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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Project Management – Continuous Learning atWilliams MidstreamJohn Connelly, PE Director Technical Services
Knowledge and Project Management Symposium August 13, 2009
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Our Operations
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
About Williams
� Williams gave more than $10 million in 2008 to help meet community needs across the country
� 4,600 total employees in 27 states, along with Canada and Venezuela
� 1,200 of these employees are based at the company’s headquarters in Tulsa, Okla.
� Also have major offices in Denver, Houston and Salt Lake City
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Project Management at Williams Midstream
� Developed PM Process – Project Life Cycle – in 1999 to focus on minor expansion projects
� Major project opportunities in Deepwater Gulf of Mexico began in 2000
� Currently, project opportunities of all sizes in multiple regions – Gulf of Mexico, West, Pennsylvania
� Challenged to continuously improve project management on minor expansions, operations improvement, and major projects simultaneously
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Midstream Project Life Cycle
Identify multiple options to satisfy Customer and Company needs and agreement to pursue opportunity
Iterative process to select the best option and sufficiently define the project to obtain approval and commitment
Final approval and execution of critical documents
Design, procure, construct, and start-up the assets as committed
Transition new asset to Operations: Gas Control, Safety, Staffing, SCADA, Measurement, Environmental, Maintenance, Regulatory, Tech Services
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Devils Tower Project
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Deepwater Projects – Risk Management Focus
� New business entry
� New technology
� International contractors and vendors
� Unique weather risks
� Long project development cycles
� Capital intensive projects
� Complex commercial contracts
� Primarily turnkey construction contracts
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Devils Tower Hull Leaving Batam, Indonesia
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
C ategory 1 H urricane C laudette at M atagorda B ay
Hurricane and Loop Current Risks
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Devils Tower Topsides Installation
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Devils Tower Completed SPAR
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Deepwater Pipe Reel Lay Vessel at Mobile, AL
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Deep Blue Installation Vessel Pipe Spools
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Subsea Junction LayoutSubsea Junction Layout
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.Gunnison SCR installation
Gunnison Steel Catenary Riser Installation
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Deepwater – Project Management Impacts
� Contract with critical vendors and suppliers during project development
� Link commercial and technical risks in contracts
� Time for project development is critical
� Statistical cost analysis can improve risk understanding and cost performance
� Project Management process provides “footprints” to continue on next project
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
The Growth Wave in Projects
� Continue deepwater projects
� Begin expansion in West
� Ensure reliability of existing assets
� Multiple projects across regions requires robust Project Management process to sustain success
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Willow Creek Gas Processing Plant - Colorado
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Willow Creek Gas Processing Plant - Colorado
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
West Projects – Learning Project Controls
� Complex stakeholder relationships – customers, multiple regulatory agencies, multiple governmental agencies, public, contractors, vendors
� Cost increase pressure from peak project activity levels
� Seasonal weather windows
� Remote locations
� General Contractor strategy
� Contract Management and Project Controls capabilities for large projects need improvement
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Midstream Projects – What We Learned
� As an operating company our project process starts with a concept and continues through operation and maintenance of the assets
� PM Process must be scaleable and flexible
� Project definition is very iterative
� PM Process requires continuous improvements and updates instead of a massive effort every few years
� Standardized work processes reduce reliance on institutional memory and heroic work efforts
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Midstream Projects – What We Learned
� Project Management is a separate discipline from Engineering requiring soft skills to supplement technical skills
� PM training has been successful with training developed for a specific audience
� Front-End Loading produces the best results but may not be feasible to meet customer needs
�Critical processes are risk management, project controls, and contract management
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Midstream Project Types
�Maintenance Projects• Manage through existing System Integrity Plan practices
� Tactical Projects• Tactical projects involve two primary stakeholders (Operations and
Technical Services) to complete projects with minimal impact to existing operations.
• Tactical projects are typically small and involve staff that are all part time on the project.
�E&C Projects• Large scale growth projects with complex stakeholder and contractual
requirements• Highest risk factors
The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved.
Midstream Projects – Knowledge Management Impacts
� One version of standards and practices
� Project file, document, drawing, and construction record retrieval and search
� Community of Practice for Project Management
� Implementing lessons learned
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The Williams Companies, Inc. / February 1, 2009 /© 2009 The Williams Companies, Inc. All rights reserved. 2525
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