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KOC JOURNEY ONWARDS STANDARDIZATION A BRIEF HISTORY. BY Kuwait Oil Company (KOC Standards Team). SPEAKER : MR. A. REDHA AL-HADDAD / S. KUMAR. 1. BACKGROUND.
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KOC JOURNEY ONWARDS STANDARDIZATION A BRIEF HISTORY BY Kuwait Oil Company (KOC Standards Team) SPEAKER : MR. A. REDHA AL-HADDAD / S. KUMAR 1
BACKGROUND • Vast Oil reserves were discovered in Kuwait in 1938, and production began from Gathering Center (GC) 1 since 1946. Oil was shipped first in 1946 by Kuwait Oil Company (KOC) through newly laid sub-sea pipelines to oil tankers, but soon a new oil pier was built in 1949 and then another in 1959 to facilitate exports worldwide. • But until 1975, KOC did not realize the needs of developing its own Standards for ongoing engineering activities and operational demands of various GCs / BSs; and was trying to resolve the multiple technical problems by relying only on the outside agencies (Engineering Contractors / Consultants). • Some resulting problems were only listed below: • No clear technical foundation in projects • Different specifications of similar equipment and spare parts • No proper interchangeability of equipment • Blocking of huge capitals due to accumulated materials & equipment • Project delays and cost overruns including huge claims by the Contractors 2
WHY KOC NEEDS TO HAVE ITS OWN STANDARDS?? • To improve technical knowledge and background. • To provide easy references of Codes and Standards • (Int’l / National / KOC / Industry) for specific use. • To provide a proper technical base for design, construction, operation and maintenance. • To control the options and ambiguities in National, • International and Industrial Standards. • To harmonize past experiences. • To integrate cost optimization (by saving time, minimizing delays, over-design, duplication of efforts, inconsistencies). • To enhance HSE performance and fulfill corporate goals. • To achieve KOC Strategy 2020 with respect to production targets. 3
KOC PROJECTS • Many projects were executed since 1975 and huge procurements were made by adopting different specifications for equipment and materials: • The Kuwait Gas Utilization Projects (1977/78) with Bechtel Specifications • The Bitumen Plant Project (1980) at Mina Al-Ahmadi with BP Standards • The BS 170 (Wafra Gas Project - 1980) with Southern Gas Project Specifications • The expansion of GC 25 and repair of GC 15 (1984/85) with CF Braun Specifications • The rehabilitation of oil fields & GCs (1992/93) after liberationwith Bechtel’s Specifications • The new GC 27/GC 28 (1995) with TPG Specifications including KOC Standards • The new GC 25 (1996) with Bechtel Specifications including KOC Standards 4
THE RESULTS OF NOT HAVING OWN STANDARDS • Due to lack of KOC’s own Standards on many subjects in several disciplines, these specifications from the diverse sources and other Company’s Standards modified to suit certain applications had resulted in • Inconsistent andconflictingdesign specifications • Shortcomings in design and procurement • Duplication of efforts • Costly delays • Lack of quality, reliability and uniformity • No fit-for-purpose use 5
OBJECTIVES OF STANDARDIZATION The objectives and results of standardization in any Company (KOC & Others) can be summarized as: 6
WHY NOT TO ADOPT THE STANDARDS OF OTHERS? • Adoption of other’s Standards is neither possible • nor practicable without extensive amendments. • Other’s Standards are not tailored to suit KOC • operations and requirements. • No similarity in Process, Project and Environment. • Variety of Standards leads to confusion. • Other’s Standards may also include certain established brand names which are used successfully at their operations, but those may not be suitable or available in KOC. • For utmost benefits all major oil companies are forced to have • their own Standards. 7
THE WAY FORWARD • Based on the past history and experiences, KOC Management decided to set up a Standards Team in 1975 with the following guidelines: • To establish KOC Standards on the current National/Int’l Standards. • To incorporate the latest technical changes in preparing the new or updating the existing KOC Standards. • To adopt selectively other company’s standards, where similarity exists. • To utilize specific requirements or certain portions of other company’s standards in KOC Standards, especially where experts or particular expertise are not available. • To review and modify for adoption in KOC Standards, certain procedures established in other company’s standards and operation, where they signify improvements or new advancements. 8
PRESENT STATUS • Management decided to implement KOC Strategy 2020 more strictly which gave rise to: • Impetus to Standardization in KOC • Management active support - to remove bottlenecks and lacunas in existing systems and procedures, - to provide hand-in-documents for ready reference and proper guidance, - to follow / apply safety rules and regulations more stringently and - to make sufficient availability of PPEs to employees at plant and work site. • Where potential process risks exist,application of risk assessment studies andother mode of hazards analysis, through available standards and accepted methods. • Improving plant layouts, constructing blast resistant buildings (control rooms) and removing any other inadequacies for safeguards to man, machines and materials. • Improving training facilities to enhance employees HSE awareness. 9
STANDARDS TECHNICAL COMMITTEE (STC) • To provide proper direction and meet the demands of standardization work, a new KOC strategy was taken up with the following approach: • A KOC Standards Technical Committee was created with Members from the concerned KOC Groups and chaired by the Team Leader Standards. • Terms of Reference (TOR) was approved by the DMD (Technical Services) - KOC Higher Management, which gave full support and recognition within KOC. • Formation of various Task Forces from time to time to utilize in-house expertise and experiences to satisfy KOC technical requirements for preparing and / or updating KOC Standards. • A Standard procedure was developed and approved by STC to maintain a distinct presentation style and formatting as well as to revise / update all KOC Standards / RPs. 10
STANDARDS TECHNICAL COMMITTEE (STC) CHAIRMAN STC/ TEAM LEADER STANDARDS DY. CHAIRMAN SPECIALIST INSP. (INSP. & CORR. TEAM) SECRETARY/MEMBER SNR. ENGR. CIVIL (STDS. TEAM) MEMBER SPECIALIST (ROT. EQUIP.) (OPNS. TECH. SVCS. TEAM) MEMBER SNR. ENGR. HSE (HSE TEAM) MEMBER SNR. ENGR. ELECT. (STDS. TEAM) MEMBER SNR. ENGR. INST. (DESIGN TEAM) MEMBER SNR. ENGR. CORROSION (INSP. & CORR. - TEAM) MEMBER SNR. ENGR. MECH. (MAJOR PROJ. TEAM) MEMBER SNR. ENGR. PROJECTS (GEN. PROJ. TEAM) MEMBER SNR. ENGR. PROJ. MGMT. (NORTH KUWAIT) MEMBER SYSTEM SPECIALIST (IT GROUP) MEMBER SNR. ENGR. MECH. (UTILITIES TEAM) 11
STANDARDS DEVELOPMENT PROCEDURE Approve Publish STANDARDS TEAM TASK FORCE Review Draft STC Assign / Issue Prepare Draft Review & Resolve Comments Comments USER TEAM 12
TYPICAL SCHEDULE OF STANDARDS PREPARATION Issue for comments to all Depts. (3-4 weeks) Review drafts by STC (2 weeks) Data collection & Writing draft Standards (8-10 weeks) Analysis of comments (1-2 weeks) Include comments Finalize drafts for Issue to STC (2 weeks) Publication Final Standards Total (20-24 weeks) Meetings to resolve comments (2 weeks) Approval By STC (2 weeks) 13
PRESENT IN-HOUSE EFFORTS • The tasks of standards preparation are presently continuing by the Standards Team with the available manpower in Mechanical / Electrical / Civil disciplines only: • To prepare, update and maintain a set of fit-for-purpose KOC Standards (approx. 278 Nos.) as per Master List of KOC Standards. • Issued 112 Nos. KOC Standards and 42 Nos. KOC Hazardous Area Classification (HAC) drawings so far. • To complete 166 Nos. balance Standards at the earliest. • To update / revise 23 Nos. old but current KOC Standards and 53 Nos. current Specifications. 14
OBSTACLES AND REMEDIES • Standardization work needs to have • total dedication of personnel, • high degree of professionalism, • diverse experiences in different technical fields, • To speed up the Standards making process, some remedies are planned as below: • More commitment / dedication of the Task Force Members. • More extra efforts beyond normal working hours. • More active participation in the standards making process. • Revisionofcurrent motivation schemes tofocusonstandards efforts. • More specialized manpower. 15
THANKING YOU 16