W5_Ocharlie_NORSOK Z-014 cost codes

Problem definition

NORSOK-Z-014 has 3 WBS classifications. Are they distinct and independent?

Feasible alternatives

NORSOK Z-014 PRESENTS 3 WBS options;

PBS – Physical Breakdown Structure

SAB – Standard Activity Breakdown

COR – Code of Resources

Develop the outcome of each alternative

Table 1 Rating of the alternatives against WBS attributes

ATTRIBUTES	PBS	SAB	COR
Product visibility	Breaks work elements into physical/functional components	Presents a coding system for use throughout all phases of a project from exploration through removal of facilities	Presents a complete scale of resources involved in developing offshore and land based resources.
Bases for historical data	Good	good	Good
Costs estimates	Good	Good	Good
Weight estimates	Good	Good	Good
Level	Functional areas composed of COR elements.	Identifies  developmental phases of oil and gas projects	Identifies individual records, items, lines, components or elements of estimates which constitutes the PBS and happens in SAB phases
Includes all work element	Fair	Good	Good
Coding norm	letters	numbers	letters

 

Selection of criteria

Consider the Retrofit work breakdown structure fig. 1

 

 

The fig. 1 shows the WBS elements that make up the work scope.

 

 

 

 

 

 

Analysis of alternatives

PBS coding norm

AAC  Process and Utilities

AACB  Process Support

SAB Code

1 Management

11 Project Management

13 External services   

22 Procurement

23 Construction supervision

3 material deliveries

31 Equipment

311 Company provided equipment

312 Contractor provided equipment

32 Bulk

321 Company provided bulk

322 Contractor provided bulk

41 Onshore Construction

411 Mobilisation

413 Fabrication of major assemblies

4132 Installation/Installation/Erection

414 Other fabrication

418 Weighing, Sea fastening and load out

44 Offshore

441 Mobilisation

4432 Installation/assembly/Erection

445 Modification

 447 Commissioning

448 Non-working hours (lunch, stand by etc)

52 Offshore operations

5245 Hydrotesting

526 Transports

5284 Removal/Lifting

5284 Transport/Dumping

53 Logistics

531 Supply base

533 Personnel transport

534 Flotel/LQ/Camp

7 General

COR Code

B Bulk Materials

BE Electrical bulk

BEA Cables and cable accessories

BEB Cable supports and transits

BED Junction boxes

BEE Accessories

BEZ Other electrical bulk

BJ Instrument and Telecommunication bulk

BJE Instruments

BJB Instrument valves

BJC Cables and cable accessories

BJD Junction boxes

BJE Tubing

BL Piping bulk

BLA Pipework

BLB Manually operated valves

BLE Supports

BLD Insulation

BLZ Other piping bulk

BM Surface protection bulk

BMA Paint

BMB Coating

BN Structural bulk

BNA Primary and secondary structures

Temporary Installation aids

BND Grillage/Seafastenning/Load out

BNZ Other structural bulk

BZ Consumables and first fill

BZA Consumables

C Construction overhead

CA Contractors organisation

CAA Construction management

CAB General site administration

CAC Office expenses

CAD Personnel expenses

CAE Miscellaneous expenses

CB Site facilities

CBA Construction facilities

CBB Material storage facilities

CE Miscellaneous overhead costs

CZ Other construction overheads

HA Project management

HAA Project managers

HAB Quality assurance

HAC Health Safety and Environment (HSE)

HB Project Administration

HBA Administration

HBB Finance and accounting

HBD Document control

HC Procurement

HCB Purchasing

HCC Expediting/Traffic/Logistics

HCD Material control/Inspection

HD Project control

HDA Estimating

HDB Cost control

HDC Planning and scheduling

HDD Reporting

M Indirect labour

MA Foreman/Supervision

MB Quality control

MC Scaffolding

MD Cleaning

ME Transport

MF Rigging

MG Material control and storage

MK Safety

ML Dimensional control

MZ Other indirect labour

Selection of preferred alternative

The COR codes show all cost elements of the WBS which happens in the SAB phases. The PBS codes only shows process and utilities which is a summation of the various COR code cost elements.

 Performance monitoring and evaluation

The 3 NORSOK Z-014 coding systems are complimentary.

References

Z-014 Standard Cost Coding Systems (SCCS) (Rev. 2 May 2012)

Retrieved from

www.standard.no/en/sectors/.../NORSOK.../Z.../Z-014

Hollman, J.K . (Ed). (2012). , Plan Project Scope and Execution Strategy development,

Humphreys, G. C. (2011). Definition of Scope, Work Breakdown Structure (WBS) and Dictionary, Project Management Using Earned Value (2^nd ed.), (PP. 45-58) CA, Humphreys & Associates Inc.