Learning from experience of projects teams:
Lessons Learnt Process at TK Uhde
Gregor Gonsior
VDI-Expertenforum
WM im Engineering
23. Mai 2013
Lessons Learnt Process at TK Uhde
May 2013
ThyssenKrupp Uhde
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ThyssenKrupp UhdeA process-oriented project delivery company
ThyssenKrupp Uhde is a process-oriented EPC contractor that provides world-class process plant solutions to producers around the globe
� Latest process innovation, broad technology
portfolio and world-class project delivery
� A global network of engineering offices
and a workforce of 5,900 employees
combine local knowledge with global
expertise
� A track record of more than 2,000
full-scale process plants implemented
worldwide
Lessons Learnt Process at TK Uhde
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ThyssenKrupp Uhde
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ThyssenKrupp GroupBusiness Areas
Fiscal Year 2011/2012: Sales € 47.01 billion Employees 168,000
ThyssenKrupp
Steel Europe
Steel Americas
Materials ServicesComponents Technology
Elevator Technology
IndustrialSolutions
ThyssenKrupp Uhde
Lessons Learnt Process at TK Uhde
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ThyssenKrupp Uhde
4
0
500
1000
1500
2000
2500
07/08 08/09 09/10 10/11 11/12
0
1000
2000
3000
4000
5000
6000
Facts and Figures - ThyssenKrupp UhdeSales, Order Intake, Employees
Sales Order Intake acc. to Regions
Sales and Employees Facts and Figures
BY 2010/11 BY 2011/12
Order Intake 1,613 1,122
Sales * 1,428 1,330
Order backlog 2,978 2,803
Eng. capacity (Mio hours) 7.1 7.4
Equity capital * 557 584
* acc. to IFRS
€ in millions
Employees
Sale
s:
€in
millio
ns
Americas
India/ME
Europe/Africa
Asia/Pacific
2009/10 2010/11
In %
10
18
57
15
20
33
36
11
2009/10 2010/11
Fertiliser
Base Chemicals
Polymers
Contracting Services
46
21
17
16
36
21
24
19
€1,450m €1,428m
In %
€1,613m€1,497m
19
30
20
31
€1,330m
2011/12 2011/12
26
40
18
16
€1,122m
Lessons Learnt Process at TK Uhde
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ThyssenKrupp Uhde Fields of ActivityThyssenKrupp Uhde implements clients expectations by means of innovative technologies, competent engineering and customised services
,
Fertiliser
Base Chemicals
Polymers
R&D
Chemicals /
Petrochemicals
Upstream
Oil and Gas
Refining
Offsites &
Utilities
Basic Services
System Services
Performance &
Technology Services
Consulting Services
Technology
ContractingServices
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More than 2,000 plants built by ThyssenKrupp Uhde - worldwide ID142
130 plants
115 plants375 plants120 plants
500 plants150 plants
Fertilisers RefineriesNitric acid Aromatics
185 plants 380 plants 75 plants
Org. Chemicals/petrochemicalsHydrogen, ammonia, methanol Plastics, synthetic fibres Polyester / polyamides
400 plants
Electrolysis Coke plant technologies
105 plants
Tank storage facilities
100 plants
Gasification
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Customer Profile
Our customers are
� chemical and petrochemical companies worldwide
� oil and gas companies worldwide
� special-purpose companies owned by institutional and private investors
� private and state-owned companies
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Global Engineering Network7.4�million�engineering�hours�per�year - local�knowledge�combined�with�global�expertise
MelbourneJohannesburgRio de Janeiro
Mexico City Mumbai/ Pune
Cairo
Bangkok
Hanoi
Al Khobar
Duba
i
Shanghai
Tokyo
Nizhny Novgorod
Dzerzhinsk
Moscow
Pittsburgh, PA
Germany
Beijing
Americas
Employees: 350
Eng. hours: 470,000
Europe/Africa
Employees: 3,400
Eng. hours: 4,100,000
Asia/Pacific
Employees : 700
Eng. hours : 900,000
India/Middle East
Employees: 1,400
Eng. hours: 1,900,000
Central Engineering Hub:
Uhde Mexico
Central Engineering Hub:
Uhde Russia
Central Engineering Hub:
Uhde India
Central Engineering Hub:
Uhde Thailand
Roermond Domat/Ems
Mailand
London
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• Professional constructionmanagement execution,in-house and on site
• Qualified constructionmanagement resourcesat all locations
• Premium quality of construction work and common“best-practice” CM processes and tools
• Allocation of most suitable execution conceptand management resources to each individual project
• Uniform workflows, toolsand project reporting
• Worldwide resource management andqualification
• Globally harmonized engineering processes, methods and tools
• Tailor-made developmentprograms for the local organisations
• Global engineering resourceutilisation and management
• Global framework agreements with major vendors
• Common purchasing, expediting and inspectionstandards at all locations
• Qualified inspectionpersonnel atall locations
Global Project Management Global Procurement
Global Engineering Global Construction Management
Global Functions Specific local expertise transformed into one global capability
• Defining of basic rules to meet companies responsibilities (regulatory requirements)
• Managing of QM documents
• Organization of audits and co-ordination of third party audits
• Implementation of Global Procedures (standards) in the whole TK Uhde Group
• Support of project QM and HSE Managers on site; regular benchmarking & reporting
• Assessment of project related experiences and deriving of process improvements
Global Quality Management, HSE & Security
Lessons Learnt Process at TK Uhde
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Typical Project at ThyssenKrupp Uhde Complex set-up to meet the organizational and operational requirements
• Project (Contract) Value: 500 Mio. €
• Project Duration: 4 years
• Project Categorization: A, (B, C, D); defined assessment
• Project Phases: (Bid) –
Basic Engineering –
Detail Engineering –
Procurement –
Construction / Erection –
Commissioning –
(Service)
• Project Organization: Task Force with ~ 50 team members
• Key Responsibilities: Project Manager, Engineering
Manager, Procurement Manager,
QM/HSE Manager, Lead Engineer(s)
• Split-of-Work: Often some Uhde Local Organizations
involved (e.g. Germany + India)
• Split-of-Supply: Always a high number of specialized
suppliers, some for very complex units
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Project Set-Up with a complex Work-Breakedown-StructureO plus consideration of matrix organisation required
Engineering Manager Procurement Manager Erection Manager
Project Manager
Time-SchedulingCommercial Manager QM/HSE Manager
Basicengineering
Detail engineeringErection and
commissioningHand-overProcurement
� Plant design
� Civil engineering
� Instrumentation
� Electrical engineering
� Equipment
- machinery
- process vessels
- package units (PU)
- offsites / utilities
�Plant design
�Piping engineering
�Civil engineering
�Instrumentation
�Electrical engineering
�Equipment
- machinery
- process
vessels/PUs
- offsites
���� Process engineering
���� Erection engineering and inhouse co-ordination
Partner
UHDE Local Organisation
� Procurement
� Expediting
� Inspection
� Logistics
� Commercial admin.
� Technical admin.
� Materials management
� Construction/steel
construction work
� Erection work
- equipment
- piping
- electrical engineering
- instrumentation
- paintwork / insulation
� Commissioning
Document Manager
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Rule-of-ten: Impact of failures to the overall project costs “First-pass-yield” in engineering must be increased to a maximum
BasicEngineering
Procurement
DetailEngineering
Erection /Commission.
Bid
What efforts / costs are required to correct detected failures in
dependence of the project phase...
Eff
ort
s / C
ost
s re
qu
ired
Correction of few data or
drawings without impacts
to contracts or other
disciplines
Correction of some data
or drawings with
consideration of impacts
to other disciplines and
external suppliers
Re-order, re-
arrangement or plant re-
planning with severe
impacts to the erection
process or plant
performance
Customers claims and /
or contractual penelties
with additional loss of
reputation and customer
retention
HandOver
Lessons Learnt Process at TK Uhde
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Systematical approach required to reduce the failure rate Standardization, communication + continuous analysis of Lessons Learnt
Consequences:
• increasing of the „first pass yield“ significantly reduces
the overall project costs
but
• a „failure rate“ of 0.0 % is not realistic in plant
engineering
Of course, we strive for lowest possible „failure rate“!
A systematical Lessons Learnt Process is a good approach
to learn continuously from experience and to reduce the
failure rate in the medium term.
It helps to detect failures in time and to avoid their repetition.
In addition to this „good practices“ can be recognized and
implement quicker in the organization.
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Core Elements of the Standardized Lessons Learnt Process Simple & stable process, with integration in QM system
Collection
Application
Lessons
Learnt
Process
Improvement
Process(es)
…
…
…
……
…
a
e
Individual
experiences of
project team
members
Initiation of
Improvements
c
Disseminationd
Analysis &
Consolidation
b
Details described in a
Global QM Procedure
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Mandatory Lessons Learnt Process ... by integration in QM system
Process description and
integration in QM System gives the
opportunity to make it mandatory in
project execution
Lessons Learnt Process at TK Uhde
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Integration of the Lessons Learnt Process in Project Execution Permanent collection of experiences; repeated analysis & consolidation
Execution PhaseBid Phase
EDC Effective Date of Contract
PAC Provisional Acceptance Certificate
FAC Final Acceptance Certificate
BE Basic Engineering
DE Detail Engineering
Bid-
NoBid
signingor
lossofproject
EDC PAC FAC Close
ProjectBid-sub-
mission
BE DE PROCUREMENT,ERECTION COMMISSIONING
Gatherandtakeinto
accountexistingLL
optionalactivity,dependingonmanagementdecision
mandatoryactivityforallA,Bprojects
ApplicationofLessonsLearnt...
GenerationofLessonsLearnt...
Analyse&Consolidate
collectedexperiences
Collectindividualexperiences Collectindividualexperiences
ApplyexistingLessonsLearnt ApplyexistingLessonsLearnt
Activities within the Lessons Learnt Process
mandatoryactivityforallA,BandCprojects
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Process with described responsibilities and supportsNominated Lessons Learnt Co-Ordinator required
Collection
Analysis &
Consolidation
Initiation of
Improvements
Dissemination
of Results
Application
1
2
3
4
5
Who When
• All members of project teams
• All employees who support projects
• Over the (whole) course of
the project execution
• Project Management + Lead Engineers
• Topic Experts
• (Line Responsibles)
• After completion of major project
phases or big work packages
• If significant changes occur
• If severe failures occur
• Line Responsibles • After hand-over of project related
LL results and detailing of
improvements
• After consolidation and release of
LL results by the project team
• All members of project teams
• All employees who support projects
• In the start phase of a new project
• When a project reaches the next
major phase
Supportive measures /
tools
• LL Database
• permanent agenda topic
in project meetings
• LL Database
• regular LL Workshops
within the project team
• LL Database
• internal meetings
• internal publications
• LL Database
• Project Kick-Off‘s
• Line Responsibles
• Project Management + Lead Engineers
• Lessons Learnt Co-Ordinators
• LL Database (to register
the improvement status)
• other Improvement Mngt.
Frameworks
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ThyssenKrupp Uhde
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Lessons Learnt Database as a supportive toolIntegrated into “UhdeNet”, the ThyssenKrupp Uhde Intranet
A supportive (IT-) tool
must not be used as
the only presence of
the process
but:
It helps a lot to stay
present for all
employees and in all
project teams
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Lessons Learnt Workshops to analyse the gained experience Some success factors
Location, without disturbance
by day-to-day workload
Clear aims and
workshop rules
Small groups (4O 7
participants) for detail
discussions
Good preparation of all
participants in advance
to the workshop
Appropriate presentation
techniques
Moderation by
external or - at least
- not in project
involved people
Open and factual
atmosphere
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Resumé: Lessons Learnt process at ThyssenKrupp Uhde Successful implementation by close integration into Project Execution
• LL Process mandatory at TK Uhde
• Described by a (global) QM procedure
• Integrated into the Project Execution
• Process supported by several
measures, not only by IT tools
• Nominated Lessons Learnt Co-
Ordinator(s) as facilitators
• Influences on quality of project results:
� by direct reduction of failure rates
� by faster identification of
improvement demands
� by an increased communication
within the project team
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