Engineering Procedure 22 December 2021

SAEP-367
Value Improving Practices
Document Responsibility: Project Management Office Standards Committee

Previous Revision: 03 May 2020 Next Revision: 15 July 2026

Contact: PMOD/Project Optimization Division – General Supervisor Page 1 of 45
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 Document Responsibility: Standards Management Committee SAEP-367
Issue Date: 22 December 2021
Next Revision: 15 July 2026 Value Improving Practices

Contents
SUMMARY OF CHANGES ..................................................................................................................................... 4

1 SCOPE ......................................................................................................................................................... 6

2 CONFLICTS AND DEVIATIONS ...................................................................................................................... 6

3 REFERENCES ................................................................................................................................................ 7
3.1 SAUDI ARAMCO REFERENCES ............................................................................................................................. 7
4 TERMINOLOGY ............................................................................................................................................ 7

4.2 DEFINITIONS .......................................................................................................................................... 10

5. VALUE IMPROVING PRACTICES ................................................................................................................. 11

6 REQUIREMENTS/ INSTRUCTIONS .............................................................................................................. 12

6.1 PLAN IMPLEMENTATION.................................................................................................................................. 12
6.2 DEPLOY VIPS ................................................................................................................................................ 12
6.3 PERFORMANCE AND CONTROL ......................................................................................................................... 13
6.4 PROCESS MONITORING ................................................................................................................................... 14
6.5 LESSONS FROM VIPS ...................................................................................................................................... 14
7 VALUE ENGINEERING ................................................................................................................................ 15
7.1 VE STUDY CRITERIA/ IMPLEMENTATION CRITERIA ................................................................................................ 15
7.2 DBSP PHASE ................................................................................................................................................ 16
7.3 PROJECT PROPOSAL PHASE .............................................................................................................................. 16
7.4 ADDITIONAL VE REQUIREMENTS....................................................................................................................... 16
7.5 VE PROPOSAL IMPLEMENTATION AND REPORTING REQUIREMENTS ............................................................................... 17
7.6 VE DELIVERABLES ................................................................................................................................................ 18
8 BEST PRACTICES ........................................................................................................................................ 19
8.1 PROJECT PLANNING AND TEAM ALIGNMENT (PP&TA) ......................................................................................... 19
8.2 CONSTRUCTABILITY ........................................................................................................................................ 22
8.3 PLANNING FOR STARTUP (PFSU) ...................................................................................................................... 24
8.4 PROJECT DEFINITION RATING INDEX (PDRI) ....................................................................................................... 26
8.5 SCOPE CONTROL AND CHANGE MANAGEMENT (SC&CM) .................................................................................... 27
9 PROJECT KNOWLEDGE WORKSHOPS ......................................................................................................... 27
9.1 LESSONS LEARNED PROGRAM KNOWLEDGE ........................................................................................................ 27
9.2 ENGINEERING KNOWLEDGE ............................................................................................................................. 30
9.3 POST PROJECT APPRAISAL KNOWLEDGE ............................................................................................................. 31
9.4 OPERATIONS KNOWLEDGE............................................................................................................................... 31
10 RISK MANAGEMENT .............................................................................................................................. 32
10.1 PRM IMPLEMENTATION ................................................................................................................................. 32
10.2 PRM COORDINATION..................................................................................................................................... 34
10.3 PRM DELIVERABLES ....................................................................................................................................... 34
11 INTERFACE MANAGEMENT (IM) ............................................................................................................ 35

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11.1 INTERFACE MANAGEMENT PROCESS.................................................................................................................. 35

11.2 IM IMPLEMENTATION..................................................................................................................................... 36
11.3 NUMBER, TYPE AND METHOD OF INTERFACE POINTS ........................................................................................... 36
11.4 INTERFACE POINTS DOCUMENTATION ................................................................................................................ 36
11.5 INTERFACE MANAGEMENT PLAN ...................................................................................................................... 36
11.6 DELIVERABLES ............................................................................................................................................... 37
12 EXECUTION PHASE HANDOVER REVIEW ................................................................................................ 37

13 RESPONSIBILITIES .................................................................................................................................. 38
13.1 PMOD........................................................................................................................................................ 38
13.2 IPT LEADER .................................................................................................................................................. 38
13.3 VIPS FACILITATORS ........................................................................................................................................ 40
13.4 OTHER DEPARTMENTS (INCLUDING PROPONENTS) ............................................................................................... 40
APPENDIX A - OPTIMUM IMPLEMENTATION TIMING FOR VIPS AND SUMMARY OF VIPS CRITERIA.................. 42

APPENDIX B - SAUDI ARAMCO PROJECTS PORTFOLIO CHARACTERIZATION ...................................................... 43

APPENDIX C – VIP ACTION ITEMS WORKSHEET ................................................................................................. 44

DOCUMENT HISTORY ........................................................................................................................................ 45

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 Document Responsibility: Standards Management Committee SAEP-367
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Summary of Changes
Paragraph Number Change Type
(Addition, Modification, Deletion, Technical Change(s)
New)
Previous Revision Current Revision
(03 May 2020) (22 December 2021)
Cover page Cover page Deletion Deleted reference to
procedure for non-CMS
projects.
3 3 Modification Included reference to
standards cut-off date per
SAEP-14
3.1 3.1 Deletion Removed references not
included in the body, added
required references
6.3 6.3 Clarification Clarified approved facilitator
requirements.
6.3 6.3 Addition Added requirement for
workshop feedback, new
reporting requirements (VIPIT)
and IPT Leader approval of
VIP deliverables.
7 7 Clarification Clarified approved facilitator
requirements.
7.2/7.3 7.2/7/3 Addition Added 30-day planning
requirement for DBSP and PP
VE.
7.4 7.4 Addition Added requirements for
Project Technical Package
brownfield Constructability.
7.5 7.5 Addition Added requirement for P&CSD
and CSD to review VE
proposals, as applicable.
7.6 7.6 Addition Added requirements for VE
Idea Log and justification
requirement for rejected high-
value VE proposals.
8.1 8.1 Clarification Embedded SCDR into PP&TA.

8.1 8.1 Addition FEL3 TDI made mandatory.

8.1 8.1 Clarification Clarified PP&TA deliverable

requirements.
_ 8.1.1 Addition Added new BEAM practice
and requirements.
8.2 8.2 Addition Added requirement for
construction professional
attendance at Constructability
workshops.

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8.2 8.2 Addition Added new requirement for

Project Execution Technology
study.
8.2 8.2 Addition Added new responsibility for
Constructability Log update
and review.
8.3 8.3 Addition Added new requirement for
brownfield projects to consult
with OSPAS.
8.3 8.3 Addition Added new requirement for
Startup Execution Plan.
8.4 8.4 Clarification Clarified frequency, optimum
timing, deliverables and
reporting of PDRI workshops.
10 10 Clarification Clarified facilitator
requirements for PRM
workshops.
10.1 10.1 Modification Made PRM requirement type
mandatory.
10.1 10.1 Addition Added requirement for ERM
requirements for MC
presentations and program
risk management.
10.2 10.2 Clarification Clarified RM responsibilities.

10.3 10.3 Modification Revised PRM deliverables.

12 - Deletion Deleted Capital Efficiency

studies.
13.2 13.2 Modification Revised IPT Leader
responsibilities to include
approval of final deliverables,
validation of commercial
impact and cost avoidances,
dispute resolution and
attendance requirements.
Appendix A Appendix A Addition Added BEAM requirement.

Appendix A Appendix A Deletion This process is embedded

within schedule development
techniques conducted by PMD
and not required as a stand-
alone VIP.
Appendix C Addition Added VIP Action Item
tracking sheet.

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1 Scope
This procedure outlines the requirements of Value Improving Practices (VIPs)
during project planning and execution phases. The procedure is not intended to
give instructions on the engineering effort, but covers requirements for VIPs that
are applicable during FEL1/Business Case, FEL2/Study, FEL2/DBSP,
FEL3/Project Proposal, Detailed Design, and Construction phases. This
procedure is applicable only to projects using the new Capital Management
System (CMS). VIP requirements include:

• Value Engineering (VE) including Process Simplification and Design-to-

Capacity during FEL2/DBSP and FEL3/Project Proposal.

• Best Practices (BP) regarding project cost, schedule and quality improving
techniques, during FEL2/DBSP, FEL3/Project Proposal, Detailed Design,
and Construction phases.

• Project Knowledge Workshops (PKWs) during DBSP, Project Proposal,

Detailed Design, and Construction phases.

• Project Risk Management (PRM) during FEL1/Business Case, FEL2/Study,

FEL2/DBSP, FEL3/Project Proposal, Detailed Design, and Construction
phases.

• Interface Management (IM) during FEL2/DBSP, FEL3/Project Proposal,

Detailed Design and Construction phases.

This procedure is not applicable to the value engineering studies performed on

any of the Mandatory Saudi Aramco Engineering Requirements documents.
Saudi Aramco Best Practice document SABP-A-040 should be used for that
purpose.
Note: The objective of this procedure is to consolidate all the value improving practice
requirements into one procedure. VIP requirements are also specified in other phase-
specific procedures such as SAEP-1350 for the DBSP phase. The requirements
specified herein supersede the provisions in the other procedures referenced in this
document.

2 Conflicts and Deviations

Any conflicts between this document and other applicable Mandatory Saudi
Aramco Engineering Requirements (MSAERs) shall be addressed to the
EK&RD Coordinator.

Any deviation from the requirements herein shall follow internal company
procedure SAEP-302.

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3 References

The editions of the following MSAERs which are in effect on the project’s
standards cut-off date (see SAEP-14) are applicable to this procedure. All other
references shall use the latest edition:

3.1 Saudi Aramco References

Saudi Aramco Engineering Procedures

SAEP-12 Project Execution Plan

SAEP-14 Project Proposal
SAEP-17 Capital Management System
SAEP-302 Waiver of a Mandatory Saudi Aramco Engineering
Requirement
SAEP-1350 Design Basis Scoping Paper (DBSP) Preparation &
Revision Procedure
Saudi Aramco Engineering Standards

SAES-A-030 Reliability Availability and Maintainability (RAM) Study

Execution
Saudi Aramco General Instruction

GI-0002.710 Mechanical Completion and Performance Acceptance of

Facilities

Saudi Aramco Best Practices

SABP-A-040 Guidelines for Conducting Value Engineering on Mandatory
Saudi Aramco Engineering Requirements
SABP-A-175 Process to Validate Claimed Benefits and Improvements

Saudi Aramco Guides and Manuals

Saudi Aramco Project Risk Management Guide

Value Engineering Guide
Best Practices Guide

4 Terminology

4.1 Acronyms

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AVIP Applicable Value Improving Practices

BEAM Business Engineering Alignment Meeting

CMS Capital Management System

CSD Consulting Services Department

CPAG Capital Program Assurance Group

CPED Capital Program Efficiency Division

DBSP Design Basis Scoping Paper

DD Detailed Design

DTC Design to Capacity

EK Engineering Knowledge

EK&RD Engineering Knowledge and Resources Division

EPC Engineering, Procurement, and Construction Contractor

ERA Expenditure Request Approval

ES Engineering Services

FEL Front End Loading

FPD Facilities Planning Department

ID Inspection Department

IM Interface Management

IMS Interface Management System

IPT Integrated Project Team

LLC Lessons Learned Collection

LLI Lessons Learned Implementation

OK Operations Knowledge

OP Operations

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ORP Operational Readiness Plan

OS On-stream

MSAER Mandatory Saudi Aramco Engineering Requirement

P&CSD Process and Control Systems Department

P&FDD Production and Facilities Development Department

PDRI Project Definition Rating Index

PEDD Professional Engineering Development Division

PEP Project Execution Plan

PFSU Planning for Startup

PKW Project Knowledge Workshop

PMOD Project Management Office Department

POD Project Optimization Division

PP Project Proposal

PPA Post Project Appraisal

PRIME Project Risk Management Engine

PRM Project Risk Management

PS Process Simplification

PXP Portfolio Execution Planning

SAPMT Saudi Aramco Project Management Team

SCDR Scope Change from Approved DBSP Request

SEP Startup Execution Plan

SME Subject Matter Expert

TDI Team Development Index

VA Value Assurance

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VE Value Engineering

VIP Value Improving Practices

VM Value Management
4.2 Definitions
Capital Management System (CMS): The general framework adopted by
Saudi Aramco for managing and controlling activities on Capital Projects. The
CMS covers the entire development process from business planning, through
project definition and execution to operations.

Construction Agency: The organization assigned to execute the project.

Front End Loading (FEL): A process that organizes the project life cycle into
phases, each with defined activities, deliverables and specific objectives. FEL
is applicable for all projects that apply the Capital Management System (CMS).
For more details, refer to SAEP-17.

Integrated Project Team (IPT): A team composed of appointed members from

different organizations who work in an integrated manner and have clear roles
and accountabilities toward project planning and execution.

Project Management: The Saudi Aramco Project Management administrative

area that is the default Construction Agency for types A, B, and C projects.

Project Types A, B, C, & C1: Assigned to the projects through characterization

conducted by a committee consists of FPD and PMOD based on size (CAPEX)
and complexity. For reference, see Appendix B - Saudi Aramco Projects
Portfolio Characterization.

Proponent: The Saudi Aramco organization that owns, operates, and

maintains the completed facility. The Proponent is responsible for signing the
Mechanical Completion Certificate as owner of the facility.

Saudi Aramco Project Management Team (SAPMT): The Construction

Agency team assigned to the project during project planning and execution.

Team Development Index (TDI): Measures elements that enhance team

performance which improves project definition, team alignment and
performance. The index is generated during FEL2/DBSP, FEL3/Project
Proposal and Construction completion. The TDI addresses the following
categories:

a. Project Team Development and Integration

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b. Project Maturity Processes

c. Project Complexity Attributes and Management Strategies

5. Value Improving Practices
Value Improving Practices are practices used to improve project performance,
and they are primarily used during the FEL of a project. Within Saudi Aramco,
the term Value Improving Practices encompasses Value Engineering, a group
of other value management techniques called Best Practices, Project
Knowledge Workshops, and Project Risk Management.

• Value Engineering (VE): A function-oriented multidisciplinary team

approach for optimizing project execution and eliminating unnecessary costs
without sacrificing total project performance, quality, safety, operability,
maintainability and/or reliability.

• Best Practices: Strategies, techniques, methods or procedures that have

proven to produce results of the highest value to an organization. Within
Project Management, “value” is determined by the ability to complete
projects at or below targets for cost and schedule while maintaining quality
and safety goals.

Best Practices techniques include Project Planning & Team Alignment

(formerly known as Project Execution Planning Workshop); Project
Definition Rating Index; Constructability; Scope Control & Change
Management; and Planning for Start-up. The Lessons Learned practice has
been reclassified as part of the Project Knowledge Workshop.

• Project Knowledge Management: Consists of four elements of knowledge

sharing:

o Lessons Learned Program Knowledge (Lessons Learned Collection

(LLC) and Lessons Learned Implementation (LLI)),

o Engineering Knowledge (EK) from Engineering Services departments,

o Knowledge from Post Project Appraisal (PPA), and

o Operations Knowledge (OK) from Operational departments that are

shared with projects in workshop settings.

• Project Risk Management (PRM): Seeks to anticipate and address

uncertainties and events that have a positive or negative affect on project
objectives. Project Risk Management is the process concerned with

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conducting risk management planning, identification, analysis, response,

and monitoring and control of project risks.

• Interface Management (IM): Seeks to proactively manage all

communications with and between contractors regarding the interface points
where contract packages meet to integrate the divisions of the overall facility
being constructed. IM successfully aligns stakeholders, EPC, service
companies, and commissioning parties to deliver large scale projects on
time and within budget.

• Applicable Value Improving Practices (AVIP) Plan: A project-specific

plan that indicates the required practices for the different phases of the
project or program.

The AVIP plan supersedes the general requirements shown in Appendix A -

Optimum Implementation Timing for VIPs and Summary of VIPs Criteria.

• Value Improving Practices Outcome Implementation Report: A report

that notes the implementation status of the required VIPS for the individual
project to be submitted to PMOD for review and to Value Assurance (VA)
during Gate Reviews. As an attachment, the status report also includes the
VIPs reports issued by the facilitators for individual practices along with the
Value Assurance Check List for each of the required VIPs.

• Value Improving Practices Automated System: A web-based automated

tool that enables PMOD/POD to propose, schedule, track, and evaluate the
implementation of Value Improving Practices on capital projects.

6 Requirements/ Instructions

6.1 Plan Implementation

Using the automated Value Improving Practices Automated System at the

beginning of each calendar year or at the initiation of each project, PMOD/POD
assists project teams to identify the Value Improving Practices that provide the
most benefit for the individual projects.

In general, the proposed practices follow Appendix A - Optimum

Implementation Timing for VIPs and Summary of VIPs Criteria as a guide. The
Applicable VIPs Plan is then sent to the Project Leader/Manager of the
IPT/SAPMT for review and concurrence. The concurred practices are then
reflected in the Applicable Value Improving Practices Plan, Value Improving
Practices Automated System, and the Project Execution Plan.
6.2 Deploy VIPs

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The approved AVIP Plan becomes the baseline for the AVIP plan to be
implemented for each project. Since best practices have the greatest impact on
a project during the FEL phases, it is recommended that their use be planned
early and repeated, as applicable. The Project Leader/Manager is responsible
for the implementation of the recommended practices for their projects. For
more details on responsibility, please refer to Section 13 of this document.

In case there is a need for revising or updating the approved AVIP Plan, the IPT
leader shall secure PMOD/POD’s approval for the revised AVIP plan and a
copy of the revised plan shall be submitted to PMOD/Value Assurance for
information and reference. The revised plan shall then be reflected in the Value
Improving Practices Automated System and the Project Execution Plan.

6.3 Performance and Control

During front-end-loading phases, Value Improving Practice sessions shall only

be facilitated by PMOD or PMOD-approved facilitators. The list of approved
facilitators can be obtained from PMOD/POD. IPT Leader shall approach
PMOD for facilitation support prior to contacting 3rd party facilitators.
PMOD/POD will decide whether SA VIP SME or 3rd party consultant is to
facilitate the VIP workshop.

With the help of the facilitator, individual VIP deliverables shall be submitted to
PMOD for review and for value assurance, respectively. During the execution
phases (Detailed Design and Construction) all VIP sessions and deliverables
shall be led/conducted by approved value practice consultants or any qualified
SME from the execution-phase contractor or subcontractor who has been
approved by PMOD.

The “Optimum Implementation Timing” and “Summary Criteria” of the

recommended VIPs are provided in Appendix A - Optimum Implementation
Timing for VIPs and Summary of VIPs Criteria. For each individual project, the
IPT Leader and the IPT in conjunction with PMOD/POD will determine the
specific list of AVIPs for their project. In the event the project criteria/value
changes during its lifecycle, the VIP requirements shall be re-evaluated as
needed in consultation with PMOD.

Upon the completion of all VIP workshops, participants shall provide feedback
on the VIP workshop and the facilitator’s performance.

The IPT/Approved Consultants are responsible for submitting the VIP

Workshop Report (Draft & Final) and the VIPIT Data Worksheet to the relevant
PMOD SME for review. The VIP deliverables/ reports shall also be submitted to
the relevant PMOD SME and copied to VIPREPORTS@aramco.com. The IPT
shall contact VIPITSYSTEM@aramco.com for any clarification, additional

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information, and for the latest guidelines and updates on the VIP deliverables.
The IPT Leader shall approve the final VIP deliverables (including the VIP
Reports) upon completion of the draft VIP deliverables review by PMOD.

Post VIP workshops, the IPT is responsible to implement all accepted action
items/recommendations and shall VIPs action list (VIPIT Worksheet) to
PMOD/POD to be logged and tracked utilizing a tracking system identified by
PMOD. All action items logged in the system shall be implementd and their
status updated in the system. See Appendix C for the VIPIT Worksheet and
additional information.

IPT shall submit the draft VIPs Outcome Implementation Report to PMOD for
review at least one month prior to gate submittal. IPT lead shall demonstrate to
PMOD that all actions have been closed and status updated prior to each gate.
PMOD SME will follow up with IPT Lead or Project VIP Coordinator post
workshop to ensure that the process is well understood and that all action items
status are updated appropriately prior to VA Gate review. The PMOD SME will
identify any status gap and share the findings with IPT Lead prior to the
submittal of VIPs Outcome Implementation Report for VA Gate Review.

The final VIPs Outcome Implementation Report along with its attachment for the
different practices shall be submitted to PMOD for Value Assurance during the
Gate Reviews.

6.4 Process Monitoring

The VIPs reports and the implementation status reports submitted for each gate
will be used to calculate KPIs established to measure the performance of VIPs
implementations. Each project is required to implement the applicable VIPs for
the project and all recommendations resulting from the AVIPs workshops.
PMOD will monitor the implementation and trends of the KPIs and will use this
information to enhance VIPs process and report performance including
escalation of issues to Project Execution Agencies.

6.5 Lessons from VIPs

With the assistance of VIPs facilitators, IPT Leaders are required to document
and submit lessons learned from each session. This will allow PMOD to
improve future facilitation services and to use the captured lessons as input for
future sessions for each practice. The documented lessons learned will also be
used to create synergy between practices where the scope and identified
issues overlap.

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7 Value Engineering

Value Engineering (VE) is a function–oriented, multidisciplinary team approach

for optimizing project scope, investment and eliminating unnecessary costs
without sacrificing total project intended business value, performance, quality,
safety, operability, maintainability sustainability and/or reliability. The practice
aims to systematically differentiate “wants” from “needs” and removes the
“wants.” It tests for non-income-producing investments, including:

• Redundancy

• Over-design

• Manufacturing add-ons

• Customized design vs. supplier standards

• Environmental impact

The Value Engineering exercise typically results in savings of approximately 5%

of life-cycle cost. VE leverages the growing accumulation of more detailed
project knowledge to test the value of earlier, more generalized scope
assumptions. It also tests the added value of different stakeholder requirements
that have influenced the evolution of the scope. The Value Engineering
methodology is outlined in the VE Guide. The primary purpose of the VE Guide
is to provide project teams and third-party consultants with an information guide
that can be used to plan, organize and execute Value Engineering studies on
capital projects.

IPT Leader shall approach PMOD for facilitation support prior to contacting 3rd
party facilitators. PMOD/POD will decide whether SA VE SME or 3rd party
consultant is to facilitate the VE study. VE shall only be facilitated by PMOD VE
SMEs or a Certified Value Specialist who has been approved by PMOD/POD.
The list of approved consultants can be obtained from PMOD/POD.

Requests for VE study guidance and information on consultants and local

engineering contractors approved to facilitate VE sessions should be directed to
PMOD/POD.

7.1 VE Study Criteria/ Implementation Criteria

For C1-type projects, VE should be conducted once at 30% FEL3/PP stage. For
A, B, & C-type projects, VE will be conducted both at 60% FEL2/DBSP and 30%
FEL3/PP. Type A & B projects shall conduct at least two VE sessions unless
otherwise stated in the Approved VIP Plan.

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7.2 DBSP Phase

During the FEL2/DBSP phase, Facilities Planning Department initiates a Value

Engineering study of the project scope at 60% of FEL2/DBSP. The IPT Leader
is to start planning for the session at least one month prior to the 60% of FEL
2B DBSP milestone to ensure the availability of key stakeholders and approved
facilitator.

7.3 Project Proposal Phase

During the Project Proposal phase, the Construction Agency initiates the VE
study which should be completed during the early phase of the Project Proposal
but not later than the 30% completion milestone date. The Construction
Agency is to start planning for the session at least one month prior to the 30%
of FEL3/PP milestone to ensure the availability of key stakeholders and
approved facilitator.

For scheduling purposes, the VE studies shall be coordinated with the Project
Management Office Department (PMOD/POD). The requirements for
conducting VE studies shall be identified in the Project Proposal contractor’s
scope of work and the Value Improving Practices Implementation Plan and
Project Execution Plan.

7.4 Additional VE Requirements

VE shall be conducted with special emphasis on the following areas:

• Plot Plan Analysis for expansion and grass root process plant projects to
ensure that facilities are designed in the most efficient and cost-effective
manner.

• Project Technical Package to be included in the VE workshop.

• VE for brownfield projects (expansions)

• Process Simplification (PS) is imbedded within the VE session and it is to be

addressed during the FEL2/DBSP-phase VE.

PS is a rigorous, structured, and formally facilitated process to search for

opportunities to eliminate or combine chemical or physical process steps while
satisfying needed functionality at the lowest investment cost, and often
operating cost as well.

• Design-to-Capacity (DTC) is to be addressed both during the FEL2/DBSP

and FEL3/PP VE.

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DTC is a structured evaluation to determine the true required maximum

capacity of each major piece of equipment relative to the desired overall facility
capacity with the objective of minimizing uneconomic excess capacity. Design
to Capacity optimizes the use of capital while considering plant availability and
expandability scenario use.

7.5 VE Proposal Implementation and Reporting Requirements

The effectiveness of a VE study depends on the successful implementation of

accepted proposals and the prompt resolution of pending proposals. During
development of the Design Basis Scoping Paper, the Facilities Planning
Department modifies the initial project scope to reflect the Value Engineering
study recommendations which FPD agrees would strengthen the business case
and project value.

During the FEL2/DBSP phase, the VE proposals that are accepted by FPD are
to be reviewed by the proponent organization, IPT Process & Control Systems
Department (P&CSD), and Consulting Services Department (CSD) if related to
standards’ requirements, before being incorporated into the FEL2/DBSP scope
of work. The status and resolution of all accepted and justification for the not
accepted VE proposals shall be documented in the Value Engineering section
of the FEL2/DBSP and the VIP Outcome Report for Value Engineering.
Moreover, a resolution should be reached in regards to the “Accepted for
Further Study” concepts. At the end of the FEL2/DBSP, all items should be
either accepted or not accepted.

During the FEL3/Project Proposal phase, the VE proposals that are accepted
by the proponent organization and the Construction Agency are to be reviewed
by FPD, Process & Control Systems Department (P&CSD), and Consulting
Services Department (CSD) if related to standards’ requirements, before being
incorporated into the Project Proposal scope of work. Any scope change
resulting from VE proposals shall be documented through SCDRs as per
SAEP-14. The status and resolution of all accepted and justification for the not
accepted VE proposals shall be documented in the Value Engineering section
of the Project Proposal and the VIPs Outcome Report for Value Engineering.
Moreover, a resolution should be reached in regards to the “Accepted for
Further Study” concepts. At the end of the Project Proposal, all items should be
either accepted or not accepted. All phases of the VE Study (Information,
Functional Analysis, Creativity, Evaluation, and Presentation) are mandatory
and shall be completed.

In regards to the workshop duration, refer to the VE Guide for the

recommended duration of workshops which are based on the Saudi Aramco
project complexity and dollar value.

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7.6 VE Deliverables

With the assistance of the VE SME, the IPT shall submit the following
deliverables after each VE study event as outlined in Appendix A - Optimum
Implementation Timing for VIPs and Summary of VIPs Criteria.

Value Engineering Study Report (Final)

The final report shall include the following:

• List of attendees

• Master VE Idea Log which contains at minimum (for each VE idea/proposal):

1) Technical Description

2) Base Case Description

3) Technical Designer’s Comments

4) Cost Avoidance for Accepted VE Proposals – with backup as per SAEP-

25

5) Acceptance status (Accepted “A”, Not Accepted “NA” or Accepted for

Further Study “AFS”) for all VE proposals must be stated. In the Final
Report technical justification must be provided for all rejected proposal
including AFS. Prior to conclusion of the Phase and VA Review, the final
status for the Accepted for Further Study (AFS) proposal shall have been
resolved and shall be converted to either “A” or “NA” and documented in
the VE Section of the AVIPs Outcome Report. For VE proposals with
high potential (greater than $0.5MM) of cost avoidance values; technical
justification for the rejected proposals shall be supported in writing by
senior Engineering Services SME for that specific discipline.

A summary VE proposal log shall be generated from the Master VE idea

log.

• Implementation meeting information which includes the names of decision

makers who attended the implementation meeting. IPT Leader is to sign the
Implementation log.

• Design-to-Capacity Report (when required) can be submitted as a

standalone or as a section of the VE report. The report shall include the
following:

1) List of attendees

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2) A list of all major equipment including the design capacity as specified by

the project team along with the margin of design utilized. Justification for
variance will be required for design capacities that exceeds the required
design margins.

The content of these deliverables should be relevant and address the objectives
of the respective gates. Gate objectives are outlined in SAEP-17.

A copy of the final VE report shall be distributed to PMOD/POD no later than

four weeks from the completion of the VE session in the FEL2/DBSP, and the
FEL3/PP phase.

Refer to the latest version of POD VE Guide for further details about the
workshop.
8 Best Practices
The use of industry best practices can significantly improve project performance
in terms of cost, schedule, and operability. However, the effectiveness of these
techniques depends on several factors, including the nature of the project, the
project phase at which the practices are applied, and the expertise of the
individuals responsible for implementing them. The elements of the best
practices are outlined in the Best Practices Guide. This includes the following
practices:

8.1 Project Planning and Team Alignment (PP&TA)

Project Planning and Team Alignment (formerly Project Execution Planning

Workshop) is a facilitated workshop. The overall objective of this practice is to
help improve business and engineering alignment, Project Execution Plan
(PEP), Stakeholder’s Management Plan and generate a Team Development
Index (TDI) for the FEL2 and FEL3 phases. The intent of the workshop is to
promote ownership, commitment, team building, and alignment on various
execution strategies to minimize any potential conflicts.

Business and Engineering Alignment Meeting (BEAM) is administered under

PP&TA but it is a stand-alone workshop with its own agenda and outputs.
Reference section 8.1.1. below for details. However, the Scope Change
Definition Request (SCDR) is now imbedded within PP&TA to ensure discipline
in scope changes during execution. It introduces the SCDR requirements to the
project team according to the CMS and SAEP-14.

Under this practice, C1 type projects are conducted once on or at 10% Project
Proposal. For A, B, and C projects, PP&TA workshops are conducted at 10%
FEL2/DBSP phase and again at or before 10% FEL3/PP phase. If the same
design team is performing the FEL2/DBSP and FEL3/PP, there is no need to

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conduct a formal PP&TA workshop at FEL 3/PP; however, Team Development

Index (TDI) is mandatory for FEL3 Phase and will be generated by IPT Lead
with support from VPU SME.

On a typical Budget Item (BI), key stakeholders are the Proponent, FPD, IPT,
Loss Prevention, Inspection Department, other Project Execution Plan
approving organizations and contractor discipline leads. IPT team leads, and
particularly Proponent engagement, are a must to successfully implement this
practice. The workshops will be coordinated by the IPT Leader and will be
facilitated by PMOD or a PMOD-approved consultant.

The workshop shall include the following contents:

• Awareness of applicable VIPs, timeline, and deliverables.

• Team survey to develop Team Development Index (TDI). TDI must be

conducted at FEL2 and FEL3 to identify planning and team building gaps for
actions.

• Alignment on project goals, objectives and drivers. Identify and capture

Project Execution Plan (PEP) issues, alignment concerns, strategies, risks
and opportunities.

• Review draft Stakeholder Management Plan (SMP), help develop

Stakeholder’s Management Register and identify gaps for action

• Review and align on draft Project Execution Plan (PEP), consider alternate
plans and identify critical issues/gaps to help revise document as needed.

• Overview of Scope Change Definition Request (SCDR) per SAEP-14.

For an effective session, the IPT lead is to share the below documents with the
facilitator.

• Stakeholder Management Plan (Draft)

• Project Execution Plan (Abbreviated or draft of Full)

• DBSP and any addendums

• Existing Project Overview presentations as available

• Kick-off Meeting minutes (if any)

Deliverables: At minimum, the following workshop deliverables must be

submitted with the report:
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• List of planning & alignment issues/concerns

• Team Development Index (TDI)

• Stakeholder Management Register

• Summary of workshop recommendations and path-forward

• Attendance Sheet

Reference latest VPU, PP&TA Workshop Guide for more details on conducting
a PP&TA Workshop and its methodology. Reference Appendix A and contact
VPU Supervisor and SME for support.

8.1.1 Business and Engineering Alignment Meeting (BEAM)

BEAM brings together business and project teams at end of Business

case to align on the business needs and project parameters. It is a
component of PP&TA and this workshop is recommended for A & B type
Projects only. For C and C1 type Projects, BEAM can be incorporated
as part of the Project Kick-off Meeting. For an effective workshop, IPT
shall provide the following documentation and invite listed attendees.

• Typical Agenda: Align on Business Case, Feasibility Study, Economic

Analysis, PXP Lens analysis, Strategies, Schedule, Deliverables,
Functionality trade-offs, Boundary Conditions, Classes of Facility
Quality (CFQ), Technology and Alternative Selection

• Documentation: Scope information, Business Case/Feasibility Study

Report, Economic Analysis, PXP Lens Analysis, PXP opportunities
mapped against the project, FEL1 Risk Register and Facility and
Business Master Plan

• Attendees: Business Leads, IPT Leads (PMT, FPD, Proponent),

P&FDD, CSD, P&CSD, Operations & Maintenance Rep., Engineering
SMEs, HSE, LPD, EPD, CPED/CPAG and R&D if applicable. Owner
representation is must.

The following are the minimum BEAM outputs:

• Results of “Business and Project Objectives Questionnaire”

• Understanding and acknowledgement of PXP opportunities

• BEAM Alignment Survey Graph and Score

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• List of BEAM gaps for action

• List of business and engineering gaps/misalignments such as in

established process or design basis

BEAM outputs are binding to project and shall guide decision making in
planning Phase. All open issues identified during the workshop must be
actioned and closed in FEL2 Phase. For the BEAM workshop, please
contact POD/VPU Supervisor for latest information.

8.2 Constructability

Constructability is the integration of construction expertise throughout the

design process to facilitate the reduction of construction cycle time and cost
with construction safety embedded. It comprises an analysis of the design,
usually performed by experienced construction engineers, to reduce costs or
save time. Constructability is usually a program in which competent
construction professionals are involved as part of the project design team,
working with the engineers from conceptual stage of the project and continuing
through completion of design. Effective and timely integration of construction
knowledge into the conceptual planning, design, construction and field
operations of a project has proven substantial benefits. Constructability efforts
require a proactive approach; therefore, the FEL2/DBSP, Project Proposal, and
Detailed Design phases of a project are where constructability efforts are most
and yield the greatest results. Attendance of construction professionals or
SMEs with construction experience is required for the DBSP and PP
constructability workshops. Also, the attendance of the Construction SME is
required in case of major scope change.

During constructability workshops, the project team shall evaluate the outcome
of the Modular Design Assessment (MDA) Study. The buildability, logistics, and
ramifications of modularization on constructability of the project shall be
evaluated thoroughly. All issues noted during this assessment related to
modularization design and its impact on construction shall be reflected in the
Constructability Log under modularization sub-heading with specific
recommendations and actions for resolution.

During the study, the IPT shall review all aspects of constructability that could
be of a concern for the project including but not limited to spacing requirements,
proposed scope changes during Detailed Design, accessibility of the project or
equipment during construction and beyond. Potential issues should be flagged
including deviations of standard spacing requirements.

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Also, during the constructability session, the project team shall assess the
impact and ramification of any new construction and design technology that the
project may be considering for utilization.

Prior to the Constructability sessions, the IPT shall conduct initial Project
Execution Technology (PET) study to illustrate the assessment of all potential
PET items listed in PXP & Technical Selection Report (TSR) for deployment in
all project phases as applicable. The assessment result shall be compiled in a
PET document including the safety, environmental, schedule and financial
rewards. IPT shall update the PET domain with the findings of the workshops”.
IPT shall present the PET study’s findings and recommendations to the
constructability’s team, and together they shall assess the impact and
ramification of PET’s proposed technologies. The PET study shall be updated
by IPT to reflect the assessment results.

Constructability Deliverables

With the assistance of the Constructability SME, the IPT should submit a
constructability report after each Constructability study event as outlined below.

The Constructability Report shall include the following:

• List of attendees

• Constructability Review Checklist (general and specific) items

• Constructability items impact on cost and schedule identified.

• Identified due date, phase and champion of each item.

• Constructability log which reflects the status update of previous phase’s

Constructability items and actions undertaken. It is the responsibility of the
IPT Leader or his designee to keep the Constructability Log up to date and
to submit an updated log during the submittal of the VIPs Outcome
Implementation Report to PMOD for review at least one month prior to gate
submittal. At the time of this submittal, Constructability Log should have the
current findings, resolution & implementation action to close the items
documented. Also, justification should be documented if accepted
constructability items were not fully implemented. Completion date and
Construction Agency approval on final closure shall be documented as well.

The content of these deliverables should be relevant and address the objectives
of the respective gates. Gate objectives are outlined in SAEP-17.

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Refer to the latest version of POD Constructability Guide for further details
about the workshop.

8.3 Planning for Startup (PFSU)

Startup is defined as the transitional phase between facility construction

completion and on-stream, including all activities that bridge these two
milestones (i.e., Mechanical Completion, Commissioning through Performance
Acceptance). Overall project success is strongly related to startup success,
which depends heavily on the degree and thoroughness of early startup
planning. Saudi Aramco GI-0002.710, Mechanical Completion and
Performance Acceptance of Facilities provides the framework for startup and
turnover planning.

The startup team, led by the Proponent, is responsible for getting the plant
safely and efficiently commissioned and started. Successful commercial
operations require successful startup and successful startup requires effective
planning for startup.
The key to a successful startup is to have an Operational Readiness and
Startup Plan that defines the roles and responsibilities of the startup team
explicitly and clearly identify the manpower need with a high level of accuracy.
The preparation of the Startup Plan, which includes a Responsibility
Assignment Matrix “Responsibility, Accountability, Consult, Inform (RACI)”, is
normally initiated late in the Design Basis Scoping Paper phase and is
elaborated during the early stages of Project Proposal and further refined
throughout the subsequent project phases.

The startup plan describes in detail the sequence of startup, integration with
shutdowns, turnover sequence, plans for commissioning procedures, training
program, list of issues and concerns that could be potential risks for startup,
plans for maintenance procedures, raw materials and supplies needed for
startup, plans for the preparation of operating manuals, documentation,
required spare parts and startup team structure including the responsibilities
and accountabilities for the Proponent, constructor, vendor representative,
Project Engineer, operations, and maintenance personnel.

The development of the Startup Plan (as an integral part of the Operational
Readiness Plan) is the responsibility of the Operations representative with input
from the Project Leader /Manager, design team, Safety and Industrial Security
(S&IS), Inspection, etc. It also relies upon information from the Pre-
commissioning & Mechanical Completion plan.
Note: The Operational Readiness Plan (ORP) is a document that defines how the project will
transition into an operating facility and will describe what “operational-type” steps must
be taken along the project planning and execution path to have a flawless startup and
initial operations. The ORP also highlights and describes activities and resources

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aiming to ensure the optimization of Operations and Maintenance activities over the
facility lifetime (starting after handover).

The Project Leader/Manager is to provide oversight to ensure that startup

planning is performed as an activity that is performed and tracked in (for
example) Project Execution Plan, and project schedule.

Implementation Criteria

Planning for Startup is a series of activities to be performed at different times

during project development cycle. As outlined in Appendix A - Optimum
Implementation Timing for VIPs and Summary of VIPs Criteria, this effort is
initiated at 30% of Project Proposal and again at 20% of Detailed Design. For
brownfield projects, preliminary start-up planning shall be conducted at DBSP
phase outside of VIP Workshop to capture shutdown requirements, temporary
arrangements and transition of project scope elements in phases etc. that are
necessary to mitigate prolong disruptions to operations/production in
consultation with OSPAS. The output of this plan to be shared with PFSU
facilitator during FEL3 VIP Workshop. The PFSU tools are used by all project
stakeholders, PMT, proponent, contractors, etc., to help facilitate a successful
facility start-up and stable long-term operation.

The Planning for Startup tools can be utilized either web-based or offline. The
model recommends that about 50% of the startup planning effort should be
completed by the end of the Project Proposal phase. By the end of Detailed
Design the startup planning effort should be 80% complete.

The startup plan addresses the startup objective, roles and responsibilities of
key persons and organizations, the startup philosophy, startup scope and major
systems, startup risk, and any procurement related to startup as well as the
timing of startup planning and execution activities.

The PFSU workshop, at a minimum, must initiate a preliminary Start-Up

Execution Plan (SEP) with input from Proponent, IPT leads, Saudi Aramco
SMEs and contract leads. During the workshop, the PFSU team needs to
identify and capture a list of start-up issues for action and establish the PFSU
“Saudi Aramco SuPERTOOL” score as an index to measure progress and
compliance of PFSU activities. Preliminary SEP, a list of PFSU open issues
and draft “Saudi Aramco SuPERTOOL” outputs are all minimum deliverables of
PFSU workshop. In addition, the IPT lead needs to share updated “Saudi
Aramco SuPERTOOL” score with POD prior to Value Assurance Review at
Gate 3.

PFSU Deliverables

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With the assistance of the PFSU facilitator, the IPT shall submit a Planning for
Startup report after each PFSU workshop event as outlined.

The PFSU report shall include the following:

• List of attendees for all gates

• Draft Startup Execution Plan (SEP)

• List of open PFSU and ORP issues for action

• ‘SuPERTOOL” activity updates and score

The content of these deliverables should be relevant and address the objectives
of the respective gates. Gate objectives are outlined in SAEP-17.

For workshop methodology, refer to the latest POD PFSU Guide.

8.4 Project Definition Rating Index (PDRI)

PDRI is a powerful and simple tool that helps the project team measure project
scope definition for completeness. This practice/workshop shall be conducted
twice (i.e. right before Gate 2 and Gate 3 Value Assurance reviews). The
optimum time for conducting these workshops is after receiving and resolving
all review comments raised during the 90% FEL2/DBSP, and 90% of Project
Proposal. PDRI workshops involve the IPT, Proponent, contractor, and other
parties as needed to measure level of project scope definition and Project
Proposal completeness and clarity. PDRI consists of approximately 70
elements that identify and very precisely describe each critical element in a
preliminary engineering scope definition package.

PDRI Deliverable

For all projects, PDRI reports shall be developed by the SME using the latest
PDRI worksheet (relevant to the project scope, i.e. industrial, infrastructure or
buildings) that is approved by PMOD/POD. Refer to the PDRI Guide for further
details or contact the PMOD/POD/VPU Supervisor for further information. For
industrial projects, the PDRI report shall show assessment scores of both the
maturity and accuracy of FEED deliverables.

With the assistance of the PDRI SME, the IPT shall submit the PDRI report
after each PDRI session as outlined in Appendix A - Optimum Implementation
Timing for VIPs and Summary of VIPs Criteria.

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Using the PDRI tool and the outcome of the two sessions (90% FEL2/DBSP
and 90% FEL3/PP), the SME will generate the Front-End Loading Indexes for
FEL2 and FEL3.

The PDRI report shall indicate the low defined elements that negatively affect
the project scope definition. These items shall be sent to IPT for action and
resolution with due dates and assigned team members.

A copy of the final PDRI report shall be distributed to PMOD/POD no later than
four weeks from the completion of the PDRI session in the FEL2/DBSP, and the
FEL3/PP phase.

Refer to the latest version of POD PDRI Guide for further details about the
workshop.

8.5 Scope Control and Change Management (SC&CM)

Scope Control (SC) is a preventive, proactive process that starts with a detailed
project scope and ensures discipline in scope changes during execution.
Change Management (CM) involves establishing and communicating to all
project stakeholders a system for recognizing, evaluating, and implementing
changes during all phases of the project. SC&CM is a facilitated session and
shall be conducted only at 0-10% of Detailed Design.

The SC+CM workshop conducted during the DD reminds the project team of
the effectiveness of and discipline required for Scope Control and Change
Management during the Execution phase. This workshop will be facilitated by
the Design Contractor or PMOD-approved consultant.

9 Project Knowledge Workshops

Project Knowledge Workshops consist of four elements of knowledge sharing,

namely: Lessons Learned Program Knowledge (Lessons Learned Collection
(LLC) and Lessons Learned Implementation (LLI)), Engineering Knowledge
(EK) from Engineering Services Departments, Knowledge from Post Project
Appraisal (PPA), and Operations Knowledge (OK) from Operations
Departments that are shared with projects in workshop settings. The purpose
of this knowledge sharing is to maximize knowledge exchange and prevent
recurrence of issues encountered on previous, similar projects.

9.1 Lessons Learned Program Knowledge

Lessons Learned is defined as knowledge gained from experience, successful

or otherwise, to improve future performance. The objective of Project
Management’s Lessons Learned program is to facilitate the capture, analysis,
and implementation of lessons learned to improve project performance.
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The Project Leader shall be responsible to carry out the below listed workshops
as part of the Lessons Learned requirements in this procedure.

9.1.1 Lessons Learned Implementation (LLI)

Lessons Learned Implementation is a structured and systematic

approach to the application of lessons learned from previous projects. It
entails a systematic search of Project Management’s Lessons Learned
Knowledge Base and the Pitfall Prevention Tool website and other
reliable knowledge sources that include information from presentations
by Engineering Services Departments, Post Project Appraisal findings
and input from Operations Department Collection Workshops. This
collective effort is to identify lessons applicable to the specific project.
This is followed by the development of mitigation strategies and action
plans, and monitoring their implementation with a view to minimizing
repeat problems and capitalizing on other project’s successes.

Implementation Criteria

As outlined in Appendix A - Optimum Implementation Timing for VIPs

and Summary of VIPs Criteria, the IPT shall initiate and hold formal
facilitated LLI workshops at the beginning (0−10%) of project phases.

During the LLI workshops, projects will select applicable lessons/pitfalls

from the LL Knowledge Base/Pitfall Prevention Tool respectively,
Operations knowledge, and from Engineering Services collective
presentations for the current phase and all upcoming project phases
including PPA findings, where action plans can be developed.
Participants in these workshops should be from project stakeholders,
including but not limited to, PMT, Facilities Planning Department,
Proponents, Inspection Department, Loss Prevention Department,
Engineering Services Departments that support the project and
contractor’s key representatives.

LLI Deliverables

With the help of an LLI facilitator, the IPT shall submit the LLI Report
after each LLI Workshop as outlined in Appendix A - Optimum
Implementation Timing for VIPs and Summary of VIPs Criteria.

The LLI report shall include:

1. The title for each applicable lesson from all sources including lessons
from LL Knowledgebase, pitfalls from Pitfall Prevention Tool, ES

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Presentations, Operations Knowledge, Post Project Appraisal

findings, or ad-hoc lessons from the attendees experience.

2. Impact and urgency for each applicable lesson or pitfall

3. Person responsible for implementation of the lesson or pitfall

4. Action plans to be taken to address the identified lesson (this is

written by the person responsible)

5. Action plan completion dates

6. Status update for the actions

The content of these deliverables should be relevant and address the

objectives of the respective gates. Gate objectives are outlined in SAEP-
17.

9.1.2 Lesson Learned Collection (LLC)

Lessons Learned Collection is a structured and systematic approach for

individuals from the IPT to collectively document their unique
experiences and insights from their involvement in each phase of project
development cycle.

Implementation Criteria

As outlined in Appendix A - Optimum Implementation Timing for VIPs

and Summary of VIPs Criteria, Saudi Aramco projects shall hold formal
facilitated LLC workshops at 90%−100% completion of each project
phase. The LLC session conducted at the end of Construction shall
include the generation of the TDI score from the TDI survey for the
project. Participants in these workshops should be individuals from the
IPT who were involved in the planning and execution of the project,
including but not limited to Proponents, PMT, FPD, Inspection
Department, Loss Prevention Department, and contractor’s and vendor’s
key representatives. It is also strongly recommended that project team
members regularly submit lessons to Project Management’s Lessons
Learned Knowledge Base at any time during the project lifecycle.

LLC Deliverables

With the help of an LLC facilitator, the IPT shall submit the LLC report
within two weeks of each LLC workshop as outlined in Appendix A -
Optimum Implementation Timing for VIPs and Summary of VIPs Criteria.

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The LLC report shall include:

1. The title for each lesson

2. Background

3. Root Causes/Benefits

4. Recommendations

The content of these deliverables should be relevant and address the

objectives of the respective gates. Gate objectives are outlined in SAEP-
17.

9.2 Engineering Knowledge

Engineering Knowledge for projects are collaborative information and

presentations delivered by experts from Engineering Services departments
(CSD, P&CSD, ID, FPD, etc.) to Integrated Project Teams during the early
stages of FEL3/PP. The purpose of this knowledge sharing event is to
maximize knowledge exchange and prevent recurrence of issues encountered
on similar projects in the past. This event is considered to be integral part of
Lessons Learned Program (LLI/LLC) as applicable.

Implementation Criteria

At least three weeks prior to FEL2/DBSP or FEL3/PP LLI workshop events, the
IPT Leader shall invite appropriate Engineering Services departments to allow
them to prepare the material to be delivered during the LLI workshop. The
invitation should include project type, phase, scope and any relevant
documents that may help respective ES departments to prepare for the
workshop.

ES departments shall deliver engineering knowledge or lessons that are

relevant for the project scope that should be addressed during the LLI
workshop.

For Type A projects, the responsible ES department shall identify and present
critical engineering topics from various functions and process areas (e.g., CSD:
corrosion, structural/piping vibration, burn pits, electrical, heat exchangers;
P&CSD: flaring, process automation, MEG issues, WGP foaming) per a mutual
agreement with the IPT that includes the following criteria:

• New technologies

• Lessons learned

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• Innovative solutions

9.3 Post Project Appraisal Knowledge

The knowledge from Post Project Appraisal (PPA) is customized information

created from PPA reports of similar projects. The purpose of this knowledge
sharing event is to maximize knowledge exchange and prevent recurrence of
issues encountered during the planning and execution of similar projects that
were completed before. This event is considered to be part of Lesson Learned
Program as applicable.

Implementation Criteria

Prior to FEL2/DBSP start, FPD shall review the PPA reports of previous
projects with similar scope and shall identify the lessons that could be
implemented on the current project. All potential lessons from PPA for
implementation shall be developed using the standard Project Management
LLC format and made available for implementation during the FEL2/DBSP LLI.

9.4 Operations Knowledge

Operations Knowledge for projects are collaborative information and

presentations delivered by relevant Operations Departments of the project to
Integrated Project Teams at the early stages of project development. The
purpose of this knowledge sharing event is to maximize knowledge exchange
and prevent recurrence of issues encountered during operations of similar
projects. This event is considered part of Lesson Learned Program (LLI/LLC)
as applicable.

Implementation Criteria

At least three weeks prior to FEL2/DBSP LLI workshop events, the IPT Leader
shall invite relevant Operations Department(s) to allow them to prepare the
material to be delivered during the LLI workshop. The invitation should include
project type, phase, scope and any relevant documents that may help
department(s) to prepare for the workshop.

The OPs department shall deliver OPs knowledge or lessons that are relevant
to the project scope that should be addressed during the LLI workshop.

Six months after the project OS date, responsible Operations Department shall
coordinate with PMOD to conduct Post Project LLC Workshop.

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10 Risk Management

Project Risk Management (PRM) is based on a structured process that

addresses uncertainties and supports IPT decision-making. It is conducted
continuously over the project life. PRM is used to proactively minimize
uncertainty in achieving project objectives and to maximize project efficiency.
The process is embedded within the stage-gate approval process prior to
Expenditure Request Approval (ERA) and also within standard project practices
after ERA. The process is defined by the combination of facilitated PRM Events
(workshops) and a continuous process of monitoring and control.

The recommended optimum timing for the PRM Events is outlined in Appendix
A. It should be noted that the optimum timing is not a fixed date but a timeframe
that spans several weeks.

A structured PRM process is used which includes the following steps:

1. Plan

2. Identify

3. Qualify

4. Quantify

5. Respond

6. Monitor and Control

The PRM Events are facilitated by PMOD risk management SMEs or PMOD-
approved consultants

PRM uses a Risk Register as the core of its process, which provides the
justification for, and description of all activities required to manage the risks
identified. Implementation of risk responses and risk monitoring shall be done
following PRM Events.

The PRM process facilitates the efficient use of resources and the
determination of contingency reserves. The process is described in detail in the
Saudi Aramco Project Risk Management Guide.

10.1 PRM Implementation

The number of activities within the PRM process depends on the size and
complexity of the capital project as outlined in Appendices A and B.

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The PRM Plan shall be drafted by the Risk Manager in collaboration with the
IPT, and then reviewed and finalized together with the facilitator prior to each
PRM Event. The scope of the PRM Event will then be jointly decided between
the Risk Manager and facilitator based on a review of the PRM Plan. PRM
Events shall be attended by senior IPT members representing key stakeholders
as outlined in Appendix A.

The table below outlines the different PRM requirements for projects of different
types.

Project Type Required PRM Type

A&B Enhanced

C & C1 Standard

All projects must adhere to Standard PRM requirements, based on completion

of PRM Events (Appendix A) to develop Risk Registers including:

• Conduct a comprehensive identification and proper assessment of project

risks;

• Develop comprehensive risk responses, including implementation timelines,

with risk and action owners.

Type A and B projects however, also require additional activities to be

undertaken as follows:

• Conduct risk identification for project options in FEL2/Study. (Appendix A)

• Conduct schedule risk analysis in accordance with SAEP-331 Project

Schedule Requirements.

• Adhere to the ‘Capital Management System – Enterprise Risk Management

Requirements’ for Management Committee presentations, as outlined in the
‘Guidance and Policies for MC Presentations’ of the Portfolio and Decision
Support Department (PDSD). PMOD and the Enterprise Risk Management
(ERM) Group of PDSD shall review all Type A & B project risk reporting prior
to submittal to the Management Committee.

No PRM activities are required for projects with capital budgets below $10MM.

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Specific deliverables of the PRM Events for the four project types are fully
described in the Saudi Aramco PRM Guide.

Lessons Learned will be captured from the PRM Engine (PRIME) to benefit
future projects. The Risk Register shall be handed-over to Operations upon
construction completion. Recommended PRM process improvements will also
be captured by PMOD as part of the Lessons Learned process.

Program risk management is required and program Risk Events shall be

undertaken facilitated by a PMOD risk management SME or a PMOD-approved
consultant. Risks related to interdependency among projects, shall feature in
the program Risk Register. Furthermore, major constituent project risks which
can significantly affect the entire program shall also be represented individually
or in aggregate within the program Risk Register.

10.2 PRM Coordination

The IPT Lead is ultimately responsible for the implementation of the project risk
management. This includes assigning a Risk Manager to coordinate the
drafting of the PRM Plan and submission of relevant project documents for
PMOD’s review prior to PRM Events. The Risk Manager is also responsible for
scheduling PRM Events and IPT risk review meetings, inviting all key
stakeholders (including Value Assurance Team members), securing a
facilitator, coordinating and maintaining an up-to-date Risk Register, and for
monitoring risk responses for completion and effectiveness. For programs, the
program Risk Register will be administered by a program Risk Manager, with
similar responsibilities to the project Risk Manager, as mentioned above.

In addition to facilitation, PMOD shall provide advice and support to projects to

commence and sustain their risk management activities, such as access to the
software and training required to effectively perform risk management.

10.3 PRM Deliverables

The facilitated PRM Events produce three key documents as described in the
Saudi Aramco PRM Guide. They are as follows:

1. PRM Plan

Documents the project background, context, constraints, key success

factors, major assumptions, dependencies, uniqueness, and other concerns.

Defines the methods and depth of risk analysis required, including the risk
tolerance.

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Identifies a cross-discipline risk team and describes the process of

monitoring and controlling risks, including risk activity scheduling, reporting
and training.

The PRM Plan is drafted/updated by the Risk Manager in collaboration with

the IPT and finalized by the facilitator prior to each PRM Event (workshop).

2. Risk Register

This document is a repository for all risk identification, assessment and

response planning. It is managed within the PRM Engine (PRIME) and is
prepared in collaboration with the IPT, by the facilitator during each PRM
Event. It is updated monthly by the project Risk Manager.

3. PRM Status Report

PRM Status Reports are outcomes of PRM Events, and shall also be
produced on a monthly basis following workshops. PRM Status Reports are
required to be endorsed by the IPT Leader. Implementation of risk
responses and conducting Risk Register updates in the PRIME on a
monthly basis is mandatory.

11 Interface Management (IM)

11.1 Interface Management Process

Interface Management is the management of communications, relationships,

and deliverables among two or more interface stakeholders. IM is based on a
structured process that augments project teams and construction contractors’
approach for decision making. It ensures that all involved parties producing
deliverables join to work as a seamless single system. It is conducted
continuously starting with the preparation of Interface Management Plan during
the FEL2/DBSP and commencing IM implementation during the Project
Proposal phase to the end of the Construction phase. IM is used to proactively
minimize rework in achieving project objectives and maximize project efficiency
in terms of cost, schedule and quality.

IM is required for all Type A and B projects and for all projects utilizing more
than one construction contractor. The process is defined by the combination of
specific project events outlined in Appendix A - Optimum Implementation
Timing for VIPs and Summary of VIPs Criteria, as well as a continuous process
of monitoring and control to ensure all parties are working towards the same
goal in a compatible manner. It is the responsibility of the IPT and their
contractors to hold IM meetings and implement IM.

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IM seeks to proactively manage all communications with and between

contractors regarding interface points where contract packages meet to
integrate the divisions of the overall facility being constructed. IM successfully
aligns stakeholders, EPC, service companies, and commissioning parties to
deliver large scale projects on time and within budget.

11.2 IM Implementation

Establishing a systematic method or process for accomplishing project interface

management-related activities involves utilizing a standardized interface
management system (IMS). Having an IMS standardizes the instructions and
guidelines to be followed for Interface Management.

PMOD has deployed the IMS as the tool for capital projects to manage the IM
value practice. The PMOD IM team works closely with large capital projects to
support the implementation of IM points by utilizing the IMS. This enables the
management and tracking of all interface points where different contractors
need to integrate to realize the overall facility construction.

It is the responsibility of the project team to schedule a Global Interface

Management meeting and required workshops at least three times as outlined
in Appendix A - Optimum Implementation Timing for VIPs and Summary of VIPs
Criteria.

11.3 Number, Type and Method of Interface Points

The IPT is responsible for establishing the number, type, and method of
interface points required for each project package and uploading the
information into the IMS.

11.4 Interface Points Documentation

All documentation related to interface points including agreements shall be

uploaded into the IMS.

11.5 Interface Management Plan

The Interface Management Plan identifies and details the interface

management approach, required interfaces to be tracked among existing and
new facilities and among contractors, and the tools to be used for tracking the
interface points.

The plan provides oversight of the interactions and information flow between
the major players. The main components of the document include the
following:

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• Project Information

• Contractor Scopes of Work and Interfaces

• Master Interface Register

• Interface Management Process

Interface Roles and Responsibilities

The roles and responsibilities of the three identified roles in the Interface
Management System are:

• Interface Manager is the single point of contact for each contractor and
approves electronic forms for the contractor

• Technical Contact is the interface discipline lead for the contractor

• Observer is commonly granted to Company personnel on the project in

addition to Contractor personnel to search and report on interface
documents progress.

11.6 Deliverables

The IPT should submit the following deliverables after each IM event as
outlined in Appendix A - Optimum Implementation Timing for VIPs and
Summary of VIPs Criteria.

• Interface Management Plan

• Number, Type, and Method of interface points

The content of these deliverables should be relevant and address the objectives
of the respective gates. Gate objectives are outlined in SAEP-17.

12 Execution Phase Handover Review

Capital Projects Handover Reviews shall be conducted for CMS projects at the
execution phase identified by three milestones, 60% detailed design, 30%
construction progress, and 70% construction progress. The objective of the
review is to provide a neutral perspective to management, including Project
Sponsor, of the current status of project handover readiness. It aims for early
identification and resolution of handover challenges, proper planning and
compliance and assurance of early stakeholder engagement and alignment for
smooth handover. For details see SAEP-17.

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13 Responsibilities

13.1 PMOD

PMOD is responsible for:

• At the beginning of each year or at the initiation of each project, assist the
IPT to identify the required VIPs to be implemented for the individual project,
Budget Item (BIs), etc.

• Issue the Applicable VIP report to the IPT and identify the strategy for
facilitation services.

• Monitor the quality and the timeliness of the VIP sessions.

• Track the performance of the AVIPs outcome implementations using KPIs

and VIPs utilization report that measures the quality and success of the VIP
program.

• Provide facilitation services to the extent possible.

• PMOD administers the VIP applications and provides access to the Value
Improving Practices Automated System. Projects should coordinate end-
user training requirements with PEDD or a qualified third party. As a last
resort, PMOD may be approached to facilitate systems training on an as-
needed basis.

13.2 IPT Leader

The IPT Leader is responsible for:

• Prior to conducting any VIP session, the IPT shall contact

VIPITSYSTEM@aramco.com for any clarification, additional information,
and for the latest guidelines and updates on the VIP deliverables.

• Reviewing the recommended VIPs for the individual BIs at beginning of

each project and providing feedback to PMOD/POD.

• Soliciting and scheduling the facilitation services from engineering

contractors, approved facilitators or from PMOD/POD prior to the optimum
timing of the recommended practices.

• Keeping PMOD/POD informed of all value practices that will be facilitated by

engineering contractors

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• Approving the final VIP deliverables (including the VIP Reports) upon
completion of the draft VIP deliverables review by PMOD

• Implementing the required VIPs and their recommendations and providing

status and study reports to PMOD/POD.

• Submitting VIPs Reports facilitated by others to PMOD/POD for review.

• Review and validate the technical and commercial impact of all accepted
and implemented proposals

• The documentation and validation of all the cost avoidances generated from
applicable VIPs as per company policies including SABP-A-175.

• Document in the Value Engineering section of the FEL3/PP the status and
resolution of all accepted VE proposals and provide justification for the not
accepted VE proposals.

• Reach a resolution in regards to the “Accepted for Further Study” concepts.

At the end of the FEL3/PP, all items should be either “Accepted” or “Not
Accepted”. If there is a dispute on the sufficient level of technical justification
between the VE SME and IPT then Engineering Services SMEs appropriate
discipline shall be involved. IPT should obtain the ES SME written response.

• Provide a copy of the final VE report to PMOD/POD no later than four weeks
from the completion of the VE session in the FEL3/PP or FEL2/DBSP
phase.

• Submit Applicable VIPs Outcome Reports to PMOD for review and Value
Assurance during Stage Gate.

• The IPT Leader, in conjunction with the VIP facilitator, shall determine the
key attendees and ensure that the appropriate stakeholders from
Engineering Services and other SME organizations from Saudi Aramco are
invited for the VIPs workshops. If any of the key attendees are unavailable,
the IPT shall reschedule the workshop.

• Ensure fulltime attendance of IPT members for the duration of the workshop
with meaningful engagement.

• Attend the Implementation Meeting and sign off on the final outcome.

• After completing any workshop, populate all generated action items using
the VIPs Action Items Implementation Tracking Data Input Template and
forwarded to the PMU/POD to log it into the VIPs automated tracking

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application for needed follow-up (contact the PMU/POD for the latest Data
Input Template).

• Updating and closing all due action items in the PMOD Value Improving
Practices Automated System.

Lessons Learned VIP workshops shall be conducted by PMOD facilitators for

Type A and B projects, unless PMOD authorizes the IPT to solicit the services
of an approved PMOD facilitator.

13.3 VIPs Facilitators

The VIP Facilitator is responsible for:

• At the request of FPD, the IPT Project Leader/Manager or PMOD/POD shall

conduct the facilitation and prepare the final report within the required
timeframe.

• Submit draft VIPs Reports to PMOD/POD for review.

13.4 Other Departments (Including Proponents)

Ensure that the qualified participants attend the required facilitation sessions.

13.4.1 Engineering Services (ES) Departments

• Facilities Planning Department to review the Post Project Appraisal

after Management Committee meetings and identify potential lessons
to be added to Project Management’s Lessons Learned Program
using the LLC standard format.

• For Type-A projects, responsible ES departments shall deliver special

knowledge sharing presentation addressing critical engineering topics
from various functions and process areas (e.g., CSD: corrosion,
structural/ piping vibration, burn pits, electrical, heat exchangers;
P&CSD: flaring, process automation, MEG issues, WGP foaming) per
mutual agreement with the IPT.

• Upload the presentation material to Sharek Knowledge Base:

https://sharek.aramco.com.sa/Cops/KB/KnowledgeWorkshops/.

13.4.2 Proponent/ Operations Departments

Conduct LLC six months after the project completion and coordinate with
PMOD/POD for facilitation services.

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Appendix A - Optimum Implementation Timing for VIPs and Summary of VIPs Criteria
FEL 0 FEL 1 FEL 2 FEL 3 EXECUTION
INITIATION BUSINESS CASE STUDY DBSP PP DD CONSTRUCTION
VIP
0%- 0%- 90%- 0%- 90%- 0%- 90%- 0%- 90%- 0%- 90%- 0%- 90%-
30% 60% 100% 30% 60% 30% 60% 30% 60% 30% 60% 20% 60% 20% 60%
10% 10% 100% 10% 100% 10% 100% 10% 100% 10% 100% 10% 100%

A, B, C
1 LLI A, B, C
C1
A, B, C

A, B, C, A, B, C,
2
PP&TA A,B
C1
(BEAM) **
***

3
VE + A, B, C
A, B, C
(PS&DTC) C1
A, B, C, A, B, C,
4 PFSU C1 C1
A, B, C,
5 CONST. A, B, C
C1
A, B, C
A, B, C A, B, C A, B, C
6 PRM A, B, C A, B
C1 C1 C1
A, B, A, B,
7 PDRI C, C1 C, C1
8 IM A A, B A, B A, B
A,
9 SC&CM B, C
A, B, C
10 LLC* A, B, C A, B, C A, B, C
C1
* One LLC with Operations (OKW) shall be conducted six months after the project completion **Conduct BEAM *** PP&TA - conduct C1 and when the design team changes for A, B and C

VIP PROJECT TYPE VALUE > PARTICIPANTS

1 LLI / LLC A, B, C, C1 $10 MM SAPMT, Proponent, FPD, ID, LPD, Contractor, and other parties as needed
2 PP&TA A, B, C, C1 $30 MM SAPMT, Proponent, FPD, ID, LPD, Contractor, and other parties as needed
3 VE A, B, C, C1 $30 MM FPD, CSD, SAPMT, P&CSD, Contractor, Project Stakeholders, PMOD
4 PFSU A, B, C, C1 $30 MM Project Stakeholders, PMT, Proponent, Contractor, etc.
5 CONST. A, B, C, C1 $30 MM SAPMT, ID, Contractor, Proponent and other parties as needed
6 PRM A, B, C, C1 $ 10 MM SAPMT, Proponent, FPD, Contractor, and other parties as needed
7 PDRI A, B, C, C1 $30 MM SAPMT, Proponent, Contractor, and other parties as needed
8 IM A, B $50 MM SAPMT, Proponent, Contractor, and other parties as needed
9 SC&CM A,B, & C $30 MM SAPMT, Proponent, Contractor, and other parties as needed

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Appendix B - Saudi Aramco Projects Portfolio Characterization

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Appendix C – VIP Action Items Worksheet

Click the hyperlink <Action Items Worksheet> to download the editable version. Note,
each VIP has an individual tab on the worksheet, so ensure you are selecting the
appropriate form for submittal.

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Document History
22 December 2021 Editorial revision.
15 July 2021 Major revision to reaffirm content.
3 May 2020 Editorial revision. Changed the contact person, CPED to PMOD, SABP-A-12 to
SABP-A-012, and removed cancelled SAES-N-004.
2 May 2019 Editorial revision to comply with content confirmation requirements
22 February 2018 Major revision that include alignment of Lesson Learned Program with Corporate
Knowledge Management Initiative, alignment of VIPs process with Operational
Excellence, tracking implementation and reporting of non-
performance/escalation, optimization of the timing and frequency of certain VIPs,
inclusion of C1-Type Projects to FEL 2 KPI calculations and additional
clarifications regarding project characterization and adding modularization and
construction and design technology into Constructability assessment
requirements.
16 September 2015 Major revision to incorporate ATP-CE’s Capital Management System (CMS).

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