Effective Front-End Loading Management - Most Occurred Flaws in FEL Execution

Abstract Project Management team aims to strive for 100% success all the time. it's no secret that sometimes projects fail due to various reasons. But a project failure doesn't have to be the end of the story. Project failures can often offer valuable lessons for future project planning. Given the magnitude of investment observed in an Upstream Projects, it is necessary to adopt appropriate methods and processes to ensure the economic viability of the projects, as well as to effectively control the fulfilment of scope, schedule, quality and risk mitigation. The oil and gas industry has consistently used the combination of both methodologies of the PMI and IPA in the development of major projects, with particular attention on the front-end loading methodology (FEL), which combines an approach of so-called "rolling wave planning", with a vision of technical and cost integration in the light of other Project execution techniques. Certainly, most of Capital projects had fulfilled all the mandatory Front-End Loading (FEL) requirements set by an organization. However, at sanction gate only very few projects are allowed to proceed for execution, and rest are directed to redo or retrofit the FEL's. This Paper aims to capture the most occurred flaws in FEL execution of Upstream Oil & Gas Projects as below: Over Design & Gold PlatingIncomplete Technology SelectionPoor definition of Brownfield Works & Lack of Interface ManagementUnderstating Infrastructure RequirementsLow Stakeholder EngagementUnresolved Risks & UncertaintiesEstimating ErrorsOverly Optimistic Economics In addition, it also presents recommendations to improve the FEL execution and minimize the potential design changes during Project execution. It can be seen clearly all the above issues are often occurring in most of the Capital projects during FEL execution. These findings can be viewed as a lesson learned approach for all Oil & Gas Upstream capital Projects. This will guide Owners Project Management team better understanding of FEL issues at upfront while developing new projects or executing the FEL phase within budget, on schedule with desired quality.