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Value Improving Practices VIPs for Capital Projects

2. Motivation for Value Improving Practices. Value Improving Practices were introduced in the US in the 1930s as a method to challenge project scopes and aimed at designing and building the bare minimum for the purposeAccording to US literature the consistent utilization of VIPs can save 5 10% of

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Value Improving Practices VIPs for Capital Projects

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    1. Value Improving Practices (VIPs) for Capital Projects Steven M. Buck Manager, Capital Projects February 2010

    2. 2 Motivation for Value Improving Practices Value Improving Practices were introduced in the US in the 1930s as a method to challenge project scopes and aimed at designing and building the bare minimum for the purpose According to US literature the consistent utilization of VIPs can save 5 – 10% of capital investment cost Value Improving Practices improve alignment between business and engineering stakeholders due to intensified dialogue and detailed clarification of project objectives and priorities Value Improving Practices provide a systematic approach to creatively challenge and document project decisions to enhance the level of quality, cost effectiveness, and reduce project execution time.

    3. 3 How does VIP work?

    4. 4 VIP: A Contribution to Competitive Engineering and Successful Projects VIPs will provide: A systematic approach to challenge the team Optimization with total cost of ownership Align business goals and project objective/priorities Document success and best practices

    5. 5 Value Improving Practices Impact

    6. 6 BASF VIP Practices

    7. 7 Value Improving Practices for Large Capital Projects

    8. 8 Timeline Gates & VIPs

    9. 9 Project & Site Classification Clarification and alignment of Project Objectives Determine if project is ready to start basic engineering Decide what Value Improving Practices should be applied Initial discussion of Division of Work and project organization

    10. 10 Process Optimization Systematic review of the process concept to identify opportunities for optimization

    11. 11 Energy & Wastes Optimization Evaluate process concept for energy optimization and waste minimization Heat integration (Pinch Analysis) are considered for energy optimization Project resultant wastes are traced back to their generation to determine if alternate steps can reduce or eliminate wastes

    12. 12 Logistics and Site Optimization Inbound and outbound material flow Transportation modes Storage requirement Site congestion issues Loading and unloading requirements Manufacturing strategy Capacity flexibility Coordination with Site Master Plan

    13. 13 Reliability, Availability & Maintainability Review to determine optimum maintenance strategy and project concept to achieve minimum total cost of ownership to meet required plant availability Define spare parts strategy Standardization of equipment Special predictive and preventive techniques Identification of special cleaning, start-up and maintainability issues

    14. 14 Process Control and Operation Management Review application of advanced process control techniques Alarm management Governmental reporting requirements

    15. 15 Function, Cost and Risk Analysis Evaluation of alternatives to a achieve the functionality of the various project parts Risk assessment of alternatives

    16. 16 Execution Strategy & Risk Assessment Review of Procurement Plan and Execution Strategy Identification and assessment of project risks Development of Risk Management Plan to mitigate risks

    17. 17 Constructability A series of reviews to consider construction planning, execution and strategy issues Claim avoidance

    18. 18 Commissioning and Start-up Develop overall commissioning and start-up concept for project Identification of system boundary conditions System sequence and turnover Commissioning time schedule and resources Special testing requirements Safety concept related to system turnover

    19. 19 VIP Example

    20. 20 VIP Results of How the Tortoise Won !!!

    21. 21 VIP Example: Buying a Vehicle vs a Project

    22. 22 VIP Example: Buying a Vehicle vs a Project

    23. 23 VIP Example: Buying a Vehicle vs a Project

    24. 24 VIP : A Contribution to Competitive Engineering and Successful Projects

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