- The preliminary investgation report for the oil gas process equipment co,ltd for 667 project

KPD – TAY Integrated Development Project Phase-II

PROC-FC/CB/ PROJ-667/767321/2013 1 / 13

The preliminary investigation report for the oil gas

process equipment co,ltd for 667 project

ignore the diagram and attachment temporarily in this reversion

Time: 1411204-15112014 am 12:00 (spend 1.5 days)

Complied：Yang LU


PROC-FC/CB/ PROJ-667/767321/2013 2 / 13

Directory

1.The geographic position, the traffic situation and the basic summary of the oil gas process

equipment co,ltd…………………………………………………………………………………………………………………..3

2. The introduction of KR company and oil gas process equipment co, ltd, the registered time,

the product scale and the capability evaluation of production…………………………………….....……3

2.1The simple introduction of production site and area ……………………………………………………….3

2.2The 667 project resource distribution of the oil gas process equipment co,ltd………………..4

2.3The plant distribution and production ability(the plant distribution, the man power, the

mechanical equipment, the materials) of the oil gas process equipment co,ltd……………………5

2.4The production organization arrangement factor, the resource distribution, and the

production common problems of the oil gas process equipment co,ltd…………………………..……8

3.The production organization framework, the production operation method and contact

way of the oil gas process equipment co,ltd…………………………………………………………………….…10

4.Compared between the oil gas process equipment co,ltd and the other similar suppliers.11

4.1Compared between the oil gas process equipment co,ltd and the other similar suppliers

for the technology ability and the product quality level …………………………………………………...11

4.2Compared between the oil gas process equipment co,ltd and the other similar suppliers

for the product price…………………………………………………………………………………………………………12

4.3The current project and contract amount which undertaken by the suppliers of the south

area……………………………………………………………………………………………………………………………………12

5.The adjacent geographical environment suppliers of the oil gas process equipment coltd12

6. The sustainable development evaluated and risk factor for the oil gas process equipment

co, ltd……………………………………………………………………………………………………………………..…………..12

7. The conclusion: the production ability of the oil gas process equipment co, ltd whether

could continue as the similar project’s supplier…………………………………………………….……………13


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The content:

1.The geographic position, the traffic situation and the basic summary of the oil gas process

equipment co,ltd

The geographic position: the oil gas process equipment co,. ltd lies in the suburb of

dongying city in Shandong province

The traffic situation: the traffic transport method of dongying city include air

transportation, land transportation, sea transportation, in total three transportation

methods, there of the oil gas process equipment co, ltd only include the land

transportation,, the surrounding of supplier and adjacent area both have not constrained

of traffic, no patrol of traffic police ; maybe in the country road, there are few constrained

of traffic , and the flow of traffic is small, it is easily to transportation in the day, but due to

the geographic position lies in the suburb of Shandong province, and the transportation

road is very far, so it will spend more transportation time and bring more human risks.

The basic introduction: the oil gas process equipment company registered in 2010 or

2011, until now had established 4 to 5 years, from the undertake the 1st batch of project

beginning, the supplier has not the similar experience in the contracts which undertake by

supplier and supplier’s history, it has not the similar experience of project including

equipment manufacturing, electric installation, instrument installation, pipeline

installation, valve installation and assembly the skids for 667 project

2.The introduction of KR company and oil gas process equipment co, ltd, the registered time,

the product scale and the capability evaluation of production

2.1The simple introduction of production site and area

The area of production separated by the country road ”the south two road” , separated into

the south area, and the north area, in total two area of production, which both not far away

the KR general company, the simple introduction as below:

The north production area, no information temporally, upon the description of employee,

it only includes the mechanical company.

The south production area: the south production area was comprised by the north gate,

the west gate, the east gate and the surrounding walls; especially there are many

company’s name were shown in the column in the each gate in the external of production

site , but there is not any partition wall in the whole production site, that means there are

two production methods for the supplier, the 1st production method maybe was arranged

from the top to the bottom, the KR company separated many sub-companies in the

production site, but share the resource of production; the 2nd production method maybe

was according to the three direction of gate, from the bottom to the top, the general

company was comprised by many small companies, and then undertake project

respectively, to delivery the turnkey project

Upon the personal experience to judge, the registered time of KR company on the

website is in the June 2012, the registered time of oil gas process company is in the 2010


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or 2011, and later than registered time of KR company, as per the established sequence of

company, the KR company should be established after the registered time of many small

companies, then financing together to established the general company- KR company,

because if the sub-company’s registered time earlier than the general company, it is not

obey the development rule of company.

The comprised situation of each sub-company in the south production area include:(upon

the description of employee, include the Hengye, Jieke, the compressor, the pump, the

special operation and the oil gas process equipment co. ltd and other sub-companies .etc)

The whole south production area separated A1,A2,B1,B2,B5,B8,B9,C1,C5,C6,D2,D3,D5,D6,

No number workshop, no number workshop, one office building, and one new 10#

workshop to occupied the whole south production area. The general plane layout include

in total 17 workshops and one office building.

Access from the east gate of south production area, it is nearest the deep cold workshop;

access from the west gate of south production area, it is nearest the office building, access

from the north gate of south production area, it is nearest “the Shandong Jieke diesel

equipment co, ltd”( it is belongs to the one of sub-companies in the south production area,

the plane layout indicated it was comprised by A1，A2，17#,16#,15#,13#,6#,B1,B2,C1,C2,i

In total 11 areas) (13# workshop is mechanical workshop, 15#, 16# workshop both are

welding workshop,6# workshop is delivery workshop, C2 is the reduce assembly workshop,

17# workshop is the polish assembly workshop, B1,B2 both are the function test

workshop,A2 is the platform, A1 workshop is the test center) (there of parts of number of

plane layout have not shown in the current actual number of production workshop in the

whole south production area)

The workshop number of south production area as per the sequence from the east to

west , they are parts of area B---area C---the other area B---area A

Below from 2.2 to 6 is the information basic description and the preliminary evaluation

of oil gas process equipment co, ltd in the in the south production

2.2 The 667 project resource distribution of the oil gas process equipment co,ltd

As regards the 667 project, about one area of south production area, the oil gas process

equipment separated into the vessel plant, the skid plant, the deep cold plant, the deep cold

plant #2,(there of the deep cold plant #2 is the other part of deploy of composition for the

other small part of deep cold plant), the external negotiation plant( maybe at the outside of

the south production area, belongs to the external sub-supplier), in total 5 parts

composition , include the basic 5 parts or many production plant( as regards the specific

quantity of production plant, waiting for confirm then feedback)

The vessel plant: the skids and major components include:

原料气分液罐&凝结器撬，净化水泵撬，计量撬，不锈钢低温分离器，排液罐撬，蒙

砂，多介质过滤器，反渗透，反洗水箱，反渗透撬

The skid plant: the skids and major components include:

吸收塔地泵撬，原料气调温冷却器撬，原料器导热油加热器撬，进气多胺液换热器撬，

液氮储罐撬，水处理的 6台泵，撬外管道，除氧水处理撬


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The deep cold plant: the skids and major components include:

贫胺液调温冷却器撬，贫胺液过滤器撬，高压燃气撬，闪蒸分离撬，凝析油稳定塔入

口罐撬，补水泵撬，净化气调温冷却器撬，贫液加料泵 ABC，凝析油过滤器撬，聚结

分离器撬

The deep cold plant #2: the skids and major components include:

低压燃气撬，原水泵撬，净化器水洗撬，销售气压缩机冷却器撬

The external negotiation plant(maybe at the outside of plant), from the KR company to

the oil gas process equipment co, ltd, there are several chemical companies, maybe the

water treatment equipment and vessels of 667 project was distributed and signed the

contract, and was manufacturing in here, involve the major components include: 絮凝剂

加药撬，杀菌剂加药撬，还原剂加药撬，阻垢剂加药撬，碱加药装撬，化学清新撬

2.3 The plant distribution and production ability(the plant distribution, the man power, the

mechanical equipment, the materials) of the oil gas process equipment co,ltd

E.G. the C6 plant( remark: the C6 production plant maybe is the plant which include the

most equipment quantity ( near the completed -product)for production distribution among

the 17 production plant( also include the 10# production plant which was constructing) , at

least it was not neither the least quantity for production distribution nor the middle quantity

for production distribution ,because one plant production distribution layout does not mean

the other operating production plant’s distribution layout, the C6 plant almost has not

workers, on the Saturday, the quantity of worker is not more than 10 people, and these few

several worker left before pm 5, so while further evaluate the production ability of plant,

please ignore the C6 plant, and recommend that refer the other plant which were operating

as the actual production ability reference for the other relevant plants, but the C6 plant’s

production distribution layout could be as reference for the other similar scale plant, and

especially it could be as the reference for the most quantity distribution layout while

evaluated from the outside of plant.

The scale of the plant, similar as wide X length X high = 17m X 32m X 3.5~4m( the 17

plant almost is the same )

The manpower of plant: the quantity of manpower of plant is not more than 10 people

on the Saturday, it has not the data on the Friday , as regards the time sheet and work time

of every day in one month and the work overtime of every day, next time after confirmed

then submit

The equipment of plant : there are 9 crane, almost were distributed in the 3 column

averagely.

The materials of plant: the necessary materials of installation were furnished in the same

plant

The components and materials of layout of C6 plant, please refer as below:


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The current stage statistical production equipment quantity and materials quantity for C6

plant


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The evaluated of whole production ability for the oil gas process production plant:

There are 17 (include one plant which constructing) production plant in south

production area, the scale is 17m X 32m X 3.5~4m,we adopt C6 as the most distribution

quantity of equipment and materials for all production plant, please refer the above two

picture.

The oil gas process production plant include” skid, vessel, the water treatment

equipment”, the quantity of each item is 42 skids, 38 abnormal vessel, 26 water

treatment units, and the pipe rack 600 ton, in total 106.

The compared data about the current production ability of oil gas process production

plant and the requirements of 667 project.

1) According to the quantity of oil gas process production plant, we assume there

are 5 production plants( the external sub-contractor and sub-contractor both are

one production plant), calculate under the beginning time of situation

a) Evaluating from the external of plant, as per the max equipment quantity-27 of

C6 plant to calculate, assume the 5 plant production at the same time,

each ”product” duration need 5 months, 27 X 5 plant =135, more than 106 of oil

gas process, the result could meet the requirements.

b) Evaluating from the external of plant, as per the average equipment quantity 14-

27 of the other plant, 18 to calculate, assume 5 plant production at the same

time, each “product” duration need 5 months, 18 X 5 plant =90，less than the

total number 106, the remain production quantity equal to 106-35(had been

finished) = 71, 71 X 5 months=355 days, 355 dyas X remain schedule 40%=142

days, compared with the production ability 90, 90 X 5 months =450 days，450

days X remain schedule 40%=180 days，save 180-142=38 days，according to the

middle session of Nov to calculate, still need to add 142-38=104 days，saved

about 3 months, the result data show all the “product” will be finish till the Feb

of 2015

(remark: if the worker is flow work, it is not production at the same time for the 5

plant , all the intermittent time will accumulate into the EXW time of goods as

the final forecast delivery time)

c) Evaluating from the external of plant, as per the least equipment quantity 14 of

plant to calculate ,assume 5 plant production at the same time, each ”item”

duration need 5 months, 14 X 5 plant =70, less than the total number 106 of oil

gas process equipment co. ltd , the remain production quantity equal to 106-35

（had been finished）=71， 71 X 5 months =355 days,355 days X remain

schedule 40%=142 days，compared to the production ability 70, 70 X 5 months

=350 days，350 days X remain schedule 40%=140 days, the data illustrate the

plant’s production ability is not enough, it still need to add 1 X 1 plant X 5 months

=150 days X 40%=60, according to the middle session of Nov to calculate, it still

need 142+60=202 days，about 7 months，until the June of 2015 just can

production finished


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2.4 The production organization arrangement factor, the resource distribution, and the

production common problems of the oil gas process equipment co,ltd

The organization method of plant of oil gas process equipment co, ltd is: E.G. C6 plant

The 1st floor of plant include the work protection room, equipment room, tools room and

the valve & instrument room; the 2nd floor of plant include the production management

room, the safe technology & environment protection room, production plan room, meeting

room, product test technology room, quality management room, skid assemble room; all the

rooms of the 3rd floor of plant have not names.

The south area was comprised by some companies which were shown on scutcheon of

the east , west, and north gate respectively, these companies’s production resource

quantity is differenence, E.G. “Shandong jieke diesel equipment co, ltd” (it is one sub-

company of the south area, the plane layout show the sub-company was comprised by A1，

A2，17#,16#,15#,13#,6#,B1,B2,C1,C2 area, in total 11 areas) (13# workshop is mechanical

workshop, 15#, 16# workshop both are welding workshop,6# workshop is delivery

workshop, C2 is the reduce assembly workshop, 17# workshop is the polish assembly

workshop, B1,B2 both are the function test workshop,A2 is the platform, A1 workshop is

the test center) (there of parts of number of plane layout have not shown in the current

actual number of production workshop in the whole south production area) ,the other

remain companies, E.G. compressor, pump, special operation, the oil gas process

equipments co, ltd .etc , all the production workshop / plant’s quantity which were

involved among the general plant quantity (17) had been unequal distributed

respectively ;if the quantity of scutcheon of east, west and north gate respectively the

more, that means the relevant resource( the quantity of production workshop/plant) of

each sub-company will become the less, vice versa, if the quantity of scutcheon of east,

west and north gate respectively the less, that means the relevant resource( the quantity

of production workshop/plant) of each sub-company will not change or parts of resource

will increase(as per the quantity of contract which have been undertaken respectively) ;

the quantity of production plant will direct impact their production ability , which were

involved in the contracts that had been undertaken by the oil gas process equipment co,

ltd; by the way, all the exterior of these production almost is the same, and can’t judge

their new or old degree, and can’t judge which production plant were the later established ,

which production plant were the former established , these production plant’s mechanical

operational equipment whether been tested and normal operated, the internal activity

and resource( labor/mechanical/materials) and the organization production sequence

whether could meet the production requirements of product of contract.

The whole south area has not the warehouse for storage products, only has two no

product’s number plant( with crane) , and long time have not been sweeped, and have not

the access indication of equipment or product, only has forklift.

The common production problem of oil gas process equipment co, ltd

The oil gas process supplier is as the same as the other most suppliers which own

production products, one of the major schedule delay is because each suppliers have not


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validate logistic organization management of internal area and validate production

sequence organization arrangement, from received some orders beginning to procure

components of each products enter into site, to the relevant resource of each production

plant, include production plant quantity distribution, the production plant’s labor quantity

distribution( the flow operation and abnormal flow operation), the labor production sheet

distribution, the mechanical equipment which were involved in each plant, the key point is

from place order beginning to arrange when purchase the products resource to enter into

site , and the storage place of product’s component and materials, each contract’s

product’s production organization sequence, and after the basic assembly finished, the

complete product or near complete product’s storage place, and finial complete test,

when should laugh to the port and book the cargo space transportation’s time

arrangement, all the above have not the general time arrangement and management,

caused the series problems of product during production organization arrangement,

caused the duration delay, the product’s components can’t arrived to the plant in time, the

relevant resource distribution non balance, the product’s progress suspending, the labor

overtime to work, and only for somebody’s one order” must finish in one day” , impact the

product’s quality, caused the product’s defects, rework or redone, and bring the economic

damage; now the current normal production situation of plant is as below, as per the

charting contents of worker, under the best situation, if the works could receive the plan

finish time of product, the actual production’s time, maybe have not any actual progress

from the preliminary 6 days, and till the last day- the must complete time which were

arranged by the leader, in order to catch up the schedule, these labor will ignore the

product’s quality, and overtime to work to meet the time requirements of product, which

were launched by leader at night.

The key activity of production schedule for oil gas process equipment co, ltd

The product production duration of normal vessel or equipment is more or less 3 to 4

months in most common enterprises, but consider the production plant’s internal

organization form( the 1st,2nd,3rd floor ‘s room distribution and function for the plant), the

quantity of production room of oil gas process equipment company, the organization

frameworkof oil gas process company( contact list)(it belongs to the oil gas ground

engineering department), and the contract production component such as the delivery

time of electrical, instrument, valves( supply by client and supply by suppliers), the

materials supply by clients and the materials supply by suppliers; one kind of product such

as “vessel” or “equipment” were manufacturing in the production plant, according to the

above production furnish ways of internal plant, as long as the valves or instruments have

not delivery to plant, the vessel or equipment will always stay in the plant, no matter how

many the quantity of plant the oil gas process equipment co, ltd has, the position which

occupied by product will not move, until the relevant product components such as the

instrument, valves arrived, just could continue product with the necessary materials till

product complete, just could start a new round production manufacturing, that means the

key critical work is not the vessel or equipment’s production manufacturing any more, but

the parts(valves and instrument) become the key critical work which impact the final

product delivery, according to the contents of chatting of workers, it looks seem that the


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workers still can’t judge which materials should be supply by client or supply by

suppliers(such as the valves) at the current stage.

From the production schedule which was shown on the 2nd floor of C6 production room

of C6, the skid’s number is the contract number or the skid saddle’s number, it is not the

production sequence number, that means from some aspect to illustrate that in fact during

the actual production arrangement, the plant self’s production arrangement, has not the

sequence of production, it is only in order to convenient search the appointed skid and

correspond with the contract number, which contract was expedited by client, the supplier

will apply themselves to prior catch up the skids and equipment of the contract.etc.

3.The production organization framework, the production operation method and contact

way of the oil gas process equipment co,ltd ,

The 1st level of oil gas process equipment co, ltd is the oil gas ground engineering

department, the 2nd level is the oil gas process equipment company.

The production operational way as shown as the above organization institute.

The contact way of oil gas process equipment co, ltd as below:

油气工艺设备公司通讯录

总机：0546-6081666 传真：0546-6081988

部门/职务姓名内线外线手机

管理层

总经理曹志卿 56601 6081668 15953280285

采购副总邱立忠 56603 6081688 13589980779

生产副总薛志强 56607 6081557 15806551558

销售副总刘武斌 56656 6081669 13893669641

技术开发中心

副总师兼副主任雷金兆 56620 6081666 13963386208

副总师兼副主任王玉梅56608 6081558

18654660429

副总工程师毕晓敏 13919790038

行政办公室总助兼主任代俊杰 56600 6081666 18654602868

人力资源部副经理智庆艳 56626 6081778 18506465200

容器设计室主任晋来法 56609

56613 608166618554611950

副主任李峰 15166287557

产品工艺室主任毕征 56631

56633

6081918 15154638363

副主任杨立民 6081666 15006888553

技术管理室副主任李峰 56613 6081666 15166287557

文印室徐梅/程桂英 56657 6081666 13561019139

技术营销部副经理韩喜玲 56635 6081666 15266010407

项目管理部副部长段海岗 56622 6081666 13854674245


PROC-FC/CB/ PROJ-667/767321/2013 11 / 13

物资采购部经理聂营兵 56617 6081887 15263848728

财务部经理冯道滨 57716 6081777 18553367578

质量管理部部长周明华 60019 6097060 18654601898

检查室主管李雪卫 56510 6081666 18678665469

无损探伤室主任徐明哲 56530 6081666 15963873579

主管董宗杰 56501 6081666 18610210375

生产管理部总助兼部长康健 60032 6097060 15269248518

安技环保部副部长周国财 60034 6097060 15275608525

设备能源部副部长彭志煜 56508 6081666 15698089855

撬装设备厂副厂长王玉新 60018 6097060 13605466594

副厂长张许朋 61032 6097061 15315031839

容器设备厂厂长马文集

56509 608166613864764699

副厂长陈春林 13792090031

深冷设备厂副厂长张许朋 61032 6097061 15315031839

配套准备厂副厂长丁元顺 57620 6081777 18654611180

机械加工厂副厂长苏卫生 56564 6081666 13792081007

物料管理部副部长盖晓 56512 6081666 13405463210

There of :

The products of vessel plant were in charged by Mawenjin and Nieyingibng.

The products of skid plant were in charged by Wangyuxin.

The products of deep cold plant were in charged by Kangjian, the specific arrangement were

in charged by Duanhaigang.

The products of 667 water treatment of sub-suppliers were in charged by Nieyingbing.

Cao zhiqing is the general manager of the oil gas process equipment co, ltd

4. Compared between the oil gas process equipment co,ltd and the other similar suppliers

The 667 project supplier- the oil gas process equipment co, ltd and the XXXX boiler factory,

the scope of area and the whole scale is more or less as the same, the south area was

respond to the new factory of XXXX boiler, the north area was respond to the old factory of

XXXX boiler.

4.1 Compared between the oil gas process equipment co,ltd and the other similar suppliers

for the technology ability and the product quality level

The oil gas process supplier and other suppliers which own the actual production plants,

during the production progress, both adopt the international stand, and different from the


PROC-FC/CB/ PROJ-667/767321/2013 12 / 13

stand of overseas countries, the product quality level also difference due to the reference

stand variance , during the manufacturing session and after the product completed, both

need the 3rd party take participated and continue track, test, correct, confirmed and

approved so that reach the stand requirements of client.

4.2 Compared between the oil gas process equipment co,ltd and the other similar suppliers

for the product price

Non information

4.3 The current project and contract amount which undertaken by the suppliers of the south

area

Upon the data which published by the management department of C6 - production

plant in the south area, the current undertake project include the 667 project, 667

water treatment project, the deep cold company- 50,000 m3 LNG vessel, Kangda

company- the vertical storage tank, the oil gas Chinese-Italy- filter, the Columbia-

vessel, column vessel, the Canada-vessel, column vessel, the Kerui jieke-vessel.

The contract amount of south area: non information

5.The sub-suppliers which adjacent geographical environment of oil gas process plant

The oil gas process equipment co, ltd lies on the road where from the Kerui

company to oil gas process equipment company, there are several chemical devices

suppliers lies on this road, the 667 water treatment equipment, the parts of contract

which undertaken by external sub-suppliers, maybe subcontract to these suppliers

which on this road or other sub-suppliers, and wait the equipment or vessel or other

components completed, then transport to the oil gas process equipment or puge to

assemble.

6.The sustainable development evaluated and risk factor for the oil gas process equipment

co, ltd

The oil gas process equipment co, ltd is belongs to one of sub-companies, because

company’s organization framework and price factor is not clear, now use the new

plant 10# in the south area as example, the client is Kerui company, the contractor is

“guangrao guangji construction engineering co,ltd” , the construction position

adjacent D6 and B8 production plant, could consult with “guangrao guangji

construction engineering co,ltd” ‘s project returned money situation during the

duration of 667 project, from some aspect to understand the economic situation of

each sub-company in the south area, get profit or loss profit , and coordinate with

the site engineers to track the schedule of 10# plant, consult with worker and

suppliers themselves, to enquire the project’s start time and finish time, to estimate

the project fund’s approved situation and client-Kerui company’s fund flow rate.

The contract’s fund, and the payment situation of project fund by client, no

information


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The manufacturing risk factor of oil gas process equipment co, ltd include: the

resource distribution of production plant, the logistic management and arrangement

of the plant internal, the delivery situation of materials and components, the list

division for materials supplied by client and supplier, the production arrangement

and switch for the skid or equipment in the same production plant , that under lack

of materials situation, storage, transportation, funds flow.

7. The conclusion: the production ability of the oil gas process equipment co, ltd whether

could continue as the similar project’s supplier

Regardless of the oil gas process equipment co, ltd whether has the variance during

manufacturing, regardless of the oil gas process equipment co, ltd own how many

contracts, regardless of the oil gas process equipment co,ltd how to arrange the

actual production, it is all belongs to one of the suppliers of 667 project, under the

current situation that has not the new product suppliers take participate, (due to the

duration and cost), under the limit situation and time, it is very difficult to change

new suppliers.

The oil gas process equipment co, ltd as per” the whole production ability of the oil

gas process production plant abc” to see how many production plant number were

distributed for the procurement contract of 667 project, how many the specific

quantity has? To see each production plant whether undertake the other project’s

product? The quickest EXW time and the lowest EXW time could reach which level?

How much effect the construction session? For the 667 project contract execution,

after the delivery finished, the client final whether could claim for compensation?

Compared with the other similar level, similar history’s suppliers( the technology ,

the price, the production ability”, integrated evaluated the production level of the

oil gas process equipment co, ltd whether could as the later similar project’s supplier?

Ignore the evaluated process temporally

Documents

- The preliminary investgation report for the oil gas process equipment co,ltd for 667 project