Project management in thermal power plants

Project management activity for thermal power plants

1. Project Management of Thermal Power Plant
Best Practices

2. QLeNPro
06-03-2020 Prashant Alekar 2
Agenda
•Installed Capacities in India
•Main Players
•Thermal Power Plant
•Contractual Requirements
•Main Challenges
•Project Management Process
•Best Practices
•Discussions

3. QLeNPro
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Installed capacity in India (31.03.2017)
Total: 331 GW
58%
7.5%
15%
10%

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Installed Capacity breakup sector wise & type wise

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Main Players in thermal business > 660 MW thermal plants
1.BHEL Complete Solution Provider 20000 MW pa
2.L&T Complete Solution Provider 45000 MW pa
3.GE Complete Solution Provider 4000 MW pa
4.JSW Toshiba Only TG Island* 3000 MW pa
* -For Boiler island, ties with boiler manufacturers like Doosan, Thermax –
Babcock.

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1000 MW Power Station
5000 crores
Output
Coal 12000 tons / day
Inputs
Furnace Oil 101 Cu. m/
day
Water 98000 Cu. M /
day
Power 80 MW/day
Power 80 MW
Power 920 MW
+
Ash 4200 tons / day
CO2 30000 tons / day SO
2
+ NO
2
680 tons / day
Inputs and Outputs for 1000 MW Power Station

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PULVERIZED COAL FIRED THERMAL POWER PLANT
BOILER ISLAND
STG ISLAND
BALANCE OF PLANT
BALANCE OF PLANT

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DEAERATOR
HIP TURBINE
LP TURBINES
GENERATOR
CPU
HPH 7A & 7B
HPH 8A & 8B
HPH 6A & 6B
LPH 3 & 4
CONDENSER
CW PIPING
LUBE OIL AREA
BFP
TURBINE BUILDING VIEW

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GROUND FLOOR
EL. 0.000M
MEZZ. FLOOR
EL. 9.000M
OPERATING FLOOR
EL. 17.000M
HEATER FLOOR
EL. 24.000M
DEAERATOR FLOOR
EL. 31.000M
TDBFPTDBFP EXHAUST
STEAM DUCT
CONDENSER
TURBINE BUILDING CROSS SECTION VIEW

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660, 800MW Class Turbine
1000MW Class Turbine
HIP Turbine
LP Turbine HP TurbineIP Turbine
Generator
500 MW Class Turbine
HIP Turbine
OPTIMIZED COMBINATION OF TURBINE
COMPONENTS FOR VARIOUS POWER OUTPUT

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
Subcritical : Below 220.6 bar (3208 psi),
& superheated

Supercritical : 220.6 bar (3208 psi) and above &
374
o
C (706
o
F ) and above

Ultra-Supercritical : 220.6 bar (3208 psi) and above &
593
o
C (1100
o
F )
SUPERCRITICAL/USC PRESSURE RANGE

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HEAT FLOW -THERMAL POWER PLANT (SUBCRITICAL)
44.5 -48%
12 -15%
35 -41.5%
POWER PLANT HEAT FLOW

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HEAT FLOW -THERMAL POWER PLANT (SUPERCRITICAL)
12-13%
39.5 -42.5%
Heat
Input
from Fuel
100%
43.5 -45.5 %
POWER PLANT HEAT FLOW

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HEAT RATE ( TG cycle)
Amount of heat ( kJ or k cal ) consumed to generate 1
unit of Electricity ( kWh)
expressed as k cal / kWh or kJ / kWh => basically
dimensionless
=> k cal, kJ and kWh are units of Energy
Inverse of Efficiency
1925-1950 -2050 k cal / kWh (sub-critical)
1740 -1810 k cal / kWh (Ultra super-critical)
HEAT RATE

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Main Areas in a Power Plant
Boiler Island
Turbine Generator Island
Switch Yard
Coal Handling Plant
Oil Handling Plant
Water Handling Plant
Cooling Towers & Cooling Water Pump House
Ash Handling Plant

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Main Areas in a TG Island
Steam Turbine, Generator & Auxiliaries*
Steam Condensing Plant & Accessories
Feed Heating System & Accessories
Boiler Feed Pump
I&C System*
Piping, Valves & fittings*
HP/LP Bypass Systems
Auxiliary Steam & Cooling Water System
( * -Approx. 20% of Project Value)

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Contractual Requirements for any Power Project
Project schedule 42 / 45 months for unit 1/2
(Down from 51/57 months before)
Heat Rate 1750 Kcal/KWh
(Down from 1850 Kcal/Kwh before)
Electricity Consumption by plant 6-7% of rated capacity

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Payment Terms
Plant & Equipment
Milestone % Amount
Advance (interest free) 10%
Dispatch Ex-w/CIF 60%
Erection & Commissioning 20%
Successful PG test & Operational Acceptance Certificate10%
Mandatory Spares and Recommended Spares
Milestone % Amount
Dispatch Ex-E/CIF 75%
Receipt at Site 25%
Services
Milestone % Amount
Advance (interest free) 10%
Progressive Completion of Services 80%
Successful PG test & Operational Acceptance Certificate10%

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Liquidity Damages
Parameter (Per Unit) Amount for LD (INR)
Steam Generator output capacity 3,12,96,000/-
Steam Generator Efficiency 8,18,08,000/-
Turbine Cycle Heat Rate 3,84,28,000/-
Turbine Generator Gross Output 94,000/-
Unit Auxiliary Power Consumption 2,14,000/-
CAP
Performance-10% of the Contract price
Delay-10% of the contract value of each unit
Total Liability –limited to 15% of the Total Contract Value
Liquidated Damage for Time delay
0.5% per week of delay of the contract value
(LD will be divided as 60% for First & 40% for Second Unit)

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Defect Liability
Period
18 months from Completion of Facilities/Trail run.
Or
12 months from PG Test, whichever is earlier.
Latent Defect
Period
(5) years from the completion of Trail Operation.
Defect Liability
for spares
12 (twelve) months from the scheduled date of commercial operation
of main equipment/plant, if manufactured as continuous operation.
Arbitration Law In case of Foreign Contractor/Collaborator -United Nations
Commission on International Trade Law (UNCITRAL) Arbitration Rules
of 1976
In case of Indian Contractor -Arbitration & Conciliation Act -1996
(India)
The Place for Arbitration shall be Jabalpur.
Warranty / Defect Liability & Arbitration Law

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Major Milestones in a Power Project
•Notice To Proceed Zero Date
(10%)
•Completion of Engineering Activities15 Months
•Start of Dispatch 21
st
Month
(60%...
•Completion of all dispatches 28
th
Month
…..)
•Erection 26
th
to 34th Month
(20%...
•Commissioning 39
th
Month
•Trail Run & Handover 42
nd
Month
…)
•PG test 45
th
Month
(10%)

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Main challenges
•Long Project Duration
•Managing Cash flow
•Transferring Warranty and Latent Defect conditions to suppliers
•Risks on account of external factors like coal availability,
environmental issues, Power Demand issues ( End Customer’s
Responsibility).
•Logistics
•Coordination with multiple agencies
•To expect the unexpected and keeping plan B Ready.
•Managing Scope, Change Management, Claims
•Project Closure

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Agencies Involved
•Customer
•Consultant, Inspection Agency
•Financing Agency
•Regulatory Bodies in the state
•NGOs in the state
•Neighbours around the project site
•EPC Contractor
•Engineering Agency / Consultant
•Site Management
•Project Management Organization
•Project Manager (TG Island)
•Engineering
•Marubeni Corporation
•Procurement
•Suppliers
•Quality Manager
•Erection & Commissioning
•Marketing
Stake Holder -Communication

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Project initiation
•Selection of Project Manager
•Kick off Meeting internal
•Project Organization
•Kick off meeting with EPC contractor & End Customer
•Issuing of Project Charter

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Project initiation
Kick off Meeting
•Marketing hands over the project to Project Manager
•Meeting called by Marketing and participated by Project
Manager, Engineering, Quality, Procurement, Production,
Planning etc. Heads.
•Marketing provides details of project like specifications of
project, location, end customer, Overall Project Schedule and
Project milestones,
•Commercial terms like Payment Terms, BG & DJU, Warranty &
Defect Liability, Liquidity Damages etc.
•Functional requirements like Heat Rate and Auxiliary Power
Consumption etc.
•Project Requirements on Quality during stages of Project,
Supplier Approval, Document Approval, E&C etc.
•Hands over all the documents to Project Manager, who is
responsible for project.

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Project initiation
•CE to issue the project charter. PM sends it to all concerned with
contract documents
•Formation of Project Organization under Project Manager
•Kick off meeting with EPC contractor and End Customer.
•Project manager to get the advance from customer for starting the
project.
•Identification of Stakeholders for the project
•End Customer
•Consultant to End Customer
•Consultant for Performance Guarantee Test
•Customer Inspection Agency
•EPC Contractor
•System Design Agency
•Mitsubishi Hitachi Power Systems for Steam Turbine Design
Mitsubishi Electricals for Generator Design
•Suppliers to L&T
•Etc……

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Planning
•DOR between L&T and Marubeni Corporation, Make or buy
•Approvals from Govt. on Import duty waiver
•Design Plan
•from Mitsubishi, Japan for Steam Turbine and Generator Design
•Design Plan for design of Auxiliaries
•Document Submission Plan
•Engineering, Procurement & Manufacturing Plan for long cycle
parts
•Supplier Approval Plan
•Procurement Plan
•Quality Documents Approval Plan
•Erection & Commissioning Plan
•Creation of WBS Structure
•Creation of Billing Breakup Units

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Planning
•Detailed Project Schedule
•Plan Cash flow
•Risk Management Plan
•Communication Matrix –L&T –EPC-MC-End Customer –Consultant
•Project Specific Procedures
•Resource Plan

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Engineering schedule of HP-IP separated frame
AprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAug
-28-27-26-25-24-23-22-21-20-19-18-17-16-15-14-13-12-11-10-9-8-7-6-5-4-3-2-10
HP Turbine
material procurement
manufacturing
material procurement
manufacturing
material procurement
manufacturing
material procurement
Outer casing
Inner casing
Blade ring
Dummy ring
Rotating blades
manufacturing
Rotor
Stationary blades
2015 2016 2017
Pedestal
material procurement
manufacturing
material procurement
manufacturing
manufacturing
material procurement
manufacturing
material procurement
Tool
PPS
Manufacturing Assembl
Manufacturing
Tool
PPS
Tool
PPS
Tool
PPS
Tool
PPS
Manufacturing
Manufacturing
Manufacturing
Tool
PPS
・
IGS file
Manufacturing Rotor
Tool
PPS
・
IGS file
Manufacturing
Tool
PPS
Manufacturing
Plate
Fabrication
TransportationCastingMaking patternMaking PO
HSBRotor
B/Rassembly
B/Rassembly

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Execution
•Engineering
•Engineering of Steam Turbine & Generator by MHI companies
•Engineering of Auxiliaries by L&T / Supplier
•Document Submission & Approval
•Procurement
•Supplier Approval by End Customer
•Raw Material Procurement for long cycle items
•Other Raw Material Procurement
•Procurement of Auxiliaries
•Quality Management
•Quality Document Approval
•Inspection and Certification of Items
•Handling Non Conformities

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Execution
•In-house Manufacturing
•Raw Material Procurement
•Process Plan
•Tools Procurement
•Manufacturing, Assembly & Testing
•Customer Inspection
•Logistics
•Generator Stator, Rotor and Turbine Rotors
•Items directly from Suppliers to Site
•Imported items to site
•Other items
•Erection & Commissioning
•Erection of Steam Turbine, Generator and Auxiliaries
•Commissioning
•Various Testing, Handover and Performance Guarantee Tests

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Execution
•Change Management if any
•Risk Identification, Review and Resolution
•Customer Training
•Billing and Receipts

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Monitoring & Controlling -Monthly Progress Report
•Executive Summary
•Project Profile
•Overall progress of the project
•S-Curves
•Milestones status
•Area of Concern –delays, change orders, claims, risks, quality issues etc
•Physical dispatches during the month
•Detail Engineering information status
•Material receipt status
•Erection /Construction status wrt. Milestones & L2 schedule
•Site enabling works
•Billing/ Collection/ Outstanding status
•Site Photographs of important site activities
•Hold on construction /erection / manufacturing activity along with reasons &
help needed from specific agency
•Man-Machine deployment status
•Safety report
•Reporting of various quality checks as per FQP

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Project progress
Reason:
TCS & TPS Ordering delayed by 5 Months due to vendor approval
issue (LTCA)
LP Forged Blade delay in delivery (L-1R & L-2R)
Pedestal Fabrication Slow progression
Project
Plan
%
Achieved
%
XXX -1 48.07 47.91
XXX -2 35.02 36.80

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ID TaskName Start Finish% CompleteNumber1
53
Procurement Thu2/18/16Tue1/3/1777% 0
54
Manufacturing Tue1/3/17Fri6/2/170% 0
55
HPROTOR 61% 0
56
Procurement
Tue 9/1/15Fri6/2/17
Tue 9/1/15 Wed10/5/16100% 0
57
Manufacturing 10% 0
58
IP
Sat8/6/16Fri6/2/17
Tue 9/1/15 Thu8/31/1752% 0
59
IPASSEMBLY Fri 6/2/17 Wed8/16/17 0% 0
60
61
IPDISPATCH
Engineering
Wed 8/16/17
Fri 1/22/16
Thu 8/31/17
Thu 2/23/17
0%
71%
0
0
62
IP OUTERCASING Thu9/17/15Fri6/2/1745% 0
63
64
Procurement
Manufacturing
Thu 9/17/15
Wed 8/31/16
Wed 8/31/16
Fri 6/2/17
80%
0%
0
0
65
IPROTOR 54% 0 Tue 9/1/15Fri6/2/17
Tue 9/1/15 Wed10/5/16
66
67
Procurement
Manufacturing
95%
0%
0
0
GENERATOR
Sat8/6/16Fri6/2/17
Thu 10/1/15 Mon8/14/17
68
69
Engineering
48%
68%
0
0
70
GENERATOR ASSEMBLY &
TESTING
Thu 10/1/15Fri 11/4/16
Thu 6/1/17 Mon 7/31/17 0% 0
71
GENERATOR STATOR
DISPATCH
0% 0
72
GENERATOR ROTOR
DISPATCH
0% 0
73
STATOR 30% 0
74
Procurement 55% 0
75
Manufacturing 20% 0
76
ROTOR 58% 0
77
Procurement 100% 0
78
Manufacturing 20% 0
79
VALVES 42% 0
80
Engineering 65% 0
81
Procurement 58% 0
82
Manufacturing 0% 0
83
Assembly 0% 0
84
Dispatch
Mon 7/31/17Mon 8/7/17
Mon 8/7/17 Mon 8/14/17
Mon 11/9/15 Sun
6/4/17 Mon 11/9/15 Sun
7/17/16 Wed 4/27/16
Sun 6/4/17
Mon 11/9/15 Sun
6/4/17 Mon 11/9/15Tue
8/23/16 Mon 8/8/16Sun
6/4/17 Tue 9/22/15 Mon
10/16/17 Tue 9/22/15 Thu
10/6/16 Sat 11/21/15 Tue
11/15/16 Tue 11/15/16Wed
8/2/17 Wed 8/2/17 Sun
10/1/17 Sun 10/1/17 Mon
10/16/17
0% 0
85
33% 0
86
TURBINE AUXILIARIES &
PIPING
Engineering
Thu 11/26/15 Thu11/30/17
Thu 11/26/15 Wed11/2/1655% 0
87
Procurement Sun 4/24/16 Mon5/29/1748% 0
88
89
Manufacturing
Dispatch
Mon 5/29/17 Thu 11/30/17
Fri 9/1/17 Thu 11/30/17
0%
0%
0
0
90
22% 0
91
GENERATOR AUXILIARIES &
PIPING
Engineering 65% 0
92
Procurement 24% 0
93
Manufacturing
Fri 10/16/15 Thu 11/30/17
Fri 10/16/15 Mon 6/27/16
Wed 4/13/16 Fri
2/17/17 Fri 2/17/17 Thu
11/30/17
0% 0
94
Dispatch Fri 9/1/17 Thu11/30/17 0% 0
95
TCS/TPS PANEL AND
OTHER PARTS
19% 0
96
Engineering 30% 0
97
98
Procurement
Dispatch
Fri 9/11/15 Thu 11/30/17
Fri9/11/15Fri3/24/17Thu
3/24/16Wed8/2/17Wed
8/2/17Thu11/30/17
10%
0%
0
0
0%
61%
100%
10%
52%
0%
0%
71%
45%
80%
0%
54%
95%
0%
48%
68%
0%
0%
0%
30%
55%
20%
58%
100%
20%
42%
65%
58%
0%
0%
0%
33%
55%
48%
0%
0%
22%
65%
24%
0%
0%
19%
30%
10%
0%
O N DJ
1,2015
F M
Half 2, 2015
A M J J A S
Half 1, 2016
O N D J F M
Half 2, 2016
A M J J A S
Half 1, 2017
O N D J F M
77%
Half 2, 2017
A M J J A S
Half
Nproject XXX-1

36. QLeNPro
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Analysis and Conclusion
1.High amount of localization at a
very fast pace.
2.Proper Supplier Selection. Due
to first time ordering.
3.Quality issues from supplies
and also during in house
manufacturing, resulting in
delayed and incomplete
deliveries. Putting strain on
receivables.
4.Early purchases to order to
avoid uncertainties.
5.Delay in release of payment by
customer due to quality issues
at site.
6.Extra money spent due to
rework at site. (1-2 crores).
7.Failure of some of the localized
items during commissioning at
site. Required to look into
localization process.
8.The assumption was to supply
the items in line with erection
schedule which delayed the
supplies. However, the
procurement was done keeping
in mind the target dates for
supplies.
Cash Flow -monitoring

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Project Closure
•Summary of the project
•Project summary
•Supplies
•Main Product
•Spares
•Training
•Documentation
•Records
•Software
•Manuals
•NCRs
•Certificates Received / to be received from Customer
•Commercials
•Receivables
•Claims settlement
•BGs, Site inventory, etc.
•Project Learning

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Project Management Best Practices
•ProjectIntegration-Linkingsoftissueslikeschedulefordocument
submissionsandapproval,supplierapprovals,qualitydocumentapprovalsto
projectschedule,Contingencyplanspreparedincaseofdelays.
•Standardization–WBS/BBUstructure,Longcycleitemsplanning,Change
Management,QualityPrograms,SiteManagementetc.
•CapturingLearningfromeachprojectandimplementingtheminnext
projects.
•RiskIdentification&review(convertingriskintoopportunity)
•CashFlowManagement
•Tonegotiatesimilarpaymentconditionswithsuppliersasdefinedin
maincontract
•Toreceiverawmaterialaslateaspossibleandmakethedeliveriesearly
(Lean,ManufacturingManagement)
•Ensuringpaymentfromcustomerwithin30days.
•Scope,ChangeandClaimsManagement
•CommunicationManagement
•CompetencyMappingandupgradationofErection&CommissioningStaff
•SparesManagement

39. QLeNPro
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Thank You