KOHASA ENGINEERING COMPANY LIMITED

PLANNING PROCEDURE
(REF.NO. KECL-SOP-F-016)

APPROVAL AND REVISION STATUS Rev. No. 00 Issue Date 24-10-2011 Revision Identification First Revision Prepared By Management Representative Reviewed by Approved by

KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE
CHANGE (S)/AMENDMENT (S)

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The change(s)/amendment(s) noted below have been made and approved by the Managing Director for issue.

Change/Amendme Date nt No.

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Description of Change/Amendment

TABLE OF CONTENTS
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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE
CONTENT 1.0 2.0 3.0 4.0 SCOPE PURPOSE RESPONSIBILITIES SCHEDULE structure 4 5 5 7 8 8

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4.1 Level 1 Schedule 4.2 Level 2 Schedule 4.3 Level 3 Schedule 4.4 Detail Schedules 4.5 Physical Progress 4.6 Resources 5.0 6.0 7.0 8.0

PROJECT PROGRESS/SCHEDULE MONITORING REPORTING REFERENCES ATTACHMENTS

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8.1 Invoicing on Schedule of rate or call-out Contract 9.0 Attachment 1 - Schedule Methodology 11 12 13

10.0 Attachment 2 - Schedule Hierarchy 11.0 Attachment 3 - Network Schedule Control Principles

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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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1. SCOPE This procedure covers overall planning, scheduling and schedule control requirements for projects and identifies specific schedule reporting and control applications. 2. PURPOSE To identify the types of systems to be used, format, content and maintenance. To establish a procedure to implement an effective and comprehensive project planning and schedule control program. Attached schemes illustrate schedule hierarchy (Attachment 1), planning and scheduling methodology (Attachment 2) and network schedule control principles (Attachment 3). 3. RESPONSIBILITIES Under the direction of the Project Manager, the tasks related to planning, scheduling and their control are supervised by the Project Control Manager, developed by the Planning and Scheduling manager who is assisted by a team of skilled engineers. Preparation and maintenance of reports and charts are assigned as follows: Level 1 - Contract Schedule managed by Project Manager, maintained by Planning and Scheduling Manager. Level 2 - Planning and Scheduling Manager. Level 3 - Planning and Scheduling Engineers in liaison with Lead Discipline Engineers and Site Representatives, under Planning and Scheduling Manager supervision. Schedule updating - Planning and Scheduling Engineers in liaison with Lead Discipline Engineers and Site Representatives are responsible for the input and updating of schedules and detailed control documents. 4. SCHEDULE STRUCTURE The schedules will be developed in compliance with milestones and data defined in the Contract. Project scheduling activities are implemented on a hierarchical basis of four levels, defined as follows: 4.1 Level 1 Schedule The Level 1 Schedule, presented with a bar chart format, provides an overview of the Project main steps and interfaces. This schedule is part of the Contract. It is intended to provide a general synthesis of the project scope organisation to the top management level and to show all the main contract phases. This Schedule of the main activities covers all the phases of the Project execution and shows all the main contract phase milestones. The level 1 Schedule results from a thorough analysis of the duration of each activity and of the identification of the logics between the various activities. Rev 00 Page 4

KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE
This schedule is a roll-up of the level 2 schedule.

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4.2 Level 2 Schedules The main purpose of the level 2 Schedules is to set up an overall monthly project status, used by the Project Management to take appropriate decisions. They are made of a set of schedules, one for each main area: Engineering Procurement Construction Plant Shutdown Hook-ups-Commissioning, These schedules cover all project phases by group of activities in each discipline. They identify the main milestones necessary to reach the contractual objectives, the main interfaces between the groups of tasks in each discipline, the duration of each main step of the procurement cycles by group of requisitions (inquiry, purchase order, delivery on site). The level 2 schedules, which are synthesis of the level 3 schedules, are intended to provide overall control of the job, defining milestone dates for engineering, procurement, subcontracting, fabrication, transportation, installation, hook-up and commissioning activities, and showing the major restraints and relationships between them. For reporting purpose, this set of schedules is prepared using Milestones Professional software. Automated roll up from level 3 schedule described below will be performed to ascertain consistency of the level 2 schedule. These schedules are included in the Project Monthly report with the status updated. 4.3 Level 3 schedule 4.3.1Principle The level 3 Schedule is used for the day-to-day follow-up of each activity to be carried out during project execution. It is a CPM network developed with Primavera or Microsoft Project software package, using the WBS and OBS structure developed for the project. It gives enough detailed information so as to allow:

The Project Management team to coordinate all activities of the project, The engineering Departments, the procurement and the Area Superintendents at site to be able to plan and optimize their detailed activities and the related manpower resources, The preparation of the implementation of the physical progress monitoring system, Page 5

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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE
4.3.2Content

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This schedule covers all phases of the project scope, engineering, procurement, subcontracting, fabrication, transportation, installation, hook-up and commissioning by group of activities and units and identifies:

All the project milestones (the schedule milestones, and the common milestones of the entire project where EPC is involved) which will be linked with the activities required to meet them,

The interfaces between engineering disciplines, The interfaces between technical data supplied by equipment vendors and needed for engineering purpose (vendors drawings), The equipment and material deliveries per unit or area and per site, The activities of various subcontractors involved in construction works, taking into account the necessary interfaces, The priorities in the issue of construction drawings and the delivery of equipment/materials taking into account the fabrication and erection sequences by area, The priorities in the issue of construction drawings and the delivery of equipment/materials taking into account the fabrication sequences by area,

The transportation, installation, hook-ups and commissioning activities.

4.3.3Coordination with sites The coding structure of the level 3 schedule will be provided to subcontractors, using Primavera or Microsoft Project, for their contributing part of the project. Level 1 and level 2 schedules, as well as interface milestones, will also be provided to them. Interfaces will be coded so that they can be extracted and highlighted. These elements will allow them to develop their part of the level 3 schedule. Integration, consistency and planning interfacing will be performed at Contractor project head office. 4.3.4Coordination with other parties Milestones with other contractors, with Company or with other third party will be coded so that they can be extracted. A table and/or a milestones schedule can therefore be used for coordination with these parties. 4.3.5Calculation Float is calculated for each activity and a critical path for the project is identified. Rev 00 Page 6

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Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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Periodically updated with actual data, it is used for the trend analysis. Narrative descriptions explaining main assumptions made and critical paths identified and highlighting main achievements are attached to the first issue and schedule revisions of Level 3 schedule. 4.3.6Evolution of the level 3 schedule Once approved by Company, this schedule becomes the Project Execution Schedule. This schedule will then be used as the target against updates and trend analysis. The level of detail of the remaining activities of the level 3 schedule will increase with the evolution of the project, as the project definition improves and as the project execution plans evolve, focusing on subsequent phases of the project. Revisions to the Project Execution Schedule will be performed only when major changes occur during the life of the project, and will require Company approval before implementation. 4.4 Detailed Schedules 4.4.190 day look ahead schedule: At the commencement of the project and prior to the development of the Level 3 schedule, a 90 day schedule is prepared and issued to plan in detail all works performed within that period by discipline. This schedule is updated every two weeks and used for control until the level 3 schedule and the engineering and procurement progress measurement systems are implemented. 4.4.2Engineering Detailed control schedules: Once budget breakdown and level 3 schedules are defined and issued by the project team, engineering disciplines are able to set up the detailed schedules of their activities in the time frame defined by the level 3 area schedule. 4.4.3Specific milestones schedules: Specific schedules can be developed, based on the level 3 schedule, focusing on a particular set of activities 4.4.4Fabrication/Erection schedules On each site, detailed fabrication/erection schedules are developed by the Fabricators Scheduling Engineer on the basis of the level 3 schedule, before the start of the construction works. These schedules, detailed by unit/area of fabrication, are developed on the basis of the fabrication plan and relevant priorities while compromising with upstream engineering and procurement constraints. Rev 00 Page 7

KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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The detailed fabrication schedules allow fabrication monitoring on the basis of a periodical evaluation of the remaining durations and issues of trend/forecast analysis and critical activities status. These detailed schedules are the basis for implementation of the Fabrication Progress System. 4.4.5Transportation, Installation, Hook-up and Commissioning activities A detailed schedule will be developed for Transportation, Installation, Hookup and Commissioning activities based on the logical related sequences. 4.5 Physical progress The detailed schedules are used for tracking the physical progress by discipline, area and trade at a very elementary level, as well for engineering, procurement and site works. Progress measurement systems are based on detailed work items, weighted and progressed on identified milestones (progress scales). Specific in-house software are used for physical progress measurement except for procurement/manufacturing activities where PRIMAVERA or Microsoft Project shall be used: The level 3 schedule will be the basis to set up planned dates for each step of each deliverable in the progress measurement system (for each phase of the project). 4.6 Resources Resources will be measured, initially by determination of planned hours, then through monitoring of actual and forecasted hours, for engineering and construction. Related histograms will be produced. 5. PROJECT PROGRESS/SCHEDULE MONITORING At each agreed cut-off date, the progress measurement systems are updated with actual data. These data will be used for the calculation of actual and forecasted progress. Appropriate data and information will be used for updating the level 3 schedule. A Trend Analysis will be supported by the level 3 schedule simulation report allowing the determination of the new completion dates (final and intermediate) resulting from the actual progress. The total floats of the remaining activities will be automatically calculated and shown. This trend report will enable all new critical work items to be anticipated and new completion dates to be forecasted, as well as decision on recovery plans, when necessary. New forecast dates for remaining and downstream activities, progress curves, mobilization histograms and corresponding efficiency ratio will allow and help the Project Management to make decisions for corrective actions. Corrective actions will be tracked by Project Control Manager and Scheduling Team as per the action list/action plan approved by the Project Management

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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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6. REPORTING In accordance with the contractual requirements, the following documents will be included in the Project Monthly Report: Bar chart schedule (Level 1 and 2 schedules) showing the progress on a broken line established on the basis of reference schedule. Critical path schedule, with the status of the actual progress and anticipated critical activities. Progress "S" curves and histograms (overall, home office activities, construction). List of activities to be completed or to be initiated in the succeeding reference period. Schedule trend analysis with forecast remaining duration versus planned activities. Narrative and alert notice highlighting areas of concern. 7. REFERENCES Progress Measurement System Procedure (NGGN-TCE-1A-AP-036-ZA-1605) Work Breakdown Structures Procedure (NGGN-TCE-1A-AP-036-ZA-1601) Project Progress Reporting Calendar Procedure (NGGN-TCE-1A-AP-036-ZA1602) 8. ATTACHMENTS Attachment 1- Schedule Methodology Attachment 2Attachment 3Schedule Hierarchy Network Schedule Control Principle

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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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Attachment 1 - Schedule Hierarchy

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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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Attachment 2 - Schedule Methodology

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KOHASA ENGINEERING COMPANY LIMITED

Ref. No:KECL-SOP-F-016 Rev. No:00 Issue Date: 24th Oct, 2011.

PLANNING PROCEDURE

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Attachment 3 - Network Schedule Control Principle

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