The value of a hydrocarbon opportunity can be maximised by:
• Minimising lifecycle costs
• Minimising realisation times1
• Obtaining or bettering planned production rates and volumes
• Securing the best possible market terms
All of the above must be obtained without prejudicing Group Business Principles or
Health, Safety and Environmental objectives.
Research and benchmarking shows that appropriate tools deployed at the appropriate
time in support of an ORP type process increase the value of projects by:
• Improving decision making
• Reducing non-critical scope items
• Increasing reliability
• Simplifying and streamlining work processes
• Reducing rework
• Building committed teams
• Leveraging experience from other projects
2.4.1 Front End Loading
As illustrated in Figure 2.4.1, the most potent opportunity for maximising the value of
project outcomes occurs during the first three ORP phases. The emphasis on these
phases is known as Front End Loading (FEL).
Without proper attention to the quality of work in the front end of a project, the project
will almost certainly fail to meet its objectives. The influence of FEL on a project is
shown in another way in Figure 2.4.2 that has been built-up from analysis of many
projects.
Too often in the past, failure to meet objectives has been blamed on poor execution but,
when analysed properly, very, very often the problems in the Execute Phase have arisen
because of poor preparation in the first three ORP Phases. This may have been because
insufficient time and/or funds were allowed, because objectives were not clear, because risks
were not properly recognised and managed or because of a failure to bring the right
competences to the Front End thinking and planning.
However, FEL is not an invitation for excessive studies or numbers of people. It is far more
about having the appropriate competence available at the right time and applying the
appropriate tools in a timely and competent fashion.
2.4.2 ORP Toolbox
As an opportunity is matured, there should be a continuing search to drive up value.
Value improving practices such as Value Engineering are phase-based tools. Their purpose
is to enable the identification and realisation of maximum value from the opportunity as
early as possible in the realisation process. These practices are derived both from excellent
project performers and from good Shell practices that already exist, and the aim must be to
leverage these across all Shell opportunities
Benchmarking between projects and companies has found a statistical correlation
between the use of such practices and the success of project outcomes. In other words,
projects that employ applicable value improving practices cost less, have shorter schedules
and better operational performance than industry average.
The ORP Toolbox is a collection of processes, procedures, guidelines check lists and peer
assists that support the completion of team work activities in each of the phases. Some of
the major tools that are available for ensuring maximum value realisation are shown in
the figure below mapped against the ORP phases in which they are used. (These, while important, are indicative only and a full listing is contained in Chapter 6.) As the
Opportunity Realisation Process matures throughout Shell, this suite of tools will be
amended and supplemented. Some tools are supported by Peer Assists by which expert
input is obtained from third parties, including the SIEP Realise the Limit (RtL) Team.
The Improvement Process 2 describes how all of this may be brought together and how the
various tools in the Toolbox may be used in the process either to optimise the scope of
facilities, (and so optimise cost and schedule while maintaining facility functionality) or to
enhance business processes.
Not all areas of Shell’s EP business will find direct use for all of the tools discussed in the
following sections. However, lateral thinking should be used to determine whether the
principles the tools promote can be adapted and applied on a particular opportunity.