, and resourced as appropriate, to clearly demonstrate the logic and
viability of the overall program. The bar chart will be revised once a month to
show actual progress.

A weight factor based on level 3 will be assigned to each activity to show “S”
curves for actual, scheduled and forecasted progress.

These detailed schedules will be followed up on site and reported to the Project
Manager.

6.2.4 Detailed Work Activities (Level 4)

These will comprise work element listings such as Engineering Drawing Control
List, Purchase Order Register, and Productivity Schedules. The work elements
will be referenced back to levels 1 and 2 schedule activities and will be
assigned weight factors based on estimated man hours to form basis of the
detailed progress reporting systems.

These documents will be status on a weekly basis to support the progress of

work.

6.2.5 Short Term (3-month) Front End Schedule

KEMUD INTERNATIONAL LIMITED shall prepare a short term front end

schedule, which will detail all activities required for the initial phase of the
project and submit same to the client for review within 14 days of
COMMENCEMENT OF THE CONTRACT. This will be updated weekly to show
actual progress until the permanent schedules and progress reporting systems
listed herein are ready.

6.3 Project Progress Monitoring System (PPMS)

A separate and overall progress will be provided for each of the following:

a) Engineering
b) Procurement
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KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

c) Fabrication / Construction
d) Installation
e) Testing / Commissioning.

On weekly bases for the fabrication phase. Detailed back up will be issued
monthly to support the progress related items of KEMUD INTERNATIONAL
LIMITED payment schedule. This schedule will also provide “Exception Report”
reflecting missed milestones / events defined on Level 1 schedule with the
recovery action planned.

6.4 Engineering
A cumulative progress “S” curve based on estimated man-hours weightings and
manpower histogram based on estimated man-hours required to complete the
work within the timings on the level 2 schedule shall be provided.

These curves shall be statured on two weeks basis to show actual manpower
and actual percentage of work completed.

6.5 Fabrication / Construction / Installation

For each major section of the work, the following will be produced with forecast
values as appropriate.

a) Actual versus planned progress “S” curves.

b) Actual versus planned manhours expenditure curves.
c) Actual versus planned manpower histograms.

Actual work will be based on physical measurement of work activities completed

and in progress, calculated from the activity manhour based weight factors.

The weighting of Change Orders (C.O’s) will be based on estimated manhours

calculated in an equivalent manner to the base quantity manhour estimate in
order to have a common basis for progress measurement. The Progress
Monitoring System for fabrication / installation will be updated monthly.

6.6 Progress Report

KEMUD INTERNATIONAL LIMITED shall provide the following reports to the

client as specified in the contract. The report shall contain the following
information as a minimum:

6.6.1 Daily Construction Site Report

The daily construction site report, which shall be submitted to the client within
three (3) hours of the beginning of each shift or day shall contain the following:
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KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

(a) A summary of materials delivery / status.

(b) Accidents
(c) Weather statistics.
(d) Safety meeting topics.
(e) Toolbox meeting topics.
(f) Areas of concern and significant occurrences.

6.6.2 Weekly Progress Report

(a) A summary of all project activities including engineering, procurement,

fabrication / construction, installation, hook-up and commissioning.

(b) A summary of material received report.

(c) A summary of all safety related matters affecting the project.

(d) A summary of drawings control report.

(e) A summary of equipment status report including down time for critical
equipment.

(f) A discussion on “Project Concerns” that KEMUD INTERNATIONAL

LIMITED has and what is being done to mitigate.

This weekly report shall be issued to the client every Tuesday by noon local
time.

6.7 Project Schedule Monitoring

Using the integrated project control approach, the Planning Engineer shall track
and monitor the progress of the project. Each participating discipline engineer
and superintendent shall be responsible for tracking and controlling their areas
of responsibility.
The methods to be employed are briefly described below:

6.7.1 Weekly (In-house) Operations Meeting

Meeting at which supervisors, superintendents and higher echelon of project

team examine general project progress including logistics, fabrication /
construction, resource availability and other problems that threaten schedule
delays, and proffer solutions to them.

6.7.2 Weekly (In-house) Progress Meeting

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KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

Meeting at which foreman, team leaders and high echelon of project team
examine general project progress. The aim is to ensure that any nascent
schedule threatening trends are nipped in the bud.

6.8 Cost Control

6.8.1 Cost Baseline

The baseline for the project cost control will be the contract price, as defined in
any project awarded to KEMUD INTERNATIONAL LIMITED.

6.8.2 Variations and Change Orders

The cost engineer will prepare variations and change orders in accordance with
corporate project change control procedure. The change order will be priced
based on available information from the detailed cost estimate and detailed
quantity information that is provided by the disciplines involved.

6.8.3 Project Cash Flow “S” Curve

Within 30 days after the commencement of the project cash flow “S” curve, for
the overall project will be developed and submitted to the client for approval.
The “S” curve will be constructed by assigning values to each milestone / mini
milestone. The cumulative value of the “S” curve shall equal the lump sum
amount of the contract price.

7.0 ATTACHMENTS

7.1 Attachment 1 – Planning Organization and Interface Relationship.

7.2 Attachment 2 – Flow Chart for preparing and updating plans, schedules and
reports.
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KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

FLOWCHART FOR PREPARING AND UPDATING PLANS, SCHEDULES AND

REPORTS

Establish Operational Schedule /

Plan

Measure and Report Progress

Compare Actual Achievement

with that Planned

Yes
Actual = Planned?

No

Determine Effect on Completion

Date

Yes
Ahead of Schedule?

No

Plan and Implement Corrective

Action

Update Operational Schedule /

Plan

No
Is Actual Progress = 100%?
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Document
Number
KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

Final Document at Close of

Project
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Document
Number
KIL/NAOC/FPSR/TECH BID/3
Document Type : TECHNICAL TENDER Date : 29 /09/ 2017

PLANNING AND SCHEDULING ORGANISATION INTERFACE / RELATIONSHIPS

QA/QC Manager Project Manager HSES Manager

Construction Manager Planning Engineer Project Engineer

Construction Superintendent

Construction Supervisor

LEGEND:

DIRECT REPORT LINE

INTERFACE LINE