BLAST FURNACE RELINE IMPLEMENTATION STRATEGYm-n.marketing/downloads/conferences/ecic2016... ·  ·...

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+ + BLAST FURNACE RELINE IMPLEMENTATION STRATEGY September 12-14, 2016 LINZ, AUSTRIA Copyright © Hatch 2016. All Rights Reserved.

Transcript of BLAST FURNACE RELINE IMPLEMENTATION STRATEGYm-n.marketing/downloads/conferences/ecic2016... ·  ·...

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BLAST FURNACE RELINE IMPLEMENTATION STRATEGY

September 12-14, 2016 LINZ, AUSTRIA

Copyright © Hatch 2016. All Rights Reserved.

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Blast Furnace Life Cycle

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Diagnosis • Inspections • Non destructive testing • Audit Assessments • Process Review

Performance Enhancement • Productivity Improvements • Operating Cost Reduction • Operational Issue Resolution •Environmental and Safety Improvements

Campaign Extension • Operating Practises • Supplemental Cooling • Refractory Repairs

Reline Management • Scope definition • Technology Selection • Planning • Modularization • Execution

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Scope Development and Enhancement Selection Drivers

‒Plant Driven Scope Selection ‒ Eliminate historic issues ‒ Minimize future maintenance ‒ Maximize new technological improvements (wish list)

‒Corporate Spending Limitations ‒ Optimize plant availability ‒ Justify all spending through cost, productivity,

environment, and safety improvements ‒ Minimize capital expenditure

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Scope Definition at Various Stages of the Project

Scope Definition should be Driven by Tangible Benefits and Assessed at Each Gate Review

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Estimate Basis and Accuracy

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Hatch Project Life Cycle Classification

Fron t End Load ing - FEL 2

Fron t End Load ing - FEL 3

Front End Loading - FEL 4

Type of Project Pre-Feasibility Study Feasibility Study Implementation Phase

Hatch Classification Level 2 Level 3 Level 4Gate Review Level Gate 2 Gate 3Also know n as: Order of Magnitude Est. Preliminary Estimate Feasibility Estimate Control Estimate Definitive Estimate

End Use (Typical purpose of estimate)

Concept Screening Concept Study Budget, Viable; Provide basis for securing f inance

Detailed control baseline for monitoring Variation to budget

Check Estimate

Client Decision Basis Selection of Best Project Option; setting of Project Objectives; target cost and schedule; Go or No-Go Decision Point

Development of detailed project basis consistent w ith Project Objectives and target Business Plan, ROI and detailed project implementation planning

Utilized if signif icant departure from project basis occurs (i.e. project basis signif icantly decreased or increased; market or labour experience rapid escalation, etc.

Methodology Capacity factored, parametric models, judgment or analogy, Stochastic estimating methods

Equipment factored, benchmarked or parametric models

Semi-detailed, gross WBS and w ork packages

Detailed MTO’s, unit costs w ith forced detailed take-offs; planning; defined w ork packages

Same as Level 3 but uses actual productivity, etc.

Level of Engineering Definition (note)

0% to 1% 1% to 5% 10% to 20% 30 to 40% completed to 100%

Level of Contingency 30% or more 20% to 30% 15% to 20% 10% to 15% base on CRA Up to 10%

Indicative Probability Range N/A N/A Not greater than 90% Not greater than 90% Not greater than 90%

Indicative Accuracy Range -50% to +50% -30% to +30% -20% to +20% -10 to +10% -10% to +10%

Note:Level of Engineering Definition is expressed as a % of total engineering, w here total engineering = all engineering services in phases FEL1, 2 , 3 and FEL4 (except FEL4 Procurement, Project and Construction Management functions). It is presented as a range to reflect that in the early FEL stages "total engineering" has not been fully quantif ied.

Business Planning, Technology Assessment, Project Options

Conceptual Study

Comparison of Quality of Estimates

Front End Loading - FEL 1

Level 1Gate 1

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Scope Definition – Non Destructive Inspections AUE (Acousto-Ultrasonic Echo Inspection)

(Refractory Measurements) (Best Used with Thermal Modeling)

LFPU (Low Frequency Pulse Ultrasonic) Testing (Stave Thickness)

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Scope Definition – Non Destructive Inspections Inspection Using Drones Laser Scanning

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Scope Definition - Inspection by Infra Red Thermography

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Project Execution Plan

•Overview of Project Scope

•Site information

•Design information

•Capital budget

•Preliminary risk evaluation

•Project execution strategy

•Contracting strategy

•Milestone schedule

•Project responsibility matrix

•Approvals and authorization matrix

•Communication requirements

•Cost reporting requirements

•Construction management plan

•Change management plan

•Safety management plan

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Development of Change Control Procedures

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For more information, please visit www.hatch.com

Thank you.

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