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Change Management in Engineering and Construction Projects

Learn about the importance of change management in engineering and construction projects, the process to manage changes, and the responsibilities of project personnel. Explore a methodology for effective change control.

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Change Management in Engineering and Construction Projects

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  1. Change Management V.N.Bhaskar RaoEngineering & Construction DirectorAmec Foster Wheeler India Operations

  2. Contents • Introduction to Change Management • Importance of Change Management • Process to Manage Changes • Responsibilities • Methodology • Conclusions

  3. Change Management Change Management is an Inevitable Project Requirement • because, any project that has ever been completed has almost certainly had changes to it’s scope

  4. Introduction

  5. Change Management • What is change? • Change is an authorized alteration to base line scope of work initiated by any party involved in the Project (or) • Change is defined as any deviation from the contractually agreed project scope, schedule or cost.

  6. Change Management • Changes can be different • Contract Changes • Internal Changes

  7. Change Management • Types • Scope Change • Schedule Change • Cost change • Interdependence change (i.e., Scope, schedule and cost changes are interdependent and a change to one will frequently cause changes to one or more of the others) • It is important to understand difference between a development and a change

  8. Importance

  9. Change Management • Necessity • Modern day challenges in Project Execution • Reduced timelines from Project Feasibility study to Implementation • Less developed Front End Packages to Detail Engineering • Early commitments on Procurement of Materials • Early commitments on booking Fabrication yards, site contracts • In Summary, controlled change management is necessary to meet the final Project Objectives

  10. Process

  11. Change Management • Address all aspects • The basis for a good change management system starts with the establishment of the scope baseline. • A good scope change control system is one that makes sure that all of the stakeholders concerned with the change are made aware that it is being submitted, agreed upon, processed, disapproved or approved, and implemented. • Change management must be careful to ensure that budgets, schedules, performance, and documentation are all changed to reflect the change.

  12. Change Management • Identification of Changes should be timely….

  13. Change Management • Identification of Changes should be structured….

  14. Change Management • Change Management Objective is to safeguard interests of all stake holders….

  15. Change Management • Sequence • Identification • Trigger events • Formal instructions • External Conditions • Contract terms • Errors/Omissions • Pre-AFD and Post AFD changes have difference in the way they are dealt with

  16. Change Management • Sequence • Notification • Substantiation • Formal Raising

  17. Responsibilities

  18. Change Management • Responsibilities • PM • To Select, establish and implement an effective and appropriate system of Change control either database or manual system for the project and to discuss and agree with the client. • PEM • To Maintain change awareness in project engineering personnel and monitor for change activity. • Change Coordinator • To administer the change control procedure and change control databases where used.

  19. Change Management • Responsibilities • Functional Leads/ All Project Personnel • To Monitor their own scope of work, identify potential changes and bring them to the notice of their discipline group manager using change flags. • Functional Manager/ Leader • To review change flags raised by their group and bring valid flags to the attention of Area Project Engineer/ Change coordinator. • Area Project Engineers • To accept or reject change flags raised by managers and other discipline group leaders and to issue accepted change flags to the change coordinator.

  20. Methodology

  21. Change Management • Methods of Change Control • Review of Design Basis • A review of key design documents shall be carried out at project outset against the agreed technical basis • Client Changes • Project personnel shall bring all potential changes initiated by the client to the attention of their PM or PEM using change flags.

  22. Change Management • Methods of Change Control • Internal Changes • Key design documents • Project specific listing of key design documents shall be developed under the control of PEM for change control process immediately following the establishment of the document management system. • Once a key design document has been issued AFD it shall be deemed “ frozen”. • Any subsequent proposed internal changes (excepting to incorporate supplier/contractor data) shall be subject to formal change control using change flags.

  23. Change Management • Methods of Change Control • Detail documents • Internal changes to detail documents are unlikely to have significant impact at least until the documents have been released “ AFC”. Personnel shall however be alert to exceptional cases- ( Advance Revision notices) • 3D CAD Model files • Model files shall be considered to be in a state of development until agreed comments resulting from the formal client model reviews have been incorporated. Files shall thereafter be electronically “locked” and subject to formal change control.

  24. Change Management • Methods of Change Control • Engineering Flow Diagrams • Engineering flow diagrams are key design documents for which the state of development at each revision is specifically defined. • Design growth trending • Significant change impact may result from small cumulative changes such as • Growth in I/O count for instrument control systems • Growth in Electrical load requirements • Growth on bulk material quantities taken off • Growth in Piping Isometric drawing count • Growth in estimated utility consumptions. • Reports shall be provided to the Change coordinator at least monthly to enable an analysis of the reason for any design growth to be performed.

  25. Change Management • Methods of Change Control • Engineering Flow Diagrams • Internal Change Review Meeting • To reinforce the change control process, PM shall hold internal Scope revalidation meetings on a regular basis. This meeting shall review all issued design documents and any other means of communication where change may result. This meeting shall call upon individuals, as necessary , to provide information or clarification on a issue that may result in a change flag. • Changes to AFC documents: • Any proposed Internal changes to a document AFC shall only be accepted if • The plant would otherwise constitute a health/ safety hazard • The plant would not otherwise confirm to agreed specs. • There is a clear and well defined financial advantage to making the change which clearly overweighs the change impact by a significant margin.

  26. Conclusion

  27. Change Management • Conclusion • Meeting Project Objectives should be priority • Must address interests of all Key stake holders • Trust between stake holders (Client, Contractor, Vendors, subcontractors) is key for successful change management • Change Management Process should be well documented and should stand for audit trail

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