Integrated Complex Projects Management Practice of HMS Group
Y.A. Osipenko, Deputy CEO, Certified Project Manager, HYDROMASHSERVICE (HMS Group);
P.N. Bilenko, head of ESPO Department, Registered Project Management Professional, HYDROMASHSERVICE (HMS Group);
Both in Kazakhstan’s oil and gas sector as well as that of the Russian Federation, there is an increasing demand for highquality services in implementing complex projects for development and delivery of sophisticated technological systems and turnkey facilities construction (EPC1). While implementing large multilevel projects, oil and gas companies are actively working at costs optimization and selection of the most efficient design and state-of-the-art technical solutions.
The main problems oil and gas companies face while implementing large complex projects are insufficient operational experience of local contractors in the format of EPC-projects which lead to lengthy terms and a low quality of development of design solutions, impossibility to provide manufacture of state-of-the-art equipment, as well as improper implementation practice and delay in construction terms.
HMS Group, a large machinebuilding and engineering holding,is one of the first Russian companies to actively develop the business function of implementing complex projects on a turnkey basis. The Group’s main competitive advantages in implementation of EPC-projectsare strong scientific andproduction base, competence indeveloping projects managementsystem and a dedicated team of professionals.
Successful experience inimplementing some complex projectshas allowed HMS Group to forman efficient instrument in designingand construction of infrastructureof oil and gas and gas-condensatefields, oil and gas processing andtransportation facilities, trunk andfield pipelines, as well as the deliveryof sophisticated technologicalequipment.
The major engineering projects implemented by HMS Group in two recent years are the projects for design development, production, testing, procurement and installation of over 50 unique trunk pump units for pipeline systems of ESPO and Purpe-Samotlor.
The following design, production and engineering assets of HMS Group have been involved in the projects: managing company HMS Group, Nasosenergomash Sumy, VNIIAEN and HYDROMASHSERVICE (the Group’s associated trading and engineering company). During the implementation of ESPO and Purpe-Samotlor projects, the ample opportunities of HMS Group’s assets were united by the integrated corporate project management system (CPMS, Fig. 1), including all instruments needed for successful implementation of sophisticated EPC-projects in oil and gas industry.
In project management, HMS Group uses a matrix scheme with a strong matrix: in the beginning of implementation of the project interfunctional team of specialists is formed who later solve the tasks together with the heads of functional divisions. The project team includes specialists of the managing company, design institute, basic production enterprise and operational company.
The project’s team is formed in such a way that professional skills of its members and their key characteristics comply with national requirements to the competence of specialists (circle 01 CPMS). The project team works out and submits to the interested specialists and top management of the operating company (including the curator2 and the project’s customer) and the enterprises participating in the project, the project’s presentation, work breakdown structure, matrix of responsibility and project charter (a basic package of the project instruments, circle 02 CPMS).The project’s presentation is followed by coordination and approval of these instruments.
The project head, together with the team develop work breakdown structure (WBS, circle 03 CPMS), including the main package of works decomposed up to final tasks. On the basis of WBS the network schedule of the project and other instruments of timeline management system are built: production, delivery, installation and commissioning schedules.
These schedules are promptly approved by the curator, the project’s customer, and heads of design institute and production enterprise and are entered into the Product Data Management/PDM-system to enable the project team to work with them cooperatively.