Project Management in the Oil and Gas Industry

Table 3.5 PERT calculation.
V
S
C.P.
Ta
To Tm Tp Activity
Item
0.44
0.67
*
3
1
3
5 Mobilization
100
0.694 0.83
*
8.3
6
8
11 Excavation
200
1.36
0.5
*
7.17
8
10
15 (Pouring concrete 
foundation and piping 
support)
300
0.11
0.33
4
3
4
5 Install the piping
400
0.028 0.167
*
1.17
1
1
2 Install the mechanical 
package
500
0.11
0.333
*
2.17
1
1
3 Put the grouting 
600
0.694 0.833
3
2
5
7 Connect the piping
700
0.111 0.333
*
1.5
1
2
3 Commissioning and start up
800

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Pitfalls in Time Schedule Planning 105
to 44000 man hours. Noting that man hours reflects to money, the cost is 
around, for this project, two million USD. As if you have a high fee rate per 
man-hour, the man-hour may be reduced to less than above. It depends on 
how the engineering firm approaches their proposal as some engineering 
firms reduce the number of man-hours and increase the cost per man-
hour and vice versa according to their strategy and the market share in this 
time period.
The progress of an engineering activity is required to be identified for 
control, so you should put some basics to control. If the engineering firm 
will do the work, the progress measurement should be identified and be 
agreed upon by the client and the engineering firm before starting the proj-
ect. For example, in a case of study reports, the following is an example for 
the progress measured as shown in Table 3.7.
For different engineering discipline activities, the measured progress 
should be defined. As in oil and gas projects, preparation of P& ID is very 
23.31
26.0