Getting to know the World of Megaprojects: The FEL Process - Part 2 of 3

In this podcast, Ricardo continues the series of three podcasts about the world of megaprojects. In this episode, he talks more about the concept of FEL (Front End Loading) and its great importance. In the next and final episode, Ricardo talk about teams, communications and how to engage the community in megaprojects.

Download (6 MB)

Episode transcript

The transcript is generated automatically by Podscribe, Sonix, Otter and other electronic transcription services.

Hello everybody welcome to the five Minutes PM podcast today. I like to continue the podcast series about Megaprojects and now I'm challenging myself to explain in five minutes, the front end that Loading Process so it'd be tough, but that at least let's try. So I like to start just explaining that FEL concept is exactly how we can translate all that, this ideas into successful. Captopril basically we have FEL zero FEL one FEL two FEL three.

And then we had a, we have execution and this startup, what is it? FEL zero. Its the first step. Its basic idea and concepts. Its just that. So you have an IDEO. What about having the airport here? What about we all do in this new Harvard electrical power plant here. What about starting this new city here? So the FEL zero, its usually a business decision. That's coming from an idea of someone with a very in temporary on their behavior.

And this, there is no format for that. There is no requirement, but this is pretty much a cloud. But when you turn to FEL one, we are talking about business case right now you're trying to start shaping, okay. Blame me batter about this idea. Why your planning, this mining company in this area of the planet, why your planning to do this new airport or this new big port in this area of the country.

So it's the business case. Does this idea that makes sense and look at the end of each FEL there is a gate. The gate means should I move forward or not? So usually FEL zero. If you think that way and the idea is not reasonable, you just live it there. But if you think it's reasonable, then you go to the business case. Of course you spend some time and some money to understand more after fel one, you think, okay, this makes sense.

This business case is a solid, there is a big potential for making the revenue for a private company or, or a big chance for us to do something very relevant for the society. With a big benefit. Then you move to FEL to Deanne. You start working really great. What does the FEL to the FEL two it's where you translate this to ideas into data to make sure you have the proper scope of the project. Okay. It's sometimes that, OK, let's go deep.

Lets try to select the scope in the FEL to a and then complete the scope in FEL to be, look, I'm not talking about one week. I'm not talking about two weeks. I'm talking about ears just on FEL two for this big, big Megaprojects. So it's very important that on FEL to AA you select the strategy. OK. What will be my opinion for the project sometimes?

And this is a very straightforward process, but sometimes this can take a huge amount of time because you don't have an idea of which kind of strategies you, you should you pursue. And then after this felt too, a you have a, a strategy and then you have a gate where you select the alternative. And if I say, look, let's move forward with this technology strategy or this strategy to approach the product. Then on FEL to B you will start to the design, you start the pro's that execution plan.

What do you want? You want to try to do everything before starting FEL tree, having all the information did this and to execute the project is a FEL to the decision. So you or not for sure yet that you we'll be building the damn or that we'll be building the new airport. Know you or just doing the deep study to make who do that, that you are in the right path. Remember we are talking about billions of dollars.

So you are bending some I'm out and it's not the norm, a relevant amount of money just to understand what you need to do. And if you do a great FEL too, you too, be very easy for you to understand if you should move forward are not because after FEL Today there is a gate and this is a very important gate. Should we move forward or not? And if you, we don't have a FEL to very detailed with a very nice Glen, very detailed.

You were starting to create your worst nightmare, all shaping everything regarding society and stakeholders should be done on FEL too. And then when you move to FEL tree, you are defining the project. It's very expensive. If you do not want to execute it because of that, we suggest spend time on FEL to define clearly before you move to FEL pre and stark, all the drawings, all the processes, all the detail, planning, all the , everything, because this is a big challenge because you need to feel all the tales and this would be required.

Hundreds of full time people we are talking about about usually two to 4% of the total cost of the project. So we're talking about the big amount of money and the FEL pre it's a exactly you need to as acute the project. So you spent 4% to know that you put on risk or the order 96%. So of course 4% is a lot of money, but nine is 6%. It's everything So you do the FEL tree.

And this look when we are talking about Megaprojects we are not talking about a three week project. We are talking about a 10 year project. So just FEL too. And FEL three usually takes three, four ears to do for a year. We are not talking about a three week meeting allows for all the lump sum contracts. They need the FEL because this will reduce changes, reduce claims, reduce major problems with the contract. Of course, after the FEL pre you go to them Q and a startup.

But of course, if you have good seeds, if you put the good products on the site or then you can have a good Harvard, but if you don't have good seeds, it's impossible to have good harvest. So it's very important that FEL too and FEL tree. And of course I'm spending any time, seven minutes to explain this, of course my expectations here for us to bring you from zero two, one, but the is still a long road for you to understand the concepts around this kind of Megaprojects, it's very important that you understand that.

Now I'm just sharing with you for your general knowledge. I'm not challenging you tomorrow. We start doing the nuclear power plant with billions of dollars, but this is just to give you an idea of how this complex, Megaprojects how the people handle it, handle this kind of major challenge that we are facing on the magazine and on the newspapers every single day. And next week, I want to talk to you about the communications and the team on this kind of big challenging environment.

So see you next week with another five minutes BM Podcast.

Menu

Resources & Insights

Products & Services

More Resources & Insights

Ricardo Vargas

Podcasts

Getting to know the World of Megaprojects: The FEL Process - Part 2 of 3

Search in Podcasts

Latest podcast episodes

Book recommendations