CONOCO PHILLIPS Spec

7/25/2019 CONOCO PHILLIPS Spec

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CONOCO INDONESIA INC. LTD.PROJECTS DEPARTMENT

SPECIFICATION

TITLE DOCUMENT NUMBER REV DATE PAGE

DESIGN CHANGE CONTROL PROCEDURE 84501-9200-9P-001 2 1 Mar 03 2 of 21

Check with Document Control for latest available Revision

REVISION CONTROL SHEET

LATEST REV DATE ISSUED PREPARED REVIEWED APPROVED COMMENTS

O 14 August 2002 C.Binks J.Sexton A.McIntosh Issued For Use

1 1 October 2002 C.Binks R.Ford A.McIntosh Flowchart Updates

2 1 March 2003 C.Binks R.Ford A.McIntoshDepartment Name

Change


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SPECIFICATION




TABLE OF CONTENTS

1. INTRODUCTION ..................................................................................................4

2. APPLICABILITY...................................................................................................4

3. DEFINITIONS ....................................................................................................... 5

4. RESPONSIBILITIES.............................................................................................7

5. REFERENCES .....................................................................................................7

6. PREFERENCES...................................................................................................7

7. DESIGN CHANGE REVIEW BOARD ................................................................13

8. COMPLETION OF DESIGN CHANGE NOTICE FORMS ..................................14

9. DISTRIBUTION ..................................................................................................15

APPENDIX 1 DESIGN CHANGE FLOWCHARTS....................................16-18

DESIGN CHANGE NOTICE FORM...............................................................19-20

EXAMPLE OF A TYPICAL COST ESTIMATE SHEET......................................21


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SPECIFICATION




1. INTRODUCTION

1.1. Purpose

The purpose of this procedure is to ensure that all proposed changes to thedesign during the execution of the Project are fully documented, evaluated forimpact upon the Project and approved by all affected groups prior toimplementation of a change.

The approval levels required prior to any change being made are also detailedherein and the procedure describes the process that controls project-wide designchanges.

The procedure describes the overall Design Change Control System for theProject Team and defines the responsibilities for its implementation and thissystem provides the following:

Compilation of all relevant information such as technical, cost, schedule,weight, life cycle cost, etc., which is essential for the evaluation of theproposed changes.

A systematic process for obtaining management approval to implement achange on the Project.

The opportunity for all affected groups and organizations to evaluate theeffect of each proposed change, including safety, reliability, weight,operability, and maintainability of the installations.

Advance notification to all affected groups of pending changes to ensurecoherent change implementation planning.

It is incumbent upon the Contractor to prepare and implement his ownprocedures and methods of controlling changes to the design of the Project.

It is expected that the contractor have similar procedures within his organizationthat provide the facility of rigorous controls to any changes of the design.

2. APPLICABILITY

This procedure shall apply specifically to the Project Team in the instance wherethe Contractor is unable to control any proposed Design Change within his ownorganization or responsibility under the Contract. Typical examples would be, butnot limited to the following:

a) A change in the Basis of Design document included as an integral part of theContract.


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b) Anything having an external interface outwith the contractual boundary of the

Contractors own organization (CIIL, MIGAS, other regulatory bodies, othercontractors etc.).

c) Anything that affects equipment etc. purchased on a provisional sum basis.

When these occasions arise this Procedure will apply to the Project Team.

3. DEFINITIONS

3.1 Design Change

A Design Change is an alteration or addition to, or deletion from the Contract

Basis of Design, anything having an external interface outwith the contractualboundary of the Contractors own organization, anything that affects equipmentetc. purchased on a provisional sum basis.

The initial point of reference shall be the Contract Basis of Design and anysubsequent changes to engineering documentation generated throughout theProject Execution Phase.

Design Changes shall be classified in accordance with the following criteria:

3.1.1 Discretionary, those entirely within the Project Team orNon Discretionary, those required to comply with regulations or industry

standards, or negotiations and agreements with third parties.

3.1.2 Major Design Change

A Major Design Change is one that meets one or more of the following criteria: -

The total cost impact, increase or decrease, is greater than the affectedProject Managers Facility Authority limit.

The cost impact exceeds the Project area budget.

More than one facility within the Project is affected.

The contractual acceptance criteria are changed.

A change is required to the Project Master Schedule.

The CIIL Operations Group consider there will be large impact on the lifecycle costs.

The designation Major change will be confirmed by preliminary discussionbetween the appropriate Lead Engineers and Project Managers.

No affected engineering documentation shall be issued for implementation priorto the approval of a Major Design Change.


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3.1.3 Minor Design Change

A limited design change that meets the following criteria: -

There is no effect on the budget/schedule of more than one facility of theProject.

The budget of the entire Project is not impacted

The total cost impact is less than or equal to the Authority Limit of theFacility Project Manager.

The change implementation will not have any negative impact on theProject Master Schedule.

The change does not result in weight limits being exceeded or the centerof gravity being moved beyond the established spatial envelope.

It is the action subsequent to a Site Query being raised by a supplier,fabricator or installation contractor.

The CIIL Operations Group consider that there will not be any seriouseffect on the life cycle costs or development Net Present Value (NPV).

No negative impact on reliability

3.2 Manufacturing Change/Concession

A manufacturing change/concession is a make operable/make fit or use as is

change to approved engineering documentation. The request is made at amanufacturing, fabrication, erection or test site and is submitted to permitfabrication, assembly and/or test operations to proceed without schedule delay.The change/concession shall be documented in accordance with an approvedDesign Change Request system.

3.3 Engineering Documentation

Engineering documentation includes drawings, specifications, data sheets,material take-off lists, parts lists, technical instructions etc., produced inaccordance with the terms of the Contract for the Project.

3.4 Design Change Request (DCR)

This is a formal document by which any individual may request a change thatmerits a Design Change proposal be investigated.

Any engineering or construction person working on the Project can initiate aDesign Change Request (DCR). This includes the Project Team and Contractorteams.

A Design Change Request is initiated by completing the Design Change Notice(DCN) Form.


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Such forms are considered to be in the Request state until all required

approvals are obtained.

3.5 Design Change Notice (DCN)

A DCN is the formal instrument, document, or group of documents issued by theContractor which initiates, authorizes, and communicates the essence of theDesign Change throughout the Project, once a Design Change has beenapproved in accordance with Contractor procedures and, where applicable, thisProcedure.

All DCN's will be consecutively numbered in accordance with the DocumentNumbering Specification 84501-9200-9L-001.

3.6 Design Change Review Board (DCRB)

The DCRB is the body empowered to review major design changes whenrequested to do so by the CIIL Projects Manager and shall consist of projectpersonnel as requested by the CIIL Projects Manager. The CIIL InfrastructureManager or his designated representative, shall chair the DCRB. This shall bereviewed dependant upon the geographical location.

3.7 Non Discretionary Change

A Non Discretionary change is an engineering design change that is required topermit design, engineering, fabrication or installation of an item to meet statutoryor safety requirements e.g. Government Agencies, Certifying Authority (MIGAS),Marine Surveyor, Operator Standards etc.

4. RESPONSIBILITIES

It is the responsibility of all Project personnel to implement this procedure.

5. REFERENCES

Project Specification 84501-9200-9L-001 Document Numbering.

Project Specification 84501-9200-9P-002 Interdiscipline Check Procedure (IDC)

6. PROCEDURE

6.1 Initiation of a DCR/DCN

It is expected that the Contractor will have his own procedure for the processingany potential design change up to the point of being passed to the Project Teamfor further action.


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Prior to raising a DiscretionaryDCN, informal discussions as to the impact of the

proposed change on the Project should be held between appropriate involvedparties to determine if there are any reasons why the proposed Design Changecannot be implemented and to prevent wasting time evaluating the DCN. If theindividual originating the request decides to proceed, he/she completes the DCNform contained herein.

Completed DCN's should be forwarded to the corresponding Lead ProjectEngineer. DCN's originating outside of the Project should be directed to theProject Lead whose area will likely be impacted the most.

If there is some uncertainty as to who to send the DCN to, Project Management should be consulted.

A minor DCN will be approved by the Engineering Manager and shall beadministered by that group and will not require action outside of that facilitygroup.

A major Design Change will require central administration, detailed costestimates, schedule impact etc. and require approval by the relevant managers.

The Project Lead engineer within the group initiating the DCN, in conjunction withthe Cost and Planning groups, shall complete a DCN form and co-ordinate thecompilation of the requisite supporting information.

Proposals for design changes outwith the Project group, e.g. Operations, Drilling,etc. shall be coordinated by the Project Facility Group most affected by theproposed change.

6.2 Acceptance of DCN's by Lead Project Engineers

The Lead Project Engineer receiving a Discretionary DCN should perform aninitial assessment to determine if the suggested Design Change is reasonableand consistent with the overall design philosophy. In order to proceed with a fullevaluation, the Project Lead should also determine whether or not sufficientinformation exists or can be sufficiently developed to assess the impact of thechange, and decide whether or not the change adds significant enough value to

the project, given the inherent risk of any change.In this context, the Lead Project Engineer has veto power over any DiscretionaryDCN that he/she deems to be unreasonable, incapable of being assessed,inconsistent, or too risky. In such instances where this veto right is exercised, theLead Project Engineer is obligated to get back with the person who submitted theDCN and explain the rationale which led to its rejection.

If the Lead Project Engineer agrees the DCN is Non Discretionary, then he/she isobligated to proceed with evaluation and has no veto rights. If there is any


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question as to whether the DCN is Discretionary or Non Discretionary, Project

Management should be consulted.

The DCN serial number shall be assigned after acceptance by the Lead ProjectEngineer(s)

6.3 Development of Supporting Information

All DCN's accepted by the Lead Project Engineers are to be fully evaluated as totheir cost and schedule impact. The evaluation is to include a reasonableassessment of the foreseeable risks associated with implementing the change.

The risk assessment should consider the probability of certain negative outcomes

or impacts on other activities (including process safety) and include proposedmethods of risk mitigation.

If the DCN has the potential to impact other project areas, the Lead ProjectEngineer must coordinate the evaluation with the Lead Project Engineer(s) sothat the final assessment properly reflects the totality of the impact that theDesign Change is expected to have.

All DCN's are to be subjected to the Inter-Disciplinary Check (IDC) process(84501-9200-9P-002).

No affected engineering documentation shall be issued for implementationprior to the approval of a Design Change Notice.

The relevant Project Engineer shall:

Collect supporting information to complete the DCN forms.

Obtain the requisite inter-group approvals and comments.

Obtain the estimated cost of change and establish the cost boundaries(Min and Max).

Determine the current purchasing/manufacturing status and/or fabricationstatus of all items associated with the change and the effects.

Obtain from planning any impact on the schedule.

Categorize the DCN as Discretionary or Non-Discretionary, the financialand schedule impact will classify the DCN as Major or Minor accordingly.

If the design change is classified as Major it should first be approved within theinitiating group, it can then be issued for input to the other groups affected.

6.4 Co-ordination

6.4.1 Design Changes


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Engineers shall be responsible for the co-ordination and development of all

design changes emanating from within their respective groups. This activityincludes maintaining all records, assigning DCN numbers according to theDocument Numbering Procedure, controlling document distribution and flow,arranging meetings and co-ordinating the development of the supportingdocumentation.

They shall be responsible for assigning the minor or major classification.

The Facility Project Manager of the initiating group shall be responsible forensuring that major changes are notified to all affected groups and are quicklyprogressed and approved/rejected by the Senior Project Manager.

A register of all major DCNs will be maintained by Document Control who will beresponsible for allocation of sequential numbers.

Affected groups outwith the Project will progress major changes in accordancewith their own Change Control Procedures.

It is vital that a DCN is progressed as rapidly as possible and it is expected that amaximum of 2 weeks should be allowed from initiation to completion.

6.4.2 Design Change Cost Estimates

Each cost group shall be responsible for estimating the cost associated with theDCN

The cost impact shall be broken down into its engineering, procurement,construction, and Project team components. Where increased costs are involved,the value of the perceived benefit must also be assessed in appropriate cost,NPV or NPC or operational terms.

The Operations Manager will be responsible to ensure that any effect on life cyclecost is highlighted and taken into consideration.

6.4.3 Design Change Schedule Impact Assessment

The planning group shall be responsible for the evaluation of any schedule

impact caused by a DCN. The planning group shall co-ordinate with the relevantProject engineers to obtain the information.

The schedule impact is assessed by considering the time it takes to perform andverify additional engineering, change drawings, update plans, revise materialtake-off and procurement lists, and address any potential interaction betweenparallel activities or contracts.

Major changes shall be coordinated by the Project Planner who shall beresponsible for raising changes as per Project Procedures.


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6.5 Review of a Major DCN

The initiating manager of a major DCN shall be responsible for ensuring that allaffected groups are involved in the DCN review.

The project engineers from the groups affected shall review the DCN and shallrecord on the DCN form the cost/schedule impact and desirability of the proposedchange and recommend if it is accepted or rejected. If the recommendation is toreject the DCN then the reasons shall be clearly stated on the DCN form andreturned to the originator.

The review shall include a reasonable assessment of the foreseeable risksassociated with implementing the change.

The risk assessment should consider the probability of certain negative outcomesor impacts on other activities, including process safety, and include proposedmethods of risk mitigation.

The initiating manager will be responsible for organizing the collation of all theinformation and its presentation for the approval process. If the recommendationfor acceptance is not unanimous then it is recommended that a DCRB beconvened for final resolution.

6.6 Approvals

Once the impact of the proposed Design Change has been fully assessed, theLead Project Engineer who coordinated the assessment will approve the DCNand forward it for distribution or further approval in accordance with the followingAuthority Limits:

6.6.1 Major Design Changes

Project Managers

Discretionary and non-discretionary DCN's which have a negative scheduleimpact greater than one Week, increase project execution risks, or result in a costimpact of $250,000 or more require the approval of the respective ProjectManager.

All DCN's which have or are deemed to have a reasonable chance of creating anegative schedule impact must be submitted to Project Managers.

6.6.2 Minor Design Changes

Once the impact of the proposed Design Change has been fully assessed, theLead Project Engineer who coordinated the assessment will approve the DCNand forward it for distribution or further approval in accordance with the followingAuthority Limits:


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Lead Project Engineers

Discretionary and non-discretionary DCN's which have no negative scheduleimpact, which do not increase the risk to project execution, and result in a costimpact of $100,000 or less require the approvals of the Engineering Manager.

6.7 Hold Activity

Whilst reviewing a major DCN, if it is considered necessary to initiate a HOLDon any engineering documentation, then the responsible Project engineer shall:

Obtain approval to initiate a HOLD from his Manager.

Advise the manufacturer (via procurement) or the fabrication site

management team, of the proposed HOLD. Withdraw the engineering document concerned and initiate a HOLD on

the affected area or activity.

Advise all concerned parties including the Project manager of the HOLDaction taken.

6.8 Prior Approvals

In the case of Mandatory or urgent major changes that may have an immediateimpact on the project schedule, the Project manager may give approval toimplement the change prior to a full evaluation and documentation of the change.

This shall be authorized in writing by formal communication.

This should only be considered when serious schedule impact or cost penaltieswould be caused by the normal DCN processing operation.

6.9 Implementation

The Lead Project engineers for the affected groups shall be responsible for theimplementation of all DCNs by means of issuing formal communications andsupporting information to all affected groups.

Project managers are responsible to ensure that all approved major DCNs areimplemented.

When a DCN results in a CAPEX increase or decrease, the cost groups shall,where appropriate, initiate a Trend Notice in accordance with their relevantprocedure. The project cost group is responsible for co-ordination of any resultingreallocation of funds and shall inform the Contracts group immediately of anyimpending change.

When a DCN results in a change to the Project Master Schedule the projectplanning group shall initiate a Change Notice in accordance with the approvedprocedures.


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6.10 Issue of a Design Change Notice

Subsequent to approval by the Project Manager(s) the DCN shall be issued tothe Operations Manager for record purposes.

Upon completion of the final approval signatures Document Control shallcomplete the distribution to all affected parties.

7. DESIGN CHANGE REVIEW BOARD

When the requirement arises for a major DCN to be reviewed by the DCRB, theCIIL Infrastructure Project Manager shall notify the appropriate personnel of thetiming and any additional information necessary.

The Project Lead Engineer responsible for raising the DCN will co-ordinatecollection of the information, organize the meeting, and supply a copy of the DCNdata package at least 24 hrs prior to the scheduled meeting.

7.1 DCRB Attendees

The CIIL Infrastructure Project Manager shall chair the DCRB, or delegate andshall include the following members:

Originating Project Manager

Affected Managers

Originating Project Engineer

Originating Lead Engineer

Cost group representative

Planning group representative

Contracts group representative

Operations, drilling, reservoir representatives as appropriate.

Additional attendees may attend if so requested.


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7.2 Proceedings

The originating Project Manager shall present a summary of the DCN underreview providing the following as a minimum:

Description of the change

Reason for the change

Effect on other groups or organizations

Impact upon the Project

Impact upon non-project activities, e.g. drilling.

Minutes of the meeting shall be taken by a member of the originating group,noting requirements for additional data and recording decisions taken.

The CII Infrastructure Coordinator may approve or reject the change at themeeting or may return the DCN later with the decision.

8. COMPLETION OF DESIGN CHANGE NOTICE FORMS

Appendix 1 contains the sample DCN form, 2 pages, to be completed for eachDCN submitted for approval. The entries are, for the most part, self-explanatory;however, the following comments may assist clarification.

Page 1 Originating group

Title indicative of the nature of the change

Reason for Change reason for the requested change

Change Description description of proposed change

Other Groups Affected tick boxes of all groups affected

Approvals signatures of persons approving the change

Approved Box/Rejected Box Tick box accordingly prior to final approval

by Project Manager

Page 2

Items Impacted tick boxes of drawings/document types affected

Impact On impact should be detailed for each discipline

References details of any Project documentation, correspondencerelating to the DCN

Attachments details of any Project documentation, correspondencerelating to the DCN


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Implementation Plan description of the implementation process for the

DCN

Appendix 2

This is a typical example of a detailed cost estimate form.

9. DISTRIBUTION

The distribution shall be affected by Document Control, who shall retain and filethe original DCN, and copies shall be distributed to:

CIIL Infrastructure Coordinator

CIIL Operations Manager

Project Manager

Deputy Project Manager

Area Project Managers

Discipline Lead Engineers

CIIL Projects Group Records Management Coordinator

CIIL Document Controller


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APPENDIX 1 SHEET 1 OF 3DESIGN CHANGE CONTROL PROCEDURE - EXECUTION PHASE

INITIATION AND REVIEW OF A DESIGN CHANGE NOTICE

DCR/DCNREQUEST

RAISED

INFORMALDISCUSSION

HELD TO

PROCEED

YES/NO

RETURN FORREWORK OR

PROCEED WITHDCN

NO

YESCO& FLEA

E

COMPLETE DCN

& FORWARD TOLEAD PROJECTENGINEER

ORIGINATORINSISTS ON

RAISING DCN

NO

OBTAINPLANNING

IMPACT

COLLECTSUPPORTING

INFORMATION&

COMPLETE DCN

OBTAINREQUISITE

INTER-GROUPAPPROVALS

OBTAIN COSTIMPACT ANDBOUNDARIES

MAX & MIN

OBTAINPURCHASE,

FABRICATIONSTATUS

END

YES/NO

HOLD ONDOCUMENTSREQUIRED

YES

NO

OBTAINMANAGERAPPROVALFOR HOLD

ADVISE ALLPARTIES OFPROPOSED

HOLD

WITHDRAWDOCUMENT

CONCERNED

DESIGN CHANGE FLOWCHART DCN-1

YES


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CATEGORIZATION AND APPROVAL OF A DESIGN CHANGE NOTICE

COST IMPACT


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IMPLEMENTATION, ISSUE OF DESIGN CHANGE NOTICE

DCN FULLYAPPROVED &SUPPORTING

DOCUMENTATION

INCREASE

IN CAPEXES/NO

CHANGE TOPROJECTMASTER

SCHEDULE

COST GROUPISSUE

TREND NOTICE

DOCUMENTCONTROL

COMPLETE

DISTRIBUTION

FLOWCHART DCN-3

DRAWINGS /DOCUMENTSREVISED AND

APPROVED

DRAWINGS /DOCUMENTSISSUED TORELEVANT

PARTIES

CONTINUED FROM

FLOWCHART DCN-2

NO

YES


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XXX PROJECTDESIGN CHANGE NOTICE

Page 1 of 2

TYPE ORIGINATING GROUP:

DISCRETIONARY

NON DISCRETIONARY

DCN No.

DATE :

REV :

TITLE

REASON FOR CHANGE

CHANGE DESCRIPTION ( ATTACH SKETCH/DRG)

APPROVALS (AS APPROPRIATE)

SUBSEA DATE:

DRILLING DATE:

OPERATIONS DATE:

PIPELINE DATE:

STRUCTURE DATE:

TOPSIDES DATE:

MARINE DATE:

CALM BUOY DATE:

SHEA DATE:

RESERVOIR DATE:

CII INFRASTRUCTURE MANAGER: DATE:

APPROVED REJECTED

T/S PROCESS

T/S LAYOUT

T/S STRUCTURAL

T/S MECHANICAL

T/S ELECTRICAL

T/S INSTRUMENTS

T/S SAFETY/ENV

T/S HVAC

T/S WEIGHT CONTROL

T/S FABRICATION

T/S NSTALLATION

T/S E&I DESIGN

T/S DRILLING

W/H DESIGN

W/H FOUNDATIONS

W/H NAVAL ARCHITECT

W/H MECH/INST/SYST

W/H FABRICATION

W/H INSTALLATION

TEMPLATE/TIE BACK

FLOWLINES

RISERS

CALM BUOY

DRILLING

RESERVOIR

OPERATIONS

EXPORT PIPELINE MIGAS

PERMITS/GOVNT

OTHER GROUPS AFFECTED

AUTHOR:

MATERIALS/SPECS

Distribution Copies : Original Document Control


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Page 2 of 2

DCN No. DATE : REV :

FLOW DIAGRAMS

P&IDs

PFDs

ELECTRICAL OLDs

GENERAL ARRANGEMENT

STRUCTURAL

ISOMETRICS

INSTRUMENT DRGS

ELECTRICAL DRAWING

SPECIFICATIONS

PLANS

PROCEDURES

MATERIAL TAKE OFF

MATERIAL REQUISITION

PURCHASE ORDERS

VENDOR DOCUMENTS

NOTES:

IMPACT ON:Tick appropriate box and provide brief summary. Detailed impact to be provided as an attachment

WEIGHT

INTERFACES

REGULATORY COMPLIANCE

RELIABILITY/SAFETY

COST (Life Cycle Analysis)

FABRICATION

INSTALLATION

PROCUREMENT

OPERATIONS

SCHEDULE

CHANGE IN CRITICALITY RATINGS

REFERENCES(Use separate sheet if required)

ATTACHMENTS(Use separate sheet if required)

IMPLEMENTATION PLAN

ITEMS IMPACTED :


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XXX PROJECTDCN COST ESTIMATE FORM

DCN No. DATE : REV :

GROUP: SECTION:

DESCRIPTION:

PAGE OFREV:DATE:

BASIS OF ESTIMATE:

TOTAL

ITEM DESCRIPTION UNIT QUANTITY RATE COST

$

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