This paper describes the latest experiences and ideas of project management based on fast track FPSO projects in the North Sea arena.
These experiences and ideas have been developed from a managing contractor's point of view and identify external and internal organizational aspects which are relevant for an integrated project set-up.
This paper will focus not only on the technical aspects of project management but will also address the business and organizational aspects which should facilitate and support the complex "technical" organization and individual technical professional.
Due to the complex nature of offshore projects, the tendency was that project organizations were built on individual specialization or functions and many jobs were standardized, which led to differentiated organization, structure or procedures.
This thinking does support and increase the project control aspects of project management, but the negative aspects of this organizational model, i.e. bureaucracy, is that the flexibility and innovative behavior of project teams limited and communications structures become too complex to cope with the changing business environment.
The standard project objectives, safety, cost, schedule and service/quality levels are continuously changing and becoming more and more stringent. Legislation is changing and rules and regulations have developed from prescriptive to goal setting.
This means that the onus of performance standards and quality levels is now the responsibility of the project teams.
New ideas are required and one idea is the integral project management approach i.e. contractual, commercial and social aspects of project management need to be integrated and all project functions need to support the overall project objectives.
This will require integrated thinking and understanding of the relevant organizational objectives from the early start of a project, involving all available talent within an organization.
Today's management trends such as strategic management and learning organizations can support the integrated project management approach, but theories will not automatically become daily practice.
This will require experimentation and result sharing between projects and organizations. It is my opinion that initiatives such as CRINE will be supported by an integrated project approach.
The highlighted ideas and findings should lead to a more integrated approach to complicated offshore projects, including better utilization of the personal skills of (technical) project members.
FPSO projects are very suitable as a study object from an integrated project management point of view, due to the fact that FPSO developments are complex and their project objectives are challenging.
As an example, FPSO projects require the merging of the practices of two industries, i.e. shipbuilding and the offshore industry.
Both industries have different suppliers, regulations, practices, organizations, authorities, etc., which indicates that the project environment has become more complex.
This paper will be supported by examples that have been experienced during several projects.
The significance of the subject matter is that the offshore environment in the North Sea has moved from large field development into deepwater and marginal field development.
It should be noted that the few large developments which are left and the refurbishment of existing production units have both been excluded from this paper.
This, together with the tendency of oil companies to subcontract the development of production units, has led to smaller profit margins and more severe competition.
Contractors who wish to cope with this situation have to minimize the project duration and increase the budget control without limiting the (cost) innovations.
Reduction of project duration will lead to more parallel design, procurement, construction and commissioning. The natural interface between these traditional projects has to be managed and needs to be continuously improved.
A possible answer to this environmental change is to integrate the project phases and improve the internal/external interface organization.
The intent of this paper is to participate in the development of project management ideas and to exchange practical experiences which are essential to support continuous organizational improvements.
The fast changing offshore environment will demand a more aggressive approach and consequent changes to the existing project management style.
Companies who wish to remain competitive must learn from each others' experiences.
Note : the paper was presented at Offshore Technology Conference in 1999. paper no. 10 830.
By Rost, N.E.
Source: www.bluewater-offshore.com
© 2000 Mena Report (www.menareport.com)
