Plant Construction Business and Mechanical Design

▣ Establishment of EPC Contracting Business

 

Investor (Owner)

• Seeks to generate profit through plant operation (production and sales)
• Expects the completion of a high-performance plant at a low cost within a short period

Plant Construction

• Involves different work processes (design, procurement, construction, commissioning)
• Requires expertise, diversity, high-level technology in each process, and the involvement of related companies

Since the owner’s main business is plant operation, they lack the capability for plant construction.

-> This brings forth the core issue of "efficient integrated management" in plant construction.

 

 

[ Plant Engineering Companies or EPC Contractors ]

• Specialized field that performs integrated management of plant construction
• EPC Contracting Business is a primary business area
• Numerous companies exist in Korea, the United States, Japan, Europe, etc.

 

▣ Meaning of Plant Engineering

(1) Definition (by Japan Chemical Engineering Association)
Engineering, Procurement, Construction, Commissioning (EPCC)
A comprehensive operational technology that, from the initial corporate planning and research to design, procurement, construction, and commissioning, organically integrates various specialized technologies, manages and coordinates them based on a unified idea in terms of budget, schedule, quality, and rationality, and organizes them efficiently and economically.

 

 

(2) Plant Construction Project Execution Organization

• Carried out by a project team formed after contract signing
• Consists of the Project Management Team (manages the project) and the Project Work Execution Team (directly performs construction work such as EPCC)
• Operated as a Matrix or Task Force organization depending on the project’s nature

 

 

▣ Workflow of Plant Engineering

• Performed throughout the entire life cycle of a plant project
• Plays a leading role from the Proposal stage for bidding to the Closing stage after project completion