Description

About the Course: 

Engineering and maintenance projects call for complex engineering and business tradeoffs with due regard to compliance with regulatory and code requirements. A sound understanding of the key aspects of project objectives, drivers, constraints, and profitability is crucial for the success of a project. Fast-track schedules demand faster, more accurate technical and economic decisions earlier in the design process, when engineers and business managers least understands project costs. Consequently, many process facilities cost more than they should.

Using the appropriate evaluation techniques and skills, engineering and economic decisions can be reached faster, more accurately, and with greater confidence, avoiding costly project delays and potential rework.

In cases where there is competition for resources between several technically viable projects, cost and schedule factors play a key role in ranking the projects based on their profitability. Similarly, costs and schedules have a major impact on the selection of the most cost effective maintenance option from among several alternatives such as repair/replace or long/short term repairs.

The course covers the basics of project development and management. It begins with Project initiation and development phases and progresses through the project execution and control phase. It highlights the cost considerations and the degree of influence on costs in each phase.

Technical viability of a project, whether it involves new facilities or a repair method, must be ensured before the economic evaluation starts. The course presents the technical fundamentals and provides guidelines and procedures for conducting technical evaluations.

The time value of money and life cycle cost concepts are essential aspects of economic evaluations. These topics will be covered in detail with the use of a number of worked examples.

Course Objectives:

On completion of this course the Participants will learn:

• A fundamental understanding of financial and accounting principles, terms, techniques, and best practices,
• The tools you need to perform financial evaluations and justify your own project to corporate management, and
• A fundamental understanding of the technical aspects that should be considered in technical evaluations of projects to ensure their technical viability, mechanical integrity and compliance with applicable regulations, codes, and standards.

Designed For:

The course is pitched to appeal to professionals with a large range of technical and industrial backgrounds and varying levels of experience seeking to broaden their skills and abilities in economic and technical valuation techniques required across industry.

Design, project, maintenance, and plant engineers, supervisors and professionals in the manufacturing, chemical processing, petrochemical, power, food, and other process industries. New graduates will benefit within the short period of two days from the extensive practical experience of the instructor.

Course Outline:

Project initiation and development       Project development         Project execution and control           Workshop 1 - Key principles and guidelines for successful projects

Technical evaluation analysis

    Key issues in project analysis         Analysis of project technical and engineering aspects           Environmental analysis    Project risk considerations        Risk assessment methods and recommended practices        Risk Management and Contingency            Level of uncertainty in project life cycle            Risk analysis and mitigation measures            Contingency     Workshop 2 – Technical evaluation of projects        Case study – Technical evaluation of a capital project

Economic evaluation analysis    Principles of time value of money and the discount rate    Methods of ranking investment proposals        Case study – Econo