Large-scale petrochemical projects: Modern approach to execution

The current globalization of the world economic market has forced the industry to adjust its traditional operating strategies. To achieve more competitive rates, engineering and consulting companies are sub-contracting or outsourcing part of their workload to partners located in more financially "attractive" countries, an approach already favoured with manufacturing companies (like automotive and electronic industry). Good financial results and full utilization of manpower can be achieved by implementing work sharing between engineering offices located in strategic work centers. In this way, projects take advantage of global resource centers to provide more competitive labour rates, access industry specialists, and meet staffing challenges, thus stabilizing regional office work forces. This paper presents information on a 10-year experience (1997 - 2007) in work sharing electrical engineering on large scale North American petrochemical projects. The paper describes the applied program, organization of the typical project, structure, communication, flow and exchange of documents, document generation and approval process, quality issues, coordination, progress control, ways for fostering teamwork, cultural differences, and utilization of skills and resources. This paper also discusses how work sharing programs are positively affecting large company cyclical work loads. This model has the benefit of retaining core staff within each office used for work sharing. In conclusion the paper discusses the advantages and limitation of such a program and some recommendations on how to execute future projects that wish to apply the aforementioned philosophy.