Project Management in the Oil and Gas Industry

Day
0.45
0.05
Figure 3.11 Probability distribution.
Table 3.6 Percentage of man hour in engineering phase
Discipline activity
Percentage of the man hour
Project management
25%
process
12%
Mechanical
7%
Piping and layout
16
Electrical
8%
Control and Instrument
3%
Structural engineering
17%
Pipeline 5%
HSSE 7%

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106 
Project Management in the Oil and Gas Industry
critical, so the most practical progress measurement will be as follows in 
Table 3.8.
For procurement services, the following Table 3.9 presents the tradi-
tional progress for measuring percentages.
The requisition of bulk materials like steel structure, piping, electrical 
cables, or others is based on the material take offs (MTO) and, in most 
cases, it will be issued in three MTOs. The following weights are to be 
applied for bulk MTO:
First MTO requisition 65%
Second MTO requisition 25%
Third and final MTO requisitions 10%
For the equipment delivery, mile stone progress will use as Table 3.10 as a 
guideline. It defines the percentage progress after finishing the mile stones.
Table 3.7 Engineering report progress measurement guideline.
Activity Progress 
percentage
Issue draft to the client
30%
Completed document review by the client
50%
Incorporate the client comments
80%
Final report approval
100%
Table 3.8 Engineering preparation for P&ID.
Activity
Progress percentage
Study and prepare draft or sketches
20%
Completed document review by the client
60%
Issue for design
75%
Issued for construction finally without hold
100%