editorial - bahrain society of engineers · chemical engineering graduates? waste heat recovery as...

EDITORIALWelcome to ”Al Mohanis” Issue # 60. This issue is under production while we are approaching Ramadan Eid. On behalf of BSE’s Board of Directors and Magazine Team, We extend to all of you and your families our best wishes for a very happy and blessed Eid.

We also would like to apologize for delay in producing this issue, which contains. BSE’s history, an article focussing on consultant offices, waste and energy management. We would request consultant offices to shed light on the current challenges and ways to enhance their professional work and services.

We also highlight the best engineering student projects to appraise them for their excellent work and to encourage them to continue their research and innovation

We hope that you will enjoy reading this issue and would seek your feedback, comments, contribution and suggestions to enhance the magazine in order to meet your expectations.

Best RegardsAbdul Nabi Al Sabah

Editing TeamAbdul Nabi Al Sabah Director of Information

Editor-in-ChiefShahraban Sharif

BSE Public Relations & Media OfficerAmal Al Aradi

Journal CommitteeEffat RedhaDr. Isa QamberAhmed Al GhurbalEbrahim Abdul Ameer

Jawad Al JabelExecutive Secretary

Ayman Mohamed NasserDirector of Training

Abbas Ali Alwatani Treasurer

Abdul Nabi Al Sabah Director of Information

Abdulla JanahiVice President

Ahmed A. Rahman AlkhanDirector of Membership Affairs

Jameel Khalaf Director of Conferences

Reem Ahmed AlotaibiDirector of General Activities

The Board of Directors

Masoud Ebrahim Al HermiPresident

The Bahrain Society of Engineers is not responsible for opinions published in “Almohandis”.

Please send your articles to the Bahrain Society of Engineers.

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From the Desk of the President. 4

Profile: Eng. Jawad Al Jabal 6

Should There Be More 10 Chemical Engineering Graduates?

Waste Heat Recovery as a Potential CDM Project 14

From energy production to energy management 18

Bahrain Training Institute Building 30

Engineering Students Projects 36

ISSUE 60 January 20154

From the Desk of the President

Masoud Ebrahim Al HermiPresident

Dear BSE Members,

We have always been accustomed through “Al Mohandis Magazine”, to shed light on the most important achievements of the Bahrain Society of Engineers (“BSE”) and to highlight its events which make us, as members, feel proud to be part of this professional and specialized organization.

While going through the pages of this issue, you will find coverage for many of the activities and events, conferences, training programs and workshops that the BSE has managed to professionally organize, thanks to Allah and the BSE members. This has added a new impetus to this unique engineering edifice, and made the BSE focus of attention and admiration of all those who keep on monitoring its development and growth over the past years.

The “Arab Airports Conference” organized during this year, was a major and leading conference that was organized for the first time by the BSE in the Kingdom of Bahrain in collaboration with the Federation of Arab Engineers. This conference has received an overwhelming response and registered a record success in terms of participants, attendance and working papers.

Moreover, the BSE organized “The World Environment Day”, for the second year in a row.

As part of its initiatives to support and assist the students who wish to study engineering, the BSE hosted the “Engineering Professions Exhibition” in collaboration with TAMKEEN, which targeted the students who wish to choose a suitable engineering profession.

The Bahrain Society of Engineers has always been trying to keep up with the major and most significant developments that are witnessed by the local, regional and global arena in all fields, especially those related to the engineering sector. Therefore, we always aspire to attract new concepts and unique ideas that promote the name of the Kingdom of Bahrain in all forums on the one hand, and to highlight the role of BSE, as a professional and specialized organization in the Kingdom on the other hand.In this regard, we are pleased to extend our thanks and gratitude to all those who contributed in the success of conferences, activities and events that have been organized by the BSE.

Finally, at a time when this issue will be in your hands, there has been two important events that have been witnessed. The first is the holy month of Ramadan, and the second is the Bahraini Engineer Day, and on these two occasions we extend to all Bahrain’s engineers our sincere congratulations and wish them success and further prosperity.

Engineer Ebrahim Masoud Al Hermi President of the Bahrain Society of Engineers

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ISSUE 60 June 20156 |

Profile

Eng. Jawad Jaffar Al Jabal

Engineer Jawad Al Jabal is one of active members in the BSE. He has contributed effectively in many key activities, out of his belief of the importance of social duty and unconditional giving to serve the community and to push forward the profession of engineering.

Going back to the past, to the memories, thoughts and events, we listen to our guest and quote the conversation we have had with him:

The Memories of Childhood and Early BeginningsEngineer Jawad Al Jabal was born in the year 1963 in the village of Sanabis to a family from middle class, consisting of five brothers and three sisters. Commenting on that period he started talking: The life was simple and characterized by strong social and family ties. Most of childhood times we used to spend near the sea which was close to my house and in the palm groves around the village. My father and the mother had significant impact on the formation of my character, they implanted in me determination, struggle and love of work values.

University Life and the Sweetest MemoriesThe university life was a distinct stage in my life which contributed in refining and enriching my character (with the struggle experience of self-reliance). This stage helped me to gain friends and entering in various rich experiences that could not be forgotten.

In this issue we host Engineer Jawad Jaffer Al Jabal, Secretary and Director of External Relations at the Bahrain Society of Engineers (“BSE”) to shed some light

on his educational and professional life and his voluntary work in BSE.

The beginning was in 1981, when I graduated from high school and obtained a scholarship to study engineering in Cairo. However, due to the sensitivity of the Arab political situation at the time, as a result of signing Camp David Accords by Egypt we were sent back from Cairo due to the difficulties we had faced in acceptance at the Faculty of Engineering.

When I returned to Bahrain, the Ministry of Education offered me a chance to study medicine in India, but I had no passion for

ISSUE 60 June 2015 | 7

medicine. I insisted on the specialty of engineering and finally. I received an alternative scholarship to study civil engineering at the University of Bahrain. What encouraged me to accept this option is the presence of my best friends in the same college i.e. Ali Al-Ekri and Jameel Khalaf Al Alawi.

In fact, the university stage was a different phase and rich with experiences and added a lot to my life not on the academic level but also on the level of life experience and social relations. I engaged myself in the student work and chaired the Cultural Club at the university for two consecutive years, and the social club for another year. The student work enriched my life experience my experience of life and added a lot to my social relationships. Dr. Hanna Makhlouf, Chairman of the Civil Engineering Department at the time, had a significant impact on the university study. I worked closely with him and presented two academic papers: the first on the deterioration of concrete which was published in the Journal of the American Concrete Institute, and the second on Crack width and minimumreinforcement according to ACI - 318 - 83 & BS 8110.

During the school years I got to know my partner engineered Hiam Al Maskati

Practical Life and the Major Challenge in My LifeI began my practical life on 11th November 1989, when I joined the Ministry of Health as a civil engineer trainee for three years.

This helped me to choose the best specialization that suited me more and I selected engineering of health facilities, project management. In 1998 I received a scholarship from the British Council and the Ministry of Health and traveled to study master’s degree in construction management in the city of Nottingham in England. Engineer Abdulellah Al Qasimi played a major role in helping to me to enroll in Master study and training. I also obtained the higher diploma in health facilities management from the Ireland Royal College of Surgeons.


Voluntary Work and Bahrain Society of EngineersImmediately following my graduation, I applied for the BSE membership and worked in several committees, particularly the Conferences Committee where a member could gain substantial experience in events organization. An engineer also could have access to engineers from various establishments. I was on the BSE’s board in the following years: 1997-1998-2001 years -2002-2004-2003-2009-2010-2011-2012 and 2015.

Engineer Jawad talks about the role of the BSE and old members in shaping the characters of young engineers and encouraging

them to take part in volunteer work. I would like to underline the efforts exerted by all the presidents of BSE during his terms of office and their role in encouraging the new engineers to record success in their careers, I would like to specifically mention Engineer Dheya Tawfiqi, who was the first president I worked with.

When we asked him what the volunteer work means to him, he briefly said: Voluntary work is the ground for creating an able generation who is qualified to serve the country and the profession, and voluntary work is an important tributary to create individuals who serve the country.

At present, I am the head of Engineering and Maintenance Department at the Ministry where I am responsible for design of health facilities and development of appropriate engineering specifications. It is an experience that is different from working in any other engineering discipline. Preparing a design that suits a health facility is a major challenge, and requires attention to every detail including the flooring, lighting, medical gases, air-conditioning, and medical equipment. Controlling the spread of infection plays is considered a major aspect of the design, as it involves most stringent details and specifications The health buildings vary depending on the usage. Designing a health center differs from designing a physiotherapy center, ICU or inpatient ward. This is a very extensive challenge in itself as designing requires a period of time for research before starting.

Among my other engineering concerns, working as an engineering expert and registered with the Ministry of Justice for such purpose. I also obtained a certificate in the arbitration from Bahrain Dispute Settlement Chamber in addition to a certificate on the use of mediation to settle disputes in Bahrain Dispute Settlement Chamber, which is an important sphere and allows the engineer to be exposed to a variety of other experiences.

ISSUE 60 June 2015 | 9

Family Life and HobbiesTable tennis is my favorite hobby since I was a key player in Sanabis Club and player in the junior team. I managed to win the University Championship for several consecutive years. I also trained the youngsters team in the Club, as a result of which the Club won the championship for two years,

I am married IT engineer Hiam Al Maskati, who in turn took part in the Board of Directors. I have one son and one daughter: Ahmed and Dima. Ahmed is currently studying economics and law at the University of San Francisco, California, and Dima is in the tenth grade in Ibn Khaldoon School. In this context, I would like to thank my wife for her patience as a result of my engagement in the BSE for a long time.

In conclusion, Engineer Jawad says that the BSE plays a leading role in supporting the engineers and enhancing their quality

values so they could look to the better, by motivating them to participate in the engineering activities including social, cultural training programmes. He advises the new engineers to engage in the activities of the BSE and calls on the Board of Directors to guide the students in schools to study engineering through familiarizing them with this profession in order to supply the BSE with new ambitious generations who will continue working in this edifice. Engineer Jawad concluded his statement by thanking Al Muhandi magazine for this interview, hoping that this meeting will be sort of motivation to others be involved in the volunteer work for the benefit of the profession and community.

In this occasion, the editing team of Al Munhanis magazine would like to express their thanks to Engineer Jawad Al Jabal and wish him success and prosperity.


Should There Be More Chemical Engineering Graduates?This thought piece sheds some light on the question: Should there be more chemical engineering graduates in Bahrain?

The obvious sectors that chemical engineering graduates are likely to join and contribute to include crude oil, natural gas, refining, petrochemical, chemicals and other manufacturing activities. Of course, career opportunities are not limited to these sectors but extend to other sectors like finance, insurance, risk management, government ..etc.

1.1 BAHRAIN OIL, GAS, REFINING AND PETROCHEMICAL ECONOMY

As the following pie chart illustrates, around 45% of the economy is composed of crude oil, gas, refining, petrochemical, chemical and other manufacturing sectors. Furthermore, the largest single sector in Bahrain is crude oil and natural gas with a share of just less than one third of the GDP.

Based on what the International Monetary Fund (IMF) published in October 2014 which is confirmed by the Bahrain Economic Board (EDB), Bahrain GDP grew at 5.3% in 2013 which was driven mainly by the hydrocarbon sector. However, EDB expects that the growth rate of GDP share of the hydrocarbon sector will be slowed down during the next two years, 2015 and 2016. Nevertheless, IMF forecasts the GDP growth in Bahrain to be 3.3% annually over the next five years.

According to the statistics published by the Social Insurance Organisation (SIO), geologist/ petrologist profession stands sixth at the highest salaries ranking of job titles or professions in Bahrain, with an average salary of BD 3,490 per month. However, engineer (chemical, crude oil, natural gas) stands 22nd at the same ranking with an average salary of BD 2,280 per month. The SIO statistics ranks Air Traffic Controller first with BD 6,380 per month while chief executive officer second with BD 5,050 per month. It is worthwhile mentioning that chemical engineering graduates can

Figure 1.1Bahrain GDP Share by Sector, 2011(Source: Bahrain Central Informatics Organization and

GPCA Analysis)

By: Eng. Hasan Al Sheikh

Technical Article

ISSUE 60 June 2015 | 11

assume management positions overtime and hence be regarded as of the best compensated professions in Bahrain.

The following chart shows Bahrain male jobs by category.

The interesting fact is that almost 1% of the Bahraini working males work in the industry that makes up just less than one third of the economy of Bahrain. Moreover, around 6% of the Bahraini working males work in the manufacturing, production and operations activities. The shares of these sectors go even much lower for Bahraini working females with just 1% working in manufacturing, production and operations activities.

Recent data published by the Gulf Petrochemicals and Chemicals Association (GPCA) show that Bahrain accounts for the highest number of nationals working in the petrochemical/chemical industry, with 83% of the chemical workforce being Bahraini nationals.

Bahrain has successfully attracted some of the international players in the petrochemical industries and facilitated setting up their manufacturing facilities in Bahrain International Investment Park (BIIP) such as BASF which opened a state-of-the-art production site for customer specific antioxidant blends (CSB) in BIIP. The list includes other chemicals and plastics producing facilities

Figure 1.2 Bahrain Males Jobs by Category(Source: Social Insurance Organisation (SIO))

1.2 GCC OIL, GAS, REFINING AND PETROCHEMICAL ECONOMY

The opportunities outlook for chemical engineering graduates looks promising in GCC, especially in Saudi Arabia and Qatar with mega petrochemical projects that have been competed recently and many upcoming large projects.

Crude oil and natural gas sector makes up just over half of the economy of GCC. Moreover, refining, petrochemical, chemical and other manufacturing make up around 9% of the GCC GDP. This share will certainly be increased with the commissioning of the upcoming petrochemical projects.

The Petrochemical and chemical industry in the Arabian Gulf region employed 148,900 people in 2013, according to new data published in October 2014 from the Gulf Petrochemicals and Chemicals Association (GPCA). Saudi Arabia’s petrochemical industry employed directly 83,700 people, accounting for over half of the Gulf’s petrochemical industry’s workforce. The United Arab Emirates is the region’s second largest market in terms of people, employing for 38,100 professionals, just over 25% of the region’s chemical employees.

The same data published by GPCA show that employment in GCC in the petrochemical sector has risen cumulatively by 12.2% from 2008 to 2013. Petrochemicals are now the region’s second largest manufacturing sector in terms of contribution to GDP

Figure 1.3 GCC GDP Share by Sector, 2011(Source: GCC National statistical authorities and GPCA

analysis, October 2012)


Figure 1.4 No. of Chemical Engineering Graduates from UoB(Source: UoB website)

and the largest manufacturing employer, after metals, minerals and the food industry.

Furthermore, GCC nationals make up 56% of the industry’s workforce. Bahrain accounts for the highest number of nationals working in the industry, with 83% of the chemical workforce being Bahraini nationals, followed by Saudi Arabia, where 63% of the industry’s employees are Saudi nationals.

1.3 UNIVERSITY OF BAHRAIN (UOB) As the following chart shows, chemical engineering

graduates from the University of Bahrain (UoB) totals 69 graduates during the past 5 years (2009-2014) having an average of 13.8 graduates per year.

The increase in the number of students’ admission in the Chemical Engineering Department of the University of Bahrain seems to be in line with the size and growth of oil & gas, refining and petrochemical industries in Bahrain and in GCC. The number of

admitted students increased from 40 in 2009/2010 to 149 in 2013/2014.

1.4 CONCLUSION Although the oil and gas, refining and petrochemical

industries are relatively smaller in Bahrain compared to these industries in GCC, career opportunities look good with reasonable growth of the economy.

Career opportunities for chemical engineering graduates in GCC, particularly in Saudi Arabia, UAE and Qatar, look very lucrative with the commissioning of the large upcoming petrochemical projects. The increasing integration of the GCC economies accompanied by adoption of new regulations will encourage Bahraini engineers including chemical engineering graduates to join and contribute to the oil, gas, refining and petrochemical industries in the GCC.

ISSUE 60 June 2015 | 13

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Waste Heat Recovery as a Potential CDM Project: Case Study of a Refinery in Bahrain

AbstractWaste heat recovery is an effective measure to improve energy efficiency and reduce greenhouse gas emissions. This is eligible under the clean development mechanism (CDM), one of the three flexibility mechanisms of the Kyoto Protocol. This research use a case study of a waste heat recovery system to be installed to recover waste heat from three gas turbines to produce 110 PSIG steam at 350oF to 380oF. This will lead to shut down three existing gas fired low-pressure (LP) boilers that are working on natural gas. This study aims to assess the viability of waste heat recovery systems in reducing CO2 emissions in a refinery within the CDM of the Kyoto protocol. The study aims also to assess the impacts of removing energy price subsidies, and adding carbon revenues on economic feasibility of energy efficiency projects.

The research used the methodology of “Case Study” to investigate quantitatively the different variables affecting the environmental and economical viability of WHR in a refinery. Using the CDM approved methodology ACM0012 “consolidated baseline methodology for GHG emission reductions from waste energy recovery projects”.

The research concluded that installing three waste heat recovery boilers would save 13,830 MMSCF of natural gas over 10 years. This is equivalent to US$ 20,993,940 at current gas prices in Bahrain. Consequently, 822,406 ton CO2 would be reduced at a cost of US$ 3.82/ton CO2. At a discount rate of 10 %, the Net Present Value (NPV) of installing the waste heat recovery system was proved to be negative. This means that this energy efficiency investment is not economically viable, and thus meets the additionality criteria of the CDM. The analysis indicated that the current subsidised gas prices, nearly less than 25 % of the

international market price, pose a major barrier to improving energy efficiency. If this waste heat recovery project were to register under the CDM, and at a carbon market price of US$ 8/ ton CO2, the project would still be not economically attractive. This means that carbon revenues would not be sufficient to overcome the barrier of severely subsidised gas prices. However, changing the market price of CERs would impact this project’s feasibility. Adding carbon revenues at CER price more than US$ 10/ ton CO2 would improve the economic feasibility and make waste heat recovery investment pay back. The cost of carbon saving due to waste heat recovery would increase from – 3.82 US$ / ton CO2 at CER price of US$ 8/CER to US$ 1,8/ ton CO2 at CER price of US$ 12/CER. Assessing the effect of removing energy subsidies indicated that the waste heat recovery project would be economically attractive. This validates the assumption that reforming energy prices would promote energy efficiency. The analysis showed that at a natural gas price between US$ 6-8 /MMSCF, the project proved to be economically viable under all scenarios of changing discount rate and changing operation and maintenance costs. This means that by removing energy subsidies, the case study would not meet the additionality criteria and could not be registered under the CDM.

This research suggests a number of recommendations and future work including reforming fuel subsidy in order to promote energy efficiency, building national capacity in the field of energy efficiency and emission reductions, establishing and improving the legal and institutional frameworks to tap into the CDM, assessing the potential of waste heat recovery in other industries in Bahrain, assessing the potential of other energy efficiency improvement projects in Bahrain, and assessing the potential CDM projects in different economic activities in Bahrain.

By: Sumaya Yusuf HasanMSc. environmental Management, Arabian Gulf UniversityPhD st, Environmental Engineering, Warwick University

Technical Article

ISSUE 60 June 2015 | 15

Introduction:The energy sector is the largest source of GHG emissions for all Arab countries including Bahrain. GCC countries have the highest levels of the GHGs on per capita basis. This is due to the high levels of percapita income, accelerated rate of industrialization, energy use, scarcity of water resources and climate conditions. (ESCWA and League of Arab State, 2005). BAPCO, an integrated oil & gas company, operates the Bahrain refinery. It is committed to efficient use and conservation of energy within the whole Company. The energy conservation policy supports BAPCO’s commitment to environmental improvement by reducing the consumption of resources and of emissions to the environment.

It is proposed to install a waste heat recovery boiler (WHRB) on each gas turbine to recover the waste heat and produce 110 PSIG steam at 350oF to 380oF. This will lead to shut down the existing gas fired low pressure (LP) boilers that are working on fuel.

In this study, the economical and environmental feasibility of waste heat recovery within the CDM were assessed using the approved CDM methodology (ACM0012) “Consolidated baseline methodology for green house gases (GHG) emission reductions from waste energy recovery projects” will be used in the analysis.

Study Problem There is a waste in energy in the form of heat which is un-recovered around the gas turbines. The three Power Plant gas turbines generates a total output of 30 MW compared with a base design output capability of 48 MW. Exhaust temperature ranges between 700o to 710oF. On the other hand, the LP boilers are using natural gas to produce 110 PSIG steam. They emit CO2 which is a major green house gas that contributes to global warming in addition to other air pollutants such as CO, NOx, and particulates which contribute to degradation of local air quality.

Study SignificanceInstallation of a waste heat recovery boiler (WHRB) facility on each gas turbine to produce 110 PSIG steam at 350oF to 380oF (superheated steam) will lead to shut down the existing gas fired LP boilers. By shutting down the boilers, natural gas will be saved and CO2 emission will be reduced. If the project proves to be eligible for CDM, carbon reduced could be traded internationally leading to reduction in project costs.

This study will be the first of its kind in Bahrain to use an approved CDM methodology to assess the potential of waste heat recovery within the CDM. The results would be beneficial to BAPCO and other industries in Bahrain which have a potential of waste heat recovery. It could also contribute to

the mitigation assessment of GHG emissions in Bahrain.

Study ObjectivesThis study aims to assess the viability of waste heat recovery systems in reducing CO2 emissions in a refinery within the CDM of the Kyoto protocol.

To achieve these objectives, the study will:

a) Estimate the CO2 reduction due to WHR.

b) Estimate the cost of CO2 reduction, and cost of energy saved ($/ton CO2)

c) Assess the economic feasibility of WHR systems in the case study, under different economic variables.

d) Assess the eligibility of the case study under the CDM rules.

e) Assess the effect of carbon trading in the economic feasibility of the WHR projects.

MethodologyThis research used the methodology of “Case Study” to investigate quantitatively the different variables affecting the environmental and economical viability of WHR in a refinery. Use the CDM approved methodology ACM0012 (Figure 1) “consolidated baseline methodology for GHG emission reductions from waste energy recovery projects” project activity, to calculate the baseline emission from thermal energy and then calculate the fuel saving in m3 and cost due to shut down of LP boilers. and calculate the NPV.

Figure 1: The CDM project Scenario Source: BAPCO


Approved Consolidated Baseline and Monitoring Methodology ACM0012 Calculation of the Emissions and the results are shown in Table 1

Figure 2 shows the comparison between the Baseline emissions and the Project emissions. The emission reductions are shown obviously.

Figure 2: Comparison between the Baseline emissions and the Project emissions.

Table 1: Estimation of Emission Reductions due to Project Activity

Year

Fuel consumption reduction CO2 reduction

Total Cash-In

Flow ($)

Total Fuel Consumption by LPBs & GTs

(MMSCF)

Fuel saved (MMSCF)

Fuel cost ($/MMSCF)

Fuel cost saved ($)

CO2e Reductions -CERs from

shutdown of LPBs (tCO2e)

Expected CER price ($/tCO2e)

Expected CER revenue ($/

year)

2009

2010

2011 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2012 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2013 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2014 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2015 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2016 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2017 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2018 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2019 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

2020 7,589 1,383 1,518 2,099,394 82,241 10 822,406 2,921,800

75,890 13,830 20,993,940 822,406 8,224,062 29,218,002

Results and Conclusion:1. Installing three waste heat recovery boilers would save 13,830 MMSCF of natural gas over

10 years. This is equivalent to US$ 20,993,940 at current gas prices in Bahrain. Consequently, 822,406 ton CO2 would be reduced at a cost of US$ 3.82/ton CO2.

2. At a discount rate of 10 %, the Net Present Value (NPV) of installing the waste heat recovery system was proved to be negative. This means that this energy efficiency investment is not economically viable, and thus meets the additionality criteria of the CDM.

3. The feasibility results proved not to be sensitive to variations of discount rate at a rate of 8% - 12% and operation and maintenance costs.

4. The analysis indicated that the current subsidised gas prices, nearly less than 25 % of the international market price, pose a major barrier to improving energy efficiency.

5. If this waste heat recovery project were to register under the CDM, and at a carbon market price of US$ 8/ ton CO2, the project would still be not economically attractive. This means that carbon revenues would not be sufficient to overcome the barrier of severely subsidised gas prices.

6. However, changing the market price of CERs would impact this project’s feasibility. Adding carbon revenues at CER price more than US$ 10/ ton CO2 would improve the economic feasibility and make waste heat recovery investment pay back.

7. The cost of carbon saving due to waste heat recovery would increase from – 3.82 US$ / ton CO2 at CER price of US$ 8/CER to US$ 1,8/ ton CO2 at CER price of US$ 12/CER.

8. Adding carbon revenues would improve the economic feasibility between 84% and 215 % at the subsidised gas prices.

9. The effects of discount rate on the same project feasibility under different carbon market prices revealed that by decreasing the discount rate, the NPV of the project cash flow would increase. This means that lower discount rates would attract investment to the energy efficiency market.

10. Assessing the effect of removing energy subsidies indicated that the waste heat recovery project would be economically attractive. This validates the assumption that reforming energy prices would promote energy efficiency.

11. The analysis showed that at a natural gas price between US$ 6-8/MMSCF, the project proved to be economically viable under all scenarios of changing discount rate and changing operation and maintenance costs. This means that by removing energy subsidies, the case study would not meet the additionality criteria and could not be registered under the CDM.

Recommendations:This research suggests the following recommendations and future work:

• Reform fuel subsidy in order to promote energy efficiency. Shut down one or more of the high pressure boilers (HPB) in BAPCO’s power plant that produce steam to be replaced by the waste heat recovery boilers steam which will save more energy and reduce more CO2.

• Build national capacity in the field of energy efficiency and emission reductions.

• Establish and improve the legal and institutional frameworks to tap into the CDM in a manner commensurate with the national interests.

• Assess the potential of waste heat recovery in other industries in Bahrain.

• Assess the potential of other energy efficiency improvement projects in Bahrain.

• Assess the potential CDM projects in different economic activities in Bahrain.

References missed

ISSUE 60 June 2015 | 17


From energy production to energy management: the critical challenge for the GCC economy to 2030

AbstractThe GCC economy has enjoyed more than a decade of unprecedented economic growth. Most of the growth has been derived from higher oil and gas production and record oil and gas prices.

Forecasts for the next decade suggest that global energy prices are more likely to fall than rise and that demand for GCC hydrocarbon exports will be displaced by rising production and exports in other OPEC states; growing conventional and unconventional oil and gas production in non-OPEC states and higher domestic crude and refined product consumption.

Policymakers, consequently, are facing the challenge of delivering growth, lifting living standards and creating new jobs in an environment in which the main source of growth since 2002 – a higher volume and value of hydrocarbon production – will no longer be present, at least for five years and possibly for longer.

This article identifies the macroeconomic challenges the GCC will face in the years to 2018 and beyond the will emerge as a consequence. It will also identify the critical issue the GCC economy will face in the new era for the kingdom: increasing efficiency in general and energy efficiency in particular.

The GCC economy 2003-12The GCC economy boomed in the decade that started in 2003 due to higher oil and gas production and exports and the sharp rise in global energy prices. Chart 1 (Source: MEED) shows GCC oil production and prices in this period. Output rose from just over 13m b/d in 2002 to more than 17m b/d in 2012 when GCC oil production on average was at an all-time high.

The oil price in this period rose even more significantly. In 2002, the average price of GCC crude oil was under $25 a

Chart 1GCC: oil production and price, 2002-12

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17

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11

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7

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02002 2005 20082003 2006 2009 20112004 2007 2010 2012

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By: Edmund O’SullivanChairman, MEED

Technical Article

ISSUE 60 June 2015 | 19

barrel. In 2012, it averaged $110; a record high. The rise in oil prices and production reflected several factors including strong global energy demand, the elimination of Iraqi oil production in 2003 and its slow recovery thereafter.

The sharp rise in GCC oil prices and production delivered a startling increase in GCC hydrocarbon export earnings in 2002-12. Chart 2 (Source: MEED) shows that GCC oil export earnings in 2002 were about $100bn. In 2012, they were estimated by MEED at more than $600bn. GCC current surpluses totaled more than $1.8trn in 2003-12. These trends

also expressed themselves in a dramatic increase in the aggregate GCC current account surplus, which rose from just over $20bn in 2002 to $380bn in 2012 (see Chart 3). GCC governments also enjoyed substantial and growing budget surpluses in the period.Aggregate GDP echoed developments in oil export earnings and the current account. Chart 4 (Source: MEED) shows that GCC GDP grew by a compound

annual rate of 15 per cent to almost $1.6trn in 2012 from about $400bn in 2002.

Oil markets to 2018 and beyondConsensus forecasts to 2018 suggest that world oil demand will continue growing by about 1 million b/d a year. The oil price, nevertheless, is expected to fall gradually in this period to about $90 a barrel. This will reflect the rise in global oil production, particularly in non-OPEC nations; the impact of the return of Iranian oil after sanctions are lifted; the increase in Iraqi production, which could hit 6m b/d by 2020; the end of supply disruption in Libya and the impact of the US heading towards energy self-sufficiency in part due to rising unconventional gas production.

Chart 2GCC: oil export earnings, 2002-12 ($bn)

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02002 2005 20082003 2006 2009 20112004 2007 2010 2012

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Chart 3GCC: current account, 2002-12 ($bn)

Chart 4GCC: GDP growth 2003-12

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Chart 5GCC: oil prices and production 2013-18

The GCC, and particularly Saudi Arabia, is expected to contain oil production to stabilise prices. MEED’ s forecast is that total


GCC oil output will fall to about 16.6m b/d in 2018 compared with more than 17m b/d in 2012 (see Chart 5). This will produce a fall of almost 20 per cent in GCC oil GDP in 2018 compared with 2012. Given that the oil sector accounts for about half of GCC GDP, these trends will reduce GCC GDP, all other things being equal, by up to 10 per cent. In addition, GCC domestic oil demand is forecast to grow by at least 2 per cent a year in the period. This will cut oil exports by a further 200,000 b/d. The conclusion is that GCC oil export earnings in 2018 could be as much as $300bn lower than they were at their peak in 2012.These trends mean that the GCC non-oil sector’s going to have to grow by at least 10 per cent annually to deliver desired increases in per capita GDP in the years to 2018.

Getting more out of the GCC’s capital stockThe conclusion is that the GCC oil and gas sector will face declining returns on investment in the years to 2018. Possible remedial action will centre on getting existing investments to produce more value by improving their efficiency. This will involve:

• Increasing labour productivity in the GCC oil and gas sector. Training and the use of labour-saving technologies will become more important for the GCC energy sector in the years to come. These priorities will be conditioned by the growing pressure for the oil and gas sector to continue to employ more nationals.

• Increasing the efficiency of the energy sector. The key priority for the economies of the GCC will be getting more from what they have got, both in the oil and gas sector and other parts of the domestic economy.

The energy challengeMEED forecasts show that GCC demand for electricity will grow by at least 5 per cent a year on average to 2030. It is projected that this will require an installed electricity generation capacity of almost 300GW, about 150 per cent higher than it is now.

The consequences of demand growing at this rate are:

• On present trends, up to a third of GCC oil and gas output will be used in power production in 2030

• A growing proportion of GCC financial, technical and human resources will be devoted to the electricity sector

• Carbon emissions will grow

• Environmental impact will be unsustainable.

Action points for addressing the GCC energy management challenge

The GCC needs to develop a coherent long-term strategy to promote effective energy management. The action points are:

• Quantify the challenge. This will involve defining the scale of existing and future energy use and areas for effective energy-saving action

• Increase the sustainability of the built environment. The built environment is the principal location of energy waste in the GCC. Action in this area needs to increase across the region.

• Increase the efficiency of the domestic energy supply chain. GCC governments need to have a better

2012 2020F 2030P

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Chart 6GCC: installed electricity generation capacity

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Chart 7The Saudi Arabian energy balance

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“Other includes :Agricultural sectorHospitals???

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Total energyconsumed

in KSA

ISSUE 60 June 2015 | 21

understanding of the linkages in their domestic energy supply chains from oil and gas production to final use.

• Invest in renewables. Selective investment in efficient renewable energy production will make a valuable contribution to GCC energy management.

• Aim to make the GCC the world’s most energy-efficient region.

Quantifying the challenge

The chart below shows the proportions of total energy production used in different parts of the Saudi economy. It also shows the linkages among the main sectors. Saudi Aramco is the sole source of all feedstock used in the kingdom’s domestic energy system.

Similar conceptual work needs to be done in all GCC states. This will facilitate effective decision-making about government investment and regulation and where private investment and initiative can be most productively applied.

Addressing energy waste in the built environment.

On a global level, buildings are responsible for:

• 12 per cent of water use

• 40 per cent of greenhouse cases

• 65 per cent of waste

• 70 per cent of electricity

According to the Fraunhofer Institute for Building Physics, measures that increase efficiency in the built environment have a potential which is greater by a factor of ten than what renewable energies could contribute to energy generation.

There is evidence that the challenge of reducing energy waste and increasing energy efficiency in the built environment is securing high-level attention in GCC countries. All GCC states already have compulsory building codes that require building owners and developers to cut waste and increase efficiency. Such codes, however, have not been rigorously applied and new projects are being developed that still fall short of requisite energy efficiency standards.

All GCC states are welcoming the introduction of international green building codes such as LEED and Breeam. Abu Dhabi, Dubai and Qatar have developed their own green building methodologies. The application of such codes is growing across the region, but only Abu Dhabi has so far ruled that a

green building rating (Estidama) must be secured for all new buildings.In Saudi Arabia, the green building initiative is developing around specific projects such as the Princess Noura University and the King Abdullah Financial District in Riyadh.

The green cityThe Royal Commission for Jubail & Yanbu has developed a coherent, long-term sustainability programme that is designed to make the cities it’s responsible comprehensibly sustainable. The measures taken include;

• Planning standards

• Architectural standards for all residential units

• Initiatives to

• Cut carbon production

• Rationalise water use

• Modify illumination

• Reduce the impact of geothermal heat

• Rehabilitate existing buildings

• Install solar panels

• Set up green building codes

• Develop waste into energy

• Improve efficiency of electrical parts.

The Yanbu Green City programme in Yanbu Industrial City has produced significant results including:

• A cut in energy used in street lighting by 16 per cent

• The replacement of all conventional illuminations with LED systems that save 60 per cent of road lighting energy

• A new building code

• The introduction of district cooling

• A unified communications network to monitory energy use

• An integrated technology services programme

• A solar power generation project from the roofs of buildings plus energy conservation programmes.

The Yanbu Green City’s plans include developing an energy-efficient policy document and energy awareness programmes.


The green company

Saudi Aramco is establishing itself as the GCC’s premier green company. The company produces about 2GW of power and consumes 3GW. Its initiatives have included:

• Converting all its power stations to 100 per cent cogeneration

• Selective use of solar power. Saudi Aramco has the largest grid solar-power network in the GCC, producing 10MW for car-parking and other facilities

• A lead-by-example programme to cut non-industrial energy consumption by 30 per cent by 2020 (equivalent to 5 per cent of total).

Towards a Green countryThe most advanced energy-management countries are developing energy management at a national level that offer models for the GCC to emulate.

Germany is perhaps the world’s leading green nation. In addition to introducing energy-management measures, the German government has identified green industries as an important source of potential growth and employment. In 2002-2004, German researchers and companies submitted around 40 per cent of global patent applications in the area of energy efficiency. The German government believes green technologies drive exports and create jobs. Germany is a world-leader in heating systems and insulated glass. The global condensing boiler market is dominated by German firms. Energy management has so far cut energy costs by up to $450bn. And carbon missions have been cut by up to 80m tonnes a year.

Cutting energy and water use in the GCC

After the built environment, the electricity and water supply chains in the GCC offer the richest potential for energy savings. The priorities include:

In the electricity supply chain:

• Alternative energy sources. This includes selectively switching from oil feedstock to gas in electric power generation and examining the potential for capitalising on renewable energy sources, including solar

• Combined cycle power capacity. All single-cycle power generation capacity should be upgraded or closed down

• Delinking desalination from power generation. Thermal desalination is an extremely costly way of producing water. New technologies are offering alternative ways of processing seawater

• Upgrading electricity control systems

• Improving the efficiency of transmission system

• Developing smart grids

• Introducing effective metering and billing systems

• Targeting tariff increases to commercial sectors

• Enforcing building codes, particularly on insulation

• Upgrading AC systems

• Moving to district cooling.

The water supply chain is a major user of energy in the GCC. In the water supply chain, the priorities are:

• Developing alternative water sources. This includes action to:

• Capture surface water

• Reduce thermal seawater desalination

• Make sound use of groundwater resources

• Use treated sewage effluent (TSE).

• Building potable water storage, including by making use of depleted groundwater reservoirs

• Upgrading the water transmission system pumping network

• Upgrading sewage collection and treatment systems, including by building gravity-based deep tunnel sewers

• Developing the TSE market

• Developing leak detection and repair systems

• Introducing billing and metering

• Rationalising water use in agriculture.

GCC renewable energy capacity 2012-20 (MW)

2012E 2020F Increase

Saudi Arabia neg 3,000 3,000

UAE 10 2,600 2,590

Kuwait neg 1,800 1,800

Qatar neg 500 500

Oman neg 400 400

Bahrain neg 50 50

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The oil and gas supply chain

Considerable energy savings are still possible in GCC oil and gas sectors. Actions should include:

• End flaring of associated gas

• Upgrading the oil and gas pumping network

• Upgrading process units including refineries

• Using all refinery production

• Improving energy efficiency of the oil and gas supply chain

• Addressing non-industrial energy uses.

The role of renewables in the GCC

Renewables will meet a minority of future GCC energy use. Nevertheless, the proportion of to the total energy used accounted for renewables will grow significantly by 2020 (see table). MEED estimates that the electricity generation capacity of new GCC renewable energy units will increase by more than 8GW between the start of 2014 and the end of 2020

ConclusionIncreasing efficiency is now one of the top macroeconomic issues facing the GCC.

The returns on energy management are potentially enormous. If the energy efficiency of GCC economies were to be increased by 50 per cent in the next 20 years, the region would enjoy a balance of payments and fiscal dividend worth hundreds of billions of dollars a year. The job-creation potential is considerable.

Such action would reduce the need to borrow to maintain the pace of development across the region and allow GCC government and domestic savings to be applied productively at home and abroad.

Energy efficiency will also deliver quality of life benefits by helping to make homes, offices, hotels and factories more comfortable to live and work in.

Energy efficiency introduced effectively in the GCC will radically reduce the region’s carbon emissions at a time of growing concern about the impact of global warming.GCC governments and the GCC private sector should collaborate to develop a long-term energy management programme designed to make the region the world’s most efficient producer and consumer of energy.

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Delivering Strategic Success: Optimizing the role of the Operations Department in Portfolio, Program & Project Management within the Public Sector

IntroductionThis article presents a study of the strategic role of an operational arm of public sector organizations and its role in all stages of project selection and project lifecycle (from initiation through implementation to handover) in project, program and portfolio. Public sector refers to “The part of the economy concerned with providing basic government services – health, education, water and sanitation, electricity, transport and provide the opportunity to live and work in peace and security (The World Bank, 2012). It will discuss the key challenges as operations struggle to satisfy customer requirements with a product that is not fully appropriate or fit-for-purpose. For example, aging assets and infrastructures, cost escalation, limited resources, productivity, acute regional development, environmental issues and sprawling growth are causes of customer dissatisfaction. [Pakkala, P: 2002] For the public sector, customer dissatisfaction is the primary driver of strategic failure and the cited causes are rarely addressed during the project lifecycle before handing the assets to the operation department. Consequently, operations must manage the assets with resource and other constraints, which lead to heightened customer dissatisfaction.

Each dimension of the project, such as cost, resources, and risks for example is changing with time in order to cope with a complex and hybrid environment (PMI-AGC, 2012), and so require more robust processes, methodologies and frameworks, tools, techniques and disciplines. For organizations that are carrying out a large number of projects, especially where budget is a constraint, but all those projects need to be kicked-off, the question arises ‘which one should be start first’? How do organizations determine what should be the best criteria, particularly in a government organization where criteria have to be clear in order to contribute to goals set within the national strategies. What role do the business units, particularly the operations department, play in selecting and prioritizing projects? Currently the role is unclear, as project selection is often carried out in a more-or-less intuitive way, even though the benefits of systemized, criteria based project selection can mark the difference between organization success or failure (IPMA, 2011).

Each of those projects needs to be seen as a group of related projects and should be managed as programs to be able to

Saliha IsmailHead Strategic Projects

Project Management Office

Ministry of Works

Anisa KhalafChief Project Management Section

Sanitary Engineering Operation & Maintenance

Ministry of Works

Technical Article

ISSUE 60 June 2015 | 25

maximize the current resources and to realize the benefits post execution. It enables the fundamental question of how it fits in the corporate strategy. Program management also allows for a top down planning of programs and projects in a rational and coherent way (maxwideman.com 2002) to either delay, accelerate or bring forward, based on the use of current and available resources (people, money and assets) and future needs. In particular, understanding how those projects that will be transferred to the operation department are to be managed and operated post-handover. As well as considering how they will be managed, it is also important to ask what planning must operation departments do in advance of project handover.

Operation departments in some organizations are regarded as a client, due to their becoming the end user of the project. Therefore the role of the operations department in projects should be considered the most important in describing the problems that needed to be resolved, both in ergonomics of operations and resource planning and management. After all, when projects are completed, someone has got to take over the operation and management of the physical assets. In some other industries such as healthcare and hotel industries, most projects do not get a go ahead without identifying the operator first. Taking all this into account and the current practice of the operation department in the government sector, this article aims to underline and identify the gaps in the project, program and portfolio management to initiate transformations to bridge those gaps. One thing to note is that this article does not draw on the technical treatment, rather provides the suggested governance and processes as a guideline as part of identifying those gaps; specifically, the role of the operation department. It will emphasize the importance of the operation department as the end user or Client/Operator throughout the execution of portfolio, programs and project lifecycle and management. The purpose of this article is to highlight the following:

• Portfolio management: The importance of the operation department’s role in prioritizing projects, and selecting the right projects through the right criteria to ensure only valued projects are selected

• Program Management: shedding some light of what the business is trying to achieve by optimizing resource allocation for projects in the overall program management of projects and operations and finally achieving the benefits. What role the operation department plays in program management?

• Project Management: Operational requirements for the project for proper scoping of the project. Resolving/

addressing current issues that are faced by the Operations Department, by highlighting that they need to be addressed early in the project.

Operation’s Role in Project Selection Process in Portfolio ManagementProjects come about in many ways and limited foresight is undertaken to deal with key issues for the economy, society and environment that can offer valuable insights and solutions (BIS, no date). Projects usually emerge as a respond to immediate concerns, both internal and external. Internal reasons can be political, or aimed at improving general management and processes and culture by splitting or merging ministries. External pressures can come from the emergence of a new policy as a priority as the governments are required to provide more individualized services to citizens (BIS, no date), such as public safety or a result of public complaints through the media. It is important to note that the government sector is not primarily focused on revenue generation, rather on the quality of the services that it delivers. The justification of costs is more important than the potential for revenues (Cohen, 1999).

In view of these, a strategic approach to project selection and prioritization will yield better results for organization by having a consistent criterion that will minimize risks and maximizing the potential upside, especially for organizations that are concerned with limited resources. Effective and efficient use of resources should be manipulated to avoid unnecessary costs (Ismail 2008). A simple and widely used model of Portfolio Management framework or a Stage Gate Review Model (Stage-Gate Int. 2006) developed by Dr Robert Cooper and Dr Scott J. Edgett in 1996 will help to answer some of the key questions regarding project selection within the public sector, most notably:

• Are we investing the right things?

• Are we optimizing the right capacity?

• Are we realizing the promised benefits? (EPMC, no date)

FIGURE 2 below illustrates the Stage Gate Review model that have been modified for construction industry by Fish et al (2011) and shows how ideas go through several stages before materializing as a project. Depending on the nature of the organization, the number of gate reviews may vary from two to three gates and the criteria and metrics that have been set at each gate. Each Stage has its own objectives, purpose and deliverables. Choosing the right projects should depend on the following requirements, which in common opinion are


PPM is also about what information is needed at which stage and factors that have direct impact on operations must be considered within the government sector, especially for organizations such as the MoW, whose core business is completing projects and then transferring the final products to operations. Upon agreement on this criteria and metrics, the evaluation can then move forward to the next stage of presenting the alternatives that provides the most suitable solutions before proceeding to scoping out the projects and issues the projects intend to resolve. Evaluation for alternatives should include constraints and risks to the organization, such as time, resources (cost and people) and milestones to achieve the strategy. Potential risks of whether the project should accelerate, deferred or killed should also be

PPM is fundamentally about choosing the right projects (Lennon, C. 2008) and the main focus should be on the alignment of strategies in projects and investments. Therefore a set of criterion needs to be set in order to choose the right projects. In spite of this, organizations need to tailor those criteria to suit their organizations. To be effective, and in the authors’ opinion, the operations department’s contribution to the Business Assessment as shown in FIGURE 3 below should also include the following requirements:

• Assets – current assets that are in operation and the locations – usage, capacity, age of assets.

• Economic condition – funding, value for money, effective cost in operation.

shared by Levine (2005), Sommer (1999), Cooper et al (2001) and Ismail (2007):

• Alignment with corporate strategy – if projects are not aligned with the strategy, they will not contribute to the implementation of strategy

• Maximizing the value – utilizing the financial and resources effectively to achieve maximum value of the portfolio

• Balancing – like financial investment, project portfolio requires balancing of risks and return (Cooper et al, 2000; Levine, 2005) for long term and short term benefits, time to completion, competitive impact and others.

• Directly or indirectly contributed to the cash flow

• Appropriate organization value and culture

• Projects not only contributed to short term but also long term development.

FIGURE 2 – Project, Program and Portfolio Management (PPM) FIGURE 3 – Assessment Criteria from Operations

• Social – population growth, present and future needs.

• Environmental – reuse of the byproducts, better living condition, and impact to environmental including marine life.

• Technology – current and future technology and the resources managing those technology.

• Process management – operational process management from beginning to end for the finished products.

• Impact on other Master Plans – such as Road and Buildings Master Plans and from other governmental agencies.

• Legal system – current and future regulation and governance.

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FIGURE 4 – Project Selection & Program Management FIGURE 5 – Operation’s Role in Program Governance Lifecycle

FIGURE 6 – Operation’s Role within the PPM

considered as part of assessment and evaluation before going forward. This is as illustrated in the FIGURE 4 below:

This is where program management kicks in to determine the best options analysis based on the previous criteria to be able to commit, plan and align the resources and capabilities needed for those projects in order to achieve the maximum benefits.

Operations Role in Program ManagementYet, it is important to distinguish between program management and portfolio management as it is obvious that both appear to be inter-related and often used to do the same nature of work. There are many views of what portfolio and program management is. The most common views of their differences is that PPM is used to select and prioritized programs whereas program management is more about managing programs (Lennon, 2008). Indeed, this is further defined in the PMI’s PMBOK of Portfolio Management. As with portfolio management, programs also need to have formulated their own vision, aims and objectives, scope, design, approach resourcing, responsibilities and benefits realizations. Programs also are concerned with providing the right capabilities to achieve business benefits.

For example, when building roads or highways, often sanitary networks and other services are not in the plan for the reasons that the project is of less priority to other directorates. This often causes the completed highways/roads to be opened up to lay other network services. This is common in government sectors around the world where coordination is one area in which construction traditionally is perceived to perform badly (Cooper et al, no date), simply because they are not managed

in a coordinated manner. For this reason, PMI provides an excellent way of how programs can be managed as shown in FIGURE 5 below.

As reiterated, it is important to have a consistent way of managing those programs within the portfolio; especially that they vary in size and complexities. Program management is needed to allow organizations to run multiple related projects concurrently and obtain significant benefits from them as a collection (Haughey, 2001) as there are huge benefits of using a consistent way (PMI, Haughey 2003 and Maxwideman, 2011). Nevertheless, the cited benefits can only be realized when the product is delivered, operated according to the plan where the resources and capabilities needed then are applied. Particularly, for the operation department it is not about managing the projects, rather providing and managing the program governance needed for the future products or assets as part of achieving the organizations strategic objectives. What is vital after identifying those projects within those programs especially for operation department would be to identify and plan the list of needed capabilities. The role of operations is explained in the Figure 5 above.

Within the program governance (FIGURE 5) from program identification through to program closure, the role is explained in relation to the PPM to the Figure 6 below, by planning and providing a Program Charter according to what is the business is trying to achieve.


FIGURE 7 – Project Management – The Role of Operation Department

For operations department, once the projects have been prioritized and selected, this will be the most important in their management of the program phases to be able to deliver the incremental benefits to those programs and MoW’s portfolio. As explained in Figure 6, The Program Charter concentrates on delivering some or all of the following:

• New capabilities and services• Business Plan• Strategic objectives• Change• Other initiatives

Operation’s Role in Project Operations management is about how organizations produce goods and services (myomlab.com, no date). In fact, in a simplistic way, everything that are related to our daily lives is connected to operations, directly and indirectly, which have been built or produced either to aid or to enhance our life. So are projects or so-called ‘products’ when completed and are built for something or someone.

Success or failure or products depend on the how operational challenges were addressed, such as department stores, hotels, schools, hospitals, etc. It also means when delivering projects, the organizations that produce services must always have a responsible officer for operations’ management as one of their core team members.

Regrettably in the construction industry the definition of a project has traditionally been synonymous to actual construction works. As such, pre-construction activities have been sidelined and often accelerated to reach the construction stage or to move on to the ‘new job’ (Cooper et al, no date).

It is at this point when it is discovered that it is already too late to address the operational requirements, thus massive changes to the project often happen. This is a result of weak Client requirement identification that has resulted in poor asset delivery especially in sanitary operations, as perceived through the authors’ observations.

As written by Morris (1998) “ that time spent up front in defining needs, exploring options, modeling, testing and looking at different business benefits is central to producing successful project”.

Indeed, Morris further suggests that defining the problem is half the solution: 90 percent of the outcome is defined in the first 10 percent of the project. Just as important, the organization must understand the way it manages the

network of operations that design, produce and deliver its products and services and it must be right for their customers.

Therefore working effectively with the project teams to contribute to the whole of the project aims is one of the most important responsibilities of the operation department, as the common purpose is “how can we visualize the operation activity?” (MyOMLab, no date).

For the project team, their end user will be the operation department; however, for the operation department the public at large are their end users. Therefore, especially in sanitary, process management plays a vital role in how the products are chosen, managed and delivered.

For operations department, it needs to undertake parallel activities whenever project is activated and necessary interfacing with the project teams when it comes to addressing some of business and technical requirements. It is not just about identifying the project requirements according to the need and issues.

Defining project requirements and most importantly operational requirements is vital, to ensure that the final delivery is met. Managing the operations in government departments is essentially similar as any commercial organizations. They have to make the same decisions – how to produce product and services, invest in technology, contract some of their activities, devise performance measurements, improve their performance, etc (MyOMLab.com, no date).

Figure 7 above illustrates the recommended process that should be undertaken by the operation department as parallel activities following the project lifecycle. More importantly, those activities (Figure 7) will assist to answer some of the

ISSUE 60 June 2015 | 29

key questions that need to be addressed in project:

• Do we have sufficient operational requirements to support projects?

• How is the staff assigned to projects and which staff, where and when? This will help clarify the roles and responsibilities so that everyone knows what is expected of them when it comes to supporting projects.

• Have we met the operational staff requirements to receive the completed projects, and so on?

The completion of a project requires input from a variety of groups including the project team, the Client, and the end user, which is the operations department. Each party has a role in defining and determining success, specific tasks and responsibilities that they must fulfill to achieve success (Kumar, Munns & Bjeirmi, 1996). So is operation department, as a Client/Operator who is the main party concern in determining the success of the project in the long term (Munns & Bjeirmi, 1996). They cannot expect to relinquish responsibility by passing all duties to the project team, rather ensuring their own operational requirement are in place and addressed during the project lifecycle.

ConclusionUndeniably, what is clear from the discussion is that “we can no longer sustain the old ways of doing work when we know there are new and efficient ways of getting the job done” (Marr, B & Creelman, 2011) to deal with complex environment of today. Every department in the organization has roles to play in order to contribute to organizations’ existence and success, particularly for the operation department in the project, program and portfolio management environment. In conclusion, two subjects become clear and are recommended that organizations should put in place are:

• Consistent frameworks in project, program and portfolio management are needed to align organizations to their strategic objectives. The worst situation is employing no framework – but a gut feeling, political decisions or a short-from-the-hip-approach. In short, any framework is better than no framework at all (Cooper, 2012)

• Having clear governance in the project, program and portfolio management in particular for the Operation department as they are the Client/Operator of delivered end products. Without the governance within these frameworks, the success is only halfway.

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Bahrain Training Institute Building

Academic buildings constitute a important element in society’s wealth, and main source of quality of education, emphasized more Seaagesan, of education planners and the importance of upgrading the quality of academic buildings their direct impact on education of students, and upbringing and develop their abilities to serve the community. Education is not just a strategic priority in its own right; it is also directly related to achieving another key aspiration of the Economic Vision 2030 for Bahrain: economic competitiveness. The quality of education and educational outcomes will hugely impact Bahrain’s capacity to drive and adjust to changes in the economy, government and society. The importance of education has already been recognized in the National Education Reform Initiatives that have been implemented since mid-2007 And we will address this topic about a project educational complex in Bahrain Institute.

The Project Objective:Since its’ establishment in 1992, Bahrain Training Institute (BTI) Is aiming for qualifying people to beready for jobs available in the market and train them in various disciplines to meet the market needs. Hence the demands on the skilled workers is progressing the BTI intended to increase the capacity of the institute by 40% to comply with the market needs. Accordingly the institute intends to improve the educational services in terms of buildings, facilities, electronics systems and devices in order to facilitate delivering knowledge and elevate the educational outcomes and environment. Therefore, the design of the master plan has been developed in phases that suit the BTI Strategic Planning Vision for the next 20 years. The development includes five phases starting with phase one that consists of two academic blocks.

Projects

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The Design Concept:The design of the academic buildings is based on Form follow Function concept. The interior layouts of the buildings are ensuring the readability in order to facilitate the movement during emergencies and simplify the use by occupants. The future needs of expansion are considered in designing both buildings as well as reflection contemporary architecture by its modern elements (Aluminum coping and fins), details, systems and equipment’s.

The Project Description:The relationship of internal spaces in both buildings is very simple to facilitate the circulation. The main entrances foyers contain the vertical circulation elements such as lifts and staircases and are connected to main corridors which lead to class rooms, laboratories, administrative offices and other services. The emergencies staircases and exits are allocated in buildings’ corners to facilitate the evacuation. An open roof terrace at the second floor is created to be used for various activates and for future extension purposes. The facades design is adopting the contrast concept between the solid and the glass. The relationship of the horizontal and vertical line creates a visual rhythm and emphasis dynamic and vital affects which enhance the architecture aesthetics of the buildings.

Building component as a part of vertical element incontemporary architecture design

Vertical element- Wind Tower in traditional architecturedesign as a significant function and design solution


The Project Main Elements:The project comprises of 2 Academic Blocks as follows:-Academic Block – 1 is for the Engineering & Language Faculties that accommodates 33 classrooms and 33 laboratories for the Civil, Mechanical, Electrical, Electronic and Chemical Engineering Divisions and 12 classrooms and 2 laboratories for the Language faculty within a 3 storey building. Common facilities such as the Administration offices, Meeting Rooms, Staff rooms & Pantries, Prayer Rooms, toilets and stores are also provided for the buildings.

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Learning To SeeValue-stream mapping to create value and eliminate mudaWritten by: Mike Rother & John Shook

Reviewed by:

Sayed Ali Hashim

The book reviewed is a part of a lean tool kit workbooks published by the Lean Enterprise Institute (LEI - www.lean.org), which is a non profit organization founed in 1997 to promote the principles of lean thinking in every aspect of busines and across a wide range of manufacturing and service industries. The major intent of this toolkit is to create a guide for lean thinkers to use in transforming traditional businesses. “Learning to see” is not a common terminology in the lean domain, infact it’s just an indication to one of lean’s strongest tools; Visual Stream Mapping (VSM).

For those who’re new to Lean. Lean is nothing but a method of running any organization, system, business where the values are driven from it’s customer to achieve continuous improvement and eliminate waste in each & every part of the system. Toyota was the original inventor of this method which was called initially Toyota Production System (TPS), but was later labelled as Lean to avoid any misconception that it is only confined to cars or manufacturing domain. Waste or muda elimination & continuous improvment are the basic objectives of any lean organization operating on a foundation of standardized work. (Fig1)

As per the toolkit VSM is one major tool that has to be started for implementation before any other lean tool application (Fig2), because it’s a tool that enables seeing acroos the boundaries over which a product’s value-stream flows and make change happen there. Value-stream improvement - “flow kaizen”- is managment doing kaizen.

Book Review

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The Value stream is all the actions (Both value & non value added) currently required to bring a product through the main flow essential to every product: (1) the production flow from raw material into the arms of the customer, and (2) the design flow from concept to launch. Taking a value stream perspective means working on the big picture, not just individual processes, and improving the whole, not just optimizing the parts. The major steps to implement this tool are the following:

1. Current state mapping: To know exactly the flow of product/service at your organization

2. Lean value stream: To identify non value added steps and eliminate waste by introducing concepts of takt time, kanaban (pull system), leveled production.

3. Future state mapping: To establish the future flow of your value streams and working on the transition. (Fig3)

The concept is simple, easy to understand and explain but will be very challenging and will need a set of tools to be mastered and adopted to create a smooth flow where the customer waiting time is minimized to null and keeping at the same time the lowest inventories between process. A book worth owning for manufacturing and service organisation leaders who want to pass through the rough times of economy, globalization challenges and customers continuous changing requirements.

Figure 1: lean identifies value from it’s customer

Figure 2: Lean Tools Figure 3: VSM evolution courtesy of 6sigma.org

Key LEAN Principles

Inventory

Overproduction

Processing Transportation

DefectsWaste

MotionTime

1. IdentifyValue

2. Mapthe ValueStream

3. CreateFlow

4.Establish

Pull

5. SeekPerfection

ValueStream

Mapping

SMED QuickChangeover

KanbanDemand Pull

Level MixModel

Production

TPMEquipmentReliability One-Piece

FlowProduction

5S VisualManagement

Point ofUse

Storage

Mistake-Proofing

Poka-Yoke

StandardWork

FMEA

LeanTools


The Effect of Inlet Gas Turbine Air Temperature on Propane Recovery From a

Gas Processing Plant

The project is done as a result of cooperation between University of Bahrain and BANAGAS. The project won the best project award (first place) among the

chemical engineering projects and was supervised by Prof. Elamin M. ElKanzi and Dr. Mohamed Ali Bin Shams

Project IdeaBANAGAS (Bahrain National Gas) Company suffers from reduction in the production of liquefied propane in the summer due to lack of power produced from gas turbines which drive the refrigerant compressor of the refrigeration system because the amount of air entering the gas turbine at high temperatures will be less. As a result of that, the power output of the gas turbine will be reduced and the cooling capacity of the refrigeration system will be reduced as well .Reduction of cooling capacity of the refrigeration system means that less amount of propane will be extracted and recovered from the associated gas .Consequently, the production rate of liquefied propane will be reduced. To solve this problem, new technology is suggested for cooling the inlet air of the gas turbine .In this technology, two heat exchangers are used; in the first heat exchanger the residue gas from the same plant at -34 oC is used for cooling the water which in turn is used to cool the inlet air of the gas turbine in the second heat exchanger. It was found that by decreasing the air temperature from 40 oC to 15 oC the propane production increases by 9.6% per day, equivalent to 245 barrels per day, which will save about BD 6700 per day and more than BD 1,000,000 per year.

Project benefits• Improve the economics of BANAGAS company and Bahrain

• In term of sustainability, propane is used as a raw material for production of propylene which is the second most important starting product in the petrochemical industry after ethylene .The propylene is used for manufacturing plastic .Since Bahrain doesn’t has plant for production propylene , This project will lead to the provision of an adequate amount of propane for producing propylene if Bahrain plan to build a new plant for producing propylene.

• In terms of the environment, increasing the extraction of the propane from associated gas means that less amount of propane will be in the residue gas . The residue gas is used as fuel .Hence, combusting the gas with less amount of propane means that less amount of CO2 emissions will be released to the environment.

Engineering Students Projects

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editorial - bahrain society of engineers · chemical engineering graduates? waste heat recovery as...

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