The Procurement Dilemma
Pay now or later
Houston 2010 – Jorge Duchini
Quality is Free
The old Quality College
VW or Ferrari – What do you need?
The kitchen industry vs. Heavy chemical
How you could save one million euros during
a project? Why?
This is a perception of the Chemical Projects
316L pipe lines cost is reduced by 1 million euros
During the first operation with chemical it failed. It was showing
The Ni content is in accordance with the specification. But it is
in the low range, near 10%, Mo same (2%)
Some of the leaks were found near the pipe support.
All the QA report was produced a full dossier.
No register of any problem
A hydrotest was done but there was not evidence of the quality
of the water.
After the hydro, the line was not dry and not flushing was
A high pressure Hydrotreater (LSTK contract) save 25 penny
per 2” block valve. Total 1000 US$
During the start up one FE valve lost (blow) the bonnet. It was
the second of a double block in the top of the rack.
A H2 high pressure leak developed. It was a rainy night.
A very old operator (+30 yr) close the first valve.
A 316L distillation tower (PD= 10 barg) was built in a new shop
in a no-Australian group.
The original design was change to weld overlay.
The cost was reduce 50%.
After 6 months under normal operation it was develop several
New suppliers – Low cost (?)
PMI = Positive Material Identification
Positive no paper handling
Less Ni. (Thermo Scientific NITON XL3t XRF Analyzer)
Thickness just in the limit of the spec
Spectrotest for low C
The leaks out of the HAZ or the ones not in the bottom of the
pipe were Ni below the standard and/or C higher than 0.1%
MIC – 316L pipe
Not pad for the pipe supports.
3D model develop by IT vs. pipefitters
Craftsmen without the proper qualifications.
QC is critical.
The old expertise is gone
Water Quality. Check Cl-
MIC? Is this news? Why now?
Not draining or flushing.
Water and the food for the bacteria
It is critical the cleaning
The Start up
The time of the true story
Normal you start circulating a raw material or
the final product before you start the
Passivation will help to discover problem.
If the project save money, at this time you will
need to increase your maintenance budget.
Or frequent shut downs.
Or safety incidents
During the procurement of the case 3 it was considered to use
an European company but maintaining the solid 316L design.
The delta TIC was 750 M US$. (100%)
The plant was done during one week. The lost of production
was 6,300 tons (or around 1 million US$ - at net profit level)
Should the projects be evaluated by the TIC?
Should the Project Manager be responsible for the
Maintenance and operation cost?
Use old piping designers.
PMI all your components
Purchase from a reputable company
Avoid unnecessary savings.
Test the quality of the water
Budget an excellent QC & Commissioning
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