SPECIALIST ENGINEERING FEATURE
Apply for sanction to move forward through gate 2 to investigate and select the option to be developed.
WE COULD APPLY A SIMILAR GRAPH TO THE GATED PROCESS:
Gate 1 Appraise
Gate 2 Select
Influence
Gate 2 Select - Select the preferred project option, one which maximises long term value and appropriately manages risk over the long-term, for progression to the Define gate. Making the right concept selection decisions are key and should not be rushed. Decisions informed by integrated data, then adding sufficient
Gate 3 Define
Gate 4 Execute
Expenditure
Gate 5 Operate
Apply for sanction to move forward through gate 4 into Project execution
Gate 4 Execute - Implement the Project Execution Plan as an integrated work-scope with close attention to quality, performance and risk management.
As the graph illustrates costs at the front end are low in terms of the full project cost because a small team of people are generally involved. As soon as a project reaches gates 3 and 4 depending on the scale of the project the numbers of people which are involved could ramp-up significantly, purcahsing of long-lead items may begin and the cost increase rapidly. Therefore a good solid structure must be in place from the start.
To give an outline in more detail of our gated process at NCOE for projects consists of the following Gates, where each one becomes an exercise in itself.
Gate 1 Appraise - Confirm the viability of the project and identify a range of project options to be screened, at least one of which is technically and commercially viable.
1 Determine main requirements. Licenses, tariffs, overall requirements specification
2 Existing engineering capability and knowledge
3 Identify the project options to be screened for viability
4 Estimate the overall costs to be met for design and installation and also the lifecycle costs to make the project viable
definition, combined with a strong Management of Change process and planning, will ensure readiness for entry to Define.
1 Investigate alternative options 2 Determine safety risks, environment risks, and commercial risks
3 Determine the knowledge base for each option
4 Determine major parts and suppliers 5 Select the option to be taken forward and further developed
6 Project cost estimate
Apply for sanction to move forward through gate 3 to further define the option to be developed
Gate 3 Define - Complete the technical definition through Front End Engineering Design (FEED) and project execution planning, with the development of project cost estimate and schedule, and risk management plans. Also further development to confirm business case and performance targets for entry to Execute Gate.
At this point the project has been developed with an audit trail showing due diligence. This is then applied to determine the best option to take forward into Engineering, Purchasing, Installation and Commissioning (EPIC). Cost estimates are also refined at this stage.
www.windenergynetwork.co.uk 95
Although we may apply the analogy of taking a walk through fields, this is a serious process and not just a “walk in the park”. This will therefore provide a viable, risk reduced, developed pathway to project success.
Tom Kellacher Newcastle Chambers of Engineering
www.ncoe.co.uk
Click to view more info
Gate 5 Operate - Complete the project close out and handover in timely manner. Support the safe execution of the start-up plans. Ensure the completion of performance testing and lessons learned.
CONCLUSION
In conclusion, using this process minimises risks. In terms of project design and management, only the viable ideas will progress, where they will be given increased resources. Those that are not viable will shut off before investment is wasted upon them.
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