SASOL MISSION
Sasol leads the world in the conversion of coal to oil and gas. Sasol is also a leading member of the South African coal, chemical and crude-oil ‘industries. Their prime objective is to supply their customers in local and foreign markets with quality products and services on competive terms.
As a private sector organisation, Sasol takes pride in its contribution to the prosperity of South Africa.
Sasol believes in the free enterprise system and regards profit as a measure of long-term success. Sasol insists on the highest ethical standards and conducts business with due regard for the community and the environment. Sasol puts a high premium on safe and healthy work environments and practices.
Sasol does not discriminate on account of race, sex or religion. It respects the dignity and rights of the individual and offers equal opportunity to all employees, on merit, to develop and realise their career aspirations.
The Sasol organisation in founded on the decentralisation of responsibility and authority combined with explicit accountability and strict financial controls.
All Sasol employees are colleagues who, with mutual trust and teamwork, personal dedication, perseverance and creativity, ensure that Sasol will remain an exceptional enterprise characterised by its superior performance.
Left: The 560 ton, 105 meter (344.49 ft.) fractionating column was erected in a single lift.
1991 PMI PROJECT OF THE YEAR WINNER!
November 1991
G.J. van Zyl
Chief Project Manager, Sastech
Sasolburg, South Africa
INTRODUCTION
On 15 April 1988, approval was granted to commence with the installation of a new 150,000 ton/annum polymer grade propylene plant feeding propylene to a new 120,000 ton/annum grassroots polypropylene factory. The first purified propylene was produced in November 1989 and polypropylene in February 1990.
The 22 months required to produce the first polypropylene has set a new world record in erecting this type of plant. To our knowledge, the best schedule achieved to date for a plant of half the above capacity was 26 months. This must bean indication of the unique and innovative project management methods applied to have made such an outstanding achievement possible.
Background
During 1987, Sasol, a South African Petro Chemical Company, investigated the possibility of entering the polypropylene market as a player in the international arena of world suppliers. After careful assessment of the market, capital cost forecasts and detailed economic evaluations, the Sasol Ltd. Board gave approval to proceed with the project in October 1987. The decision was made to construct the plant at the Sasol Secunda installation, which comprises two giant oil-from-coal facilities, that have been designated as Sasol, Two and Sasol Three.
Detailed discussions commenced after this date with two potential process licensors. On 15 April 1988 a final decision was made to use the BASF process for the polypropylene factory. This was also the kick-off date for the polypropylene factory.
Work Breakdown
During January 1988 a Sastech (a Division of Sasol Industries (Pty.) Ltd.) project team was put together to manage the polypropylene project. It was decided by the team to split the R541.7 million project into five modules for effective implementation and control.
Module A. A 150,000 ton/annum propylene purification plant situated within the battery limits of Sasol Two costing R70.4 million.
Module B. Interconnecting services, supplying utilities to the polypropylene factory from Sasol Three and purified propylene from the purification plant (Module A) to the polypropylene factory (Module C) costing R11 .7 million.
Module C. A grassroots 120,000 ton/annum polypropylene factory situated adjacent to the Sasol Two and Sasol Three factories costing R364.0 million.
Module D. Civil infrastructure for Module C, consisting of the warehouse, workshops, administration building, roads, etc., costing R35.6 million.
Module E. Currency fluctuations, preproduction cost, premarketing cost, etc., costing R60.0 million.
PROPYLENE PURIFICATION (Module A)
Process Description
The basic principles of operation of the purification plant are to upgrade a propylene-rich feedstock from the existing cold separation units of Sasol Two into a product of at least 99.7 percent purity. A first-stage process column was designed to remove ethylene and lighter components. The bottom product is fed to a C3 splitter where separation of propylene from propane and other components are achieved. The overhead fraction is condensed to leave the plant as a purified propylene product.
The currency rate at the time of project ± R2-60 : $1. For applicability please round off when converting to dollars.
Technical Information
The main erection contractor performed remarkably well. An impression of their scope of work is gained from the following summary:
- 285 ton structural steelwork;
- 643 m2 grating;
- 25,000 m piping;
- 7,955 piping welds;
- 1,400 X-rays;
- 1,434 m2 fireproofing; and
- 272,889 actual labour-hours.
A lot of interest was shown in the C3 splitter. For this reason further information is warranted.
The column was manufactured by SA Linde in Vanderbijlpark, RSA, from carbon manganese steel SA 537 class 1. Detail planning entailed some 8,000 activities.
The column was fabricated in nine pieces using submerged arc welding and manual metal arc processes. Approximately 4,400 metres of welding necessitated 133 welding procedures. Repair work amounted to less than 0.2 percent following radiography, ultrasonic and magnetic particle testing, both before and after stress relieving, as well as destructive testing of production test plates! The test simulations that were performed recorded weld shrinkage of 2.4 mm per piece. Preheat temperature was thoroughly controlled at ±1OO°C. Axial alignment had to be within an accuracy of 0.5 mm/m, i.e., 52.5 mm over the 105 metres length. Actual final alignment on site was 2 mm! Wall thickness varied from 34 to 47 mm. Dished ends were assembled from nine petals. Tolerance of tray rings easily complied with the specified 2 mm.
Traditionally, a column of this nature, 105 metres high, 4.6 metres internal diameter and a lifting mass of 560 ton, would be welded together in the vertical. The revolutionary method adopted of welding the column in the horizontal and to perform a single lift, addressed and overcame three major problems: quality of work was superior, the schedule was drastically cut and the method proved cost-effective due to the reduced difficulty factor.
POLYPROPYLENE FACTORY, CIVIL INFRASTRUCTURE AND INTERCONNECTING SERVICES (Modules C, D and B)
As these three modules were so integrated and interdependent on each other, it is considered best to describe it in terms of requirements as one module.
With licensing negotiations still ongoing in the first quarter of 1988, Sastech had very limited process information to work with. In spite of this, Sastech decided to approach selected engineering companies for quotations.
In February 1988 a shortform request for quotations was sent to five European engineering companies, who were selected on the basis of their experiences with the processes of the two potential licensers. Each of these companies had to prepare a comprehensive company profile and to present it to a five-man Sastech team in Europe.
On 15 April 1988 the licenser decision was made simultaneously with the kick-off date for the project. A decision was also made at this time to award the engineering contract to Lurgi GmbH.
A kick-off meeting was then arranged to commence on 18 April 1988 to establish the plan of execution and define the scope of work.
Resulting from the kick-off meeting, a multidisciplinary Sastech team was placed in the Lurgi Frankfurt offices to control the head office work.
Process Description of the Polypropylene Factory
The plant can be divided into four different functional areas:
- Catalyst preparation
- Polymerisation
- Extrusion
- Bagging and dispatch area
Catalyst Preparation
The catalyst is prepared in a sequence of ball-milling and cooling steps. Three ball-mills and an ammonia refrigeration unit are required for this purpose. The co-catalyst is prepared in a continuously stirred tank reactor in which the aluminium alkyl and co-catalyst are mixed. Both the catalyst and co-catalyst react violently with water and oxygen and therefore the preparation of both is done in a heptane medium under a purified nitrogen atmosphere. Powder fire fighting equipment and stringent work procedures are both required at this part of the plant.
Polymerisation
The polymerisation area is divided into two separate trains. The first train consists of one reactor and its auxiliary equipment. It is capable of producing 60,000 ton/year of homopolymer (a polymer composed purely out of polymerised propylene). The propylene is purified over a molecular sieve in order to remove any residual water. It then enters into the reactor together with the catalyst and co-catalyst.
The second train consists of two reactors. This train is capable of producing homopolymer at a rate of 60,000 ton/year, random co-polymer at 60,000 ton/ year and block co-polymer at 72,000 ton/year. A co-polymer is essentially a polymer where ethylene and propylene have reacted simultaneously. Homopolymer and random co-polymer are produced in the first of the two reactors, but when making block co-polymer the two reactors are used in tandem. The recycle loop, catalyst and co-catalyst feeding as well as removal of residual propylene is identical to train one.
Extrusion
Powder is transported to extrusion by means of nitrogen conveying. In the extrusion plant the powder is sent through an extruder to pelletise it. During the extrusion process additives to stabilise the polypropylene are added as well as propylene oxide to prevent corrosion as a result of catalyst residues in the polymer.
Bagging
The bagging line is used to bag the product into 25 kg bags. A bagging rate of 27 ton/hour can be obtained and the final bags are placed on wooden pallets for shipment or road transport. The products are stored in a warehouse with a design inventory of some seven weeks production.
THE PROJECT MANAGEMENT BODY OF KNOWLEDGE REPORT
MANAGEMENT OF SCOPE
Conceptual Development
In terms of a declared policy, Sasol embarked on a programme of diversification from their traditional oil-from-coal industry. This, inter alia, entails adding value to raw products. In this instance propylene is extracted from a hydrocarbon stream, eventually to be upgraded to polypropylene.
The basic engineering (Schedule A package) for the polypropylene process plant was developed by the licensor, BASF, in Ludwigshafen, Germany.
Sastech had overall responsibility to develop the infrastructure, warehousing, utilities and factory layout by coordinating the licensor, the engineering contractor and Sastech detail design activities into a conceptual proposal. Beginning on 15 April 1988, this exercise took approximately three months.
Following conceptual studies conducted by Sastech, Linde TVT was approached for Module A to compile process and instrumentation diagrams. A review was held in order to confirm client requirements.
Scope Statement
Sastech's scope. To achieve overall management of the project, i.e., basic and detail engineering, design, procurement and expediting coordination, quality control on site and at vendor workshops. To achieve overall site management and detail design and procurement for the interconnecting utility services.
Module A. Subsequent to a value engineering exercise, hazard analysis, operability study and formal mechanical flow diagram reviews, the scope was fixed. The semi-definitive estimate was structured according to the scope statement.The plant was specified to produce 150,000 tons per annum of propylene product at a purity of 99.7 percent weight percentage minimum on the proviso of a defined feed averaged over 8,160 hours (340 days) per year.
Module C. During the kick-off meeting that commenced on 18 April 1988 a comprehensive project execution document was prepared to give guidance in the managing of the project and define the requirements.
Work Authorisation
Approval was granted on 15 April 1988 to proceed with the project which allowed formal placement of contracts.
Scope Reporting
Three types of schedules were utilised for the project, namely, master, primary and detail. Typically master schedules were updated on a monthly basis for reporting to management. The primary schedule was chiefly referred to during fortnightly progress meetings with contractors. A detailed schedule was used mostly in-house by contractors, but formed the basis for generating summarised reports.
SASOL
The Sasol Story
Sasol's success story is also South Africa's achievement to be more independent in energy supply. Sasol saves South Africa more than $2,000 million annually in foreign exchange through crude oil and other chemical import replacements.
Research in oil from coal was already far advanced by 1922 in Germany, and in 1927 the South African Government published a study on the manufacture of synthetic fuels, as South Africa's abundance of low-grade coal dictated a look at coal as an alternative energy source.
In 1947 legislation was passed for the establishment of an oil from coal industry, and in 1950 the “South African Coal, Oil and Gas Corporation” (now Sasol Industries) was formed as an ordinary company with a profit motive. The capital was provided through the South African Industrial Development Corporation.
The plant at Sasolburg was based on German and American technology. However, extensive research and improvements were necessary to make the plant viable. In 1972 Sasol obtained the rights to the process and it became known as the Sasol Synthol Process.
Sasol established itself in the sixties as an important supplier of raw materials for the chemical industry with butadiene and styrene for the plastics industry being produced.
Gascor, established in 1964, supplies synthetic fuel gas to more than 600 different industries.
Sasol's decision to refine crude oil was made in 1966, which led to the establishment of the Natref Refinery in 1969 with Total of France.
Sasol Two and Sasol Three
The government requested Sasol to build a second plant in the sixties. This was uneconomical at the time and Sasol's suggestion of a strategic oil reserve programme was accepted. The 1973 oil crisis led to the announcement of a second Sasol in December 1974. The project was mainly financed with fuel levies paid to the State Oil Fund. Construction of Sasol Two and its two associated coal mines was started in 1976, and the first oil produced on 1 March 1980. The plant cost approximately $2,500 million.
Sasol Three's announcement came after the Iranian Revolution when the Shah of Iran was dethroned and the oil supply to South Africa was effectively turned off. The announcement was made on 22 February 1979 and the construction of the factory and two additional coal mines started immediately. The four coal mines together form the largest underground coal mining complex in the world, producing 33 million tons of coal per annum. Levies on fuel again played an important role in financing the $3,300 million project, which took less than four years from start of construction to commissioning. In 1991's money value, the replacement cost of these plants is some $10,000 million. The Secunda complex is still the largest grassroots facility ever built in the world,
A Public Company
Sasol Limited was established in 1979 as the holding company of the Sasol group and the company was quoted on the Johannesburg Stock Exchange. It is today ranked solidly among the top ten companies in South Africa.
Sasol entered the fertiliser market in 1983 and the explosives market in 1986. During 1990 Sasol ventured further into the more profitable chemicals markets with the completion of a world scale polypropylene plant in Secunda. The lubricating oil field was also entered and new developments of approximately $500 million were also announced. These included expansion of wax production, new ammonia and paraffin production plants, as well as a N-Butanol, anode and needle coke plants. Ethylene recovery capacity was also increased.
A fifth coal mine, which will use strip mining methods was also started, which will bring Sasol's coal production to more than 25 percent of South Africa's total.
Sasol Products and some of the applications:
- Waxes
- Candles
- Polishes
- Crayons
- Hand cleaners
- Printing inks
- Leather treatment
- Tar Products
- Wood preservation
- Cellulose fibre
- Pipes
- Brake pads
- Abrasives
- Laminated wood and chipboard
- Anode and needle coke
- Fuels and lubricating oils
- Solvents
- Paints
- Varnishes
- Lacquer thinners
- Methylated spirits
- Adhesives
- Nail polish remover
- Polyisoprene
- Rubber
- Polypropylene
- Plastic products
- Ethylene Products
- Plastic products
- Dry cleaning solvent
- Aerosol propellants
- Chemicals
- Sodium sulphate
- Mining chemicals
- Sulphur
- Nitrogenous
- Fertilisers
- Explosives
- Cyanide (gold recovery)
Deviation reporting was considered most important. This highlighted all deviations from schedule, budget and quality, reflecting corrective actions and end-of-job impact.
Project Controls
Project controls are always an essential part of a project where ideas are converted into economic terms. The project manager plays a vital role in this respect to balance cost cutting exercises in relation to quality of work and schedule requirements. The principles of controls are to concentrate on current and future activities, where the greatest potential exists at an early stage and to focus attention on the big issues where the greatest gains can be realised.
Daily meetings were held with Fluor, Lurgi and Linde on site, chaired by Sastech. As the project progressed this was extended to our client, the licenser and relevant vendor personnel. These meetings were addressing progress, problems, plans of action and completion dates per unit and per discipline. Overall meetings were held on a weekly basis under the control of the Sastech project manager where the main contractors had to report on progress, action plans, productivity resource allocation, potential deviations and opportunities.
Construction Execution Philosophy
Construction work was carried out 7 days per week 24 hours a day in areas where it could be accommodated. Every activity was executed based on early start and early finish principles. Resource allocation was based on area saturation levels.
The factory was sectionalised into controllable units under a construction superintendent. A Sastech engineer was put in charge of each of these units, forming a “gorilla team” ensuring that problems were resolved and pro-active action taken on all project components including:
- Design
- Procurement
- Delivery
- Construction resources
- Completion and handover
- Optimum utilisation of construction equipment
- Controlling of interfaces between different areas and contractors
Project Termination
Project termination is best reflected according to the agreed handover procedure. Sastech also provided a post-completion service ensuring that all documentation was updated, surplus material taken care of and that financial matters were effectively finalised.
MANAGEMENT OF TIME
Time Planning
Specific time planning allowed for, amongst others, planned dates for process and mechanical flow diagrams, shop fabrication, material deliveries to jobsite and mobilisation.
In the process of time planning, due cognizance was taken of threats such as illogical sequence of work, repeat work, late decisions, poor communication channels, waiting time, failure to delegate and poor record keeping. The success of the project proves that these threats were overcome.
Table 1. Milestones in Construction Schedule
| Propylene Purification | Planned | Actual |
| Project kick-off | 15 Apr 1988 | |
| Start of civil works | 08 Aug 1988 | 15 Aug 1988 |
| Engineering complete | 31 Mar 1989 | 30 Apr 1989 |
| Start of mechanical erection | 01 Apr 1989 | 01 Apr 1989 |
| Rigging of C3 Splitter | 22 Apr 1989 | 28 Apr 1989 |
| Start of piping installation | 01 May 1989 | 15 May 1989 |
| Delivery of all equipment | 30 Jun 1989 | 31 Jul 1989 |
| Start electrical/instrumentation | 01 Jul 1989 | 01 Jul 1989 |
| Mechanical completion | 15 Ott 1989* | 02 Ott 1989 |
| Complete precommissioning | 10 Nov 1989 | 25 Ott 1989 |
| Complete commissioning | 27 Nov 1989** | 19 Nov 1989 |
| *Contractual date for mechanical completion was 15 December 1989, but upon a formal change order at premium, the date was Improved to 15 October 1989. | ||
| **Similarly the original commissioning date was improved from 15 February 1990 to 27 November 1989. | ||
Productivity levels were not always optimal due to the extended working hours. The trade-offs against meeting deadlines were however worthwhile.
Time Estimating
The reader is referred to Table 1 which shows actual versus planned milestone dates for propylene purification.
Time Scheduling
Proper time scheduling is of vital importance to the success of any project. As can be seen from the results achieved on this project, the right things were done at the right time.
Time Control
A project team cannot be effective without managing time correctly. Many time saving “tricks” were practised, which later became automatic, such as:
- Set realistic targets and priorities daily.
- Delegate rather than get bogged down in detail.
- Get unpleasant tasks over with quickly.
- Make use of every minute.
- Respond immediately to anything that requires action.
- Keeping efficient records.
MANAGEMENT OF COST
Cost Estimating
Based upon a detailed description of work, a semi-definitive estimate to an accuracy of 10 percent was prepared. The estimate reflected all labour-hours, quantities, procurement, construction, commissioning, management, currency splits, freight and insurance. In order to conduct effective value management exercises, costs were broken down to reflect process functional areas. The cost estimate was also shown per work breakdown structure and Sastech code of accounts.
Cost Budgeting
The uncertainties in the cost estimate were analysed into worst and optimistic viewpoints, upon which the contingency allowances were based.
From here a control base was developed against which control was exercised.
Cost Analysing and Forecasting
Cost reporting is a means to compare between the budget and the indicated total cost, as well as actual committed values. Cash flows reflecting actual versus planned versus forecast were considered vital.
Cost Control
The philosophy of the Sastech procedures is to set up a system whereby direct monitoring and control can be achieved.
Given the reimbursable contracts, Sastech had to increase the depth of control requirements to a very detailed level.
Cost Complications
The objective of the work breakdown structure was to provide management with a planned approach for project execution and early warning of deviations from plan.
Signature of contracts constituted a specific undertaking that there was nothing in the specifications, codes and contract terms which was inconsistent with responsibilities to carry out the work. Accordingly the term scope change was specifically defined as any significant change in the work and not merely a closer definition, a minor change in detail or an immaterial alteration in the manner in which the work was to be performed.
Cost Reporting
Reporting requirements were established for all concerned for the full duration of the project. Last deviation reporting was done at the time of occurrence with formal deviation reports submitted on a weekly basis and overall cost detail reports on a monthly basis.
MANAGEMENT OF QUALITY
Quality Policies
Quality systems have been evolving rapidly in recent years. The Sasol group of companies are now working towards total quality management. Sasol subscribes to a stringent quality improvement programme that stresses increased profitability through quality improvement. Quality is defined as conformance to requirements. In particular it is based on absolutes of conformance (not elegance), do the job right the first time and the performance standard of zero defects.
The quality control and assessment responsibility was placed with Sastech under the control of the project manager supported by the various engineering disciplines.
The philosophy adopted was that safety was of paramount importance and would not be sacrificed against time under any circumstances. The 2.6 million construction labour-hours spent on a 24-hour cycle without any lost time accident is an indication of the rigid safety procedures successfully applied on site. Exam procedures included items such as
- Safety meetings and reporting structures
- Total adherence to the South African M.O.S. act (Machinery and Occupational Safety act)
- Controlling of pipe blinds
- Handling and storage of chemicals on site, etc.
On 15 April 1988 the licensor decision was made and this was also the official kick-off date for the project.
As Sastech had very limited information at that time, a kick-off meeting was arranged with all major project participants to define the scope of work and establish the project plan of execution. The following is a list of topics discussed:
- Project Organisations
- Project Ad-ministration
- Planning, Scheduling, Cost Control and Estimating
- Engineering
- Licenser Interface
- Plan of Execution
- Construction
- Local Conditions
- Intermediate and Final Storage
- Commercial Procedures for Procurement
- General Items
The minutes of this meeting which took place from 18 April 1988 to 22 April 1988 was compiled. This document is an excellent example of the innovative methods that were applied in making such outstanding project results possible.
Plans and Procedures
The field erection of the C3 splitter required a great deal of coordination with the designated rigging and construction crew which created a requirement for scale models of the plants. The models contributed towards design, planning, construction and training purposes.
As far as the main construction contractors were concerned, the erection planning started at an early stage. The approach was to divide the plant into units and plan for prefabrication, erection, precommissioning and commissioning accordingly. This proved to be successful.
As a result of the extremely fast schedule, specific procedures had to be prepared to cater for the very difficult circumstances, such as a procedure for simultaneous construction and commissioning activities.
Documentation and Specifications
The philosophy followed was that, in general, International Standards and codes would apply. For civil and pipework the Sasol specifications were used and vendor specifications for packaged units, where no International Specifications were available.
A comprehensive document was compiled by Sastech, stating requirements with regard to:
- End-of-job documentation
- As-built documentation
- Drawing numbering, data sheets, code data books, etc.
Quality Audits
Representatives from Sastech had the right to inspect works, material, supplies and equipment at all reasonable times, for conformance to requirements. The approach of quality audits was vigorously adopted, espe cially prior to placement of large orders.
MANAGEMENT OF HUMAN RESOURCES
Administration
It is a fact of project management that much time is spent leading teams and dealing with people in groups. Team building is a matter of establishing mutual confidence and trust amongst a group of people. The aim on this project was to create a feeling of interdependence, with the result that the team felt shared responsibility for getting results.
A formal group was setup in the form of a task force, with the objective to achieve time, cost and quality targets. A special effort was required to convince our contractors to adopt a task force organisation, which proved successful in the end. The task force strategy did not prevent the establishment of informal groups that provided important extra channels of communication, promoted teamwork and satisfied social needs.
Behaviourial Knowledge and Interpersonal Management Skills
It was impossible to escape conflict, because objectives, values and needs of groups and individuals in the organisation did not always coincide. We believe that conflict may be a sign of a healthy organisation. Bland agreement on everything would be unnatural and enervating. There should be clashes of ideas and tasks and disagreements should be allowed. But conflict becomes counterproductive when it is based on personality clashes.
Byway of peaceful coexistence, domination or compromise, an attempt was always made to find a genuine solution rather than accommodating different points of view.
In hindsight, the main characteristics of the group were its cohesiveness, interdependency, standards of behaviour that influenced members in a positive manner, shared beliefs and values and the fact that greater results were achieved when working as a team.
MANAGEMENT OF COMMUNICATIONS
Audience
Communication was considered a critical factor in ensuring that requirements were met. This became particularly problematic because of the geographical position of the main parties (see Table 2).
To alleviate the problem it was necessary to establish a small multidisciplinary Sastech team in Europe. Without this it would not have been possible to make the necessary critical decisions within the very short period of time dictated by the schedule.
Process
The management style on the project was neither charismatic nor analytical, but rather a combination of the two. An autocratic approach is not as hard as it sounds, because you sometimes have to tell people what to do without argument. On the other hand, a democratic approach (which was not really soft) allowed people to know why they are doing things.
It has been said comically and in general that meetings are made up of the unfit, appointed by the incompetent to do the unnecessary, and that a camel is a horse designed by them.
Table 2. Licenser and Main Contractors
| The Licenser | |
| BASF | Ludwigshafen, Germany |
| Main Contractors | |
| Linde | Munich |
| Lurgi | Frankfurt |
| BKS | Pretoria (SA) |
| Lurgi (SA Procurement) | Johannesburg (SA) |
| Sastech | Secunda (SA) |
| FDSA | Secunda (SA) |
No! Meetings are only wrong when they waste time, fail to produce decisions, dilute responsibilities and concentrate on trivialities. Meetings did work on this project because of good chairmanship and effective participation for exchange of information and coordination.
Skills
Barriers to communications were overcome by using feedback, face-to-face communication and writing only for essential matters. Of course, rational thinking is only possible when emotions can be separated from facts.
Environment
The design and construction of the plant had to be in accordance with good engineering practice with safety of personnel and equipment considered of prime importance.
American Petroleum Institute (API) API-520 and API-521 standards were used as guidelines for safety systems design and were supplemented by specific safety procedures developed by Sastech.
Full attention was paid to the Atmospheric Pollution Prevention Act of South Africa.
MANAGEMENT OF RISK
Identification
Risk was considered in relation to deficient material and services, complaints, claims, liability schedule and cost.
The critically tight schedule under which the project was carried out made it imperative that all potential risks were identified and taken care of in a pro-active manner.
Potential risks and opportunities were identified in advance at the regular meetings and brought to the attention of the project manager for decision making where necessary.
As potential risks to safety, quality, cost, and schedule were identified they were scrutinised, discussed and analysed to determine the necessary means to eliminate, bypass or minimise the impact.
Table 3 depicts some of the unconventional project execution methods that were utilised in maintaining such a fast schedule and are examples of high-risk decisions that were managed very successfully.
Analysis by Simulation
In generation of a semi-definitive quality estimate, not all detailed information was available at the time. The uncertainty of an estimate thus implied risk, but the probability density function was obtained by means of Monte Carlo sampling on a computer. The complex and time-dependent interaction of variables involved were successfully addressed for the project.
In analysis of the management of risk, the question is undoubtedly, “What did we do right?” The approach was to focus firstly on effectiveness, that is, on the decision of what to do. It concentrated on opportunities. Secondly, efficiency came to mind. In short, it was a matter of doing the right things and to do it right, to produce creative alternatives to problems and to optimise utilisation of resources and equipment in an unconventional manner (see Table 3). Fortunately the Sastech environment allows one not to become obscured by bureaucratic machinery, but to manage for results. It is the end that counts, not the means.
Mitigation
It was always the approach to maintain a workable and harmonious relationship between all employees. The traditional problems in the South African environment of contractors recruiting personnel from another contractor did not really materialise. A minor problem did, however, arise when artisans left during factory shutdowns upon the lure of overtime pay on other sites. This was overcome for this specific project when, by way of publication in the Government Gazette., special permission was granted by the authorities to work extended hours.
One major problem was the shortage of skilled workers in South Africa. Even after an extensive recruiting exercise, we were forced to import some 700 skilled Third World Country nationals to supplement our work force. Although this created tremendous pressure on the management team, it was handled very successfully.
MANAGEMENT OF CONTRACTS AND PROCUREMENT
A total integrated approach was achieved through the work breakdown structure shown in Figure 1. This WBS is only an indication and does not reflect all the detail. All cost, schedule, material management and construction were tracked in accordence with this breakdown. This included labour-hours for engineering, procurement construction and commissioning as well as cost for materials and equipment.
Figure 3.
Figure 1. Work Breakdown Structure
INTRODUCTION
Sastech, a Division of Sasol Industries (Pty) Ltd., provides a service mainlyto the companies within the Sasol Group. The responsibilities of Sastech include research and development, project management, engineering, procurement and construction management services.
SastechEngineering Services consists of some 600 full-time employees located at Rosebank, Secunda and Sasolburg. Approximately 25 percent of its employees are graduates and specialise in the engineering disciplines.
Where and when the need arises, Sastech employs outside consultants and engineering and construction resources to meet the operating Companies’ requirements. These external resources are obtained from the leading emgineering companies in the world who are specialists in specific fields.
SPECIFIC AREAS OF ACTIVITY
Capital Projects
Sastech's involvement in the Sasol Group's capital investment projects covers the full spectrum of activities. These include, depending on the nature of the project, process design, detailed design, procurement of material, construction, project management, and management of contracts and contractors.
Front End Design and Engineering
Considerable emphasis is placed on the front end phase. During this front end phase, systematic studies are formally conducted in order to review risk and hazards and these studies continue throughout the project to ensure that the necessary action has been taken. Value management techniques are applied to major projects to ensure that the requirements regarding safety production, operating and maintenance are achieved.
Procurement
Most projects require the purchase of major equipment items (pressure vessels, heat exchangers, compressors,etc). These items are procured from reputable vendors who have the necessary expertise, facilities and experience. The items are manufactured to the Sasol and/or international codes and specifications and inspected, both during fabrication and on delivery, by Sastech's Quality Assurance group to ensure that specifications are met.
By working closely together on many projects, Sastech and its suppliers/vendors have developed a mutual understanding of the strict requirements that are applied.
Project Management
Sastech's structure is designed to cope with any project or task that the Operating Companies require. Multi task teams and full-time dedicated teams (task forces) are established as needed. These teams, which may include consultants, contractor, vendors and operating staff, are coordinated and managed by Sastech's Project Managers.
Control procedures, planning systems, priority scheduling, project documentation and contract management, as well as overall control, are amongst the functions carried out by Project Management.
SERVICES
Sastech provides a range of services to the Operating Companies in the Sasol Group. These include process studies; metallurgical and corrosion investigations and consultancy; design and drawing services; specialist technical advice; optimisation; and maintenance advice. This in-house Sastech facility not only assists the other companies, but also allows Sastech to continually add to their knowledge of the factory situations. Sastech's engineering skill, its knowledge of the plants and operating processes, together with the use of external expertise, creates a unique pool of skill that is used to reduce risks and to ensure built-in safety
Corrective Actions
In large operating plants problems occur. Sastech is able to provide skilled teams to assist the Operating Companies in finding solutions. The Sastech structure is flexible and teams can rap idly be formed in response to urgent requests. Priorities are reviewed and adjusted where necessary so that resources are allocated to the most critical jobs. Sastech's in-house multidisciplinary engineering resource provides the skills necessary to immediately tackle any situation that may arise.
Procurement
Because of the very short schedule, normal procurement practices would have without doubt extended the overall schedule. What was done was that in virtually every case, be it vessels, pumps, instruments, pipes or any other equipment, quotations were requested on very preliminary information. vendor selection was then finalised and a letter of intent placed. The moment detail information became available, work in the selected vendor workshops commenced immediately.
During this period the South African vendor workshops were near saturation levels. This forced Sastech to utilise four engineers to do physical expediting on a continuous basis to ensure that delivery dates were met.
Post-Contract Evaluations
Following achievement of plant operations, a performance guarantee had to be complied with. This acceptance test entailed a 72-hour uninterrupted operation at full plant throughput and under control of Sasol Polymers. Performance, process and utility consumption guarantees were either attained or improved upon. In fact, the capacity of propylene purification can easily be achieved at an increased purity of 99.9 percent versus the 99.7 percent weight percentage specified.
CONCLUSION
It is obvious that this project was unique in many respects.
Conceptual development, basic design, detail design, and procurement all began simultaneously. The licensor decision was taken on 15 April 1988, the detail design engineers, Lurgi, were appointed on the same date, and so was the appointment of the construction contractor, Fluor.
Each and every person on the project accepted the importance of getting the work done, and innovative methods and ideas were the order of the day to try and meet this tremendous challenge.
As an indication of the team's commitment to the project requirements, most of the project and engineering personnel worked in excess of 80 hours a week during the last two months of the project duration.
Propylene product is chiefly supplied to the new Polypropylene Plant at Sasol, the latter serving both the local and export market. Employment for 250 people has been created by establishing the two plants.
With calculations based on average prices for propylene and polypropylene, a conservative economic evaluation indicates that annual benefits from the replacement of import of propylene/polypropylene and the export of polypropylene will generate a massive R200 million/year saving in foreign currency for South Africa.
In the Final analysis
It is foreseen that with the availability of polypropylene the local plastics industry will be stimulated to a great degree, creating subsequent possibilities of further employment opportunities and export of completed plastic products.
Many local and international companics and organisations have acknowledge the Sasol Polypropylene Project as a world class achievement as was underwritten by receiving the Project of the Year Award from the PMI South Africa Chapter in 1990.
G.J. (Gert) van Zyl is presently employed by Sastech as the head of their Project Division in the Sasolburg (South Africa) operations.
He is a certificated mechanical engineer under South African law and the holder of a Bachelor Degree of Commerce from the University of South Africa.
Mr. van Zyl has extensive experience in project management and has served as a project manager for six years, managing a variety of projects mainly in the materials handling and petrochemical fields. In 1988, the Project Team under his leadership received the prestigious Project and Systems award from the South African Institute for Mechanical Engineers for a considerable size materials handling de-bottlenecking project.
Mr. van Zyl is a member of the PMI South African Chapter and serves as Vice President, Public Relations.