FEL Planning

Delivering Success Through Strategic Front-End Loading

FEL Services

Estimating (gated processes)
- (+/-10%, +/-30%+/-50%)
- HAZOP assistance
Scheduling (P3, P5, Microsoft Project)
Project Controls
- budget tracking
- forecasting
- cash flow
- reporting
Project Management
Construction Management
As-builts
Procurement tracking / expediting and tracking.
Logistics/shipping/delivery

Front-End Loading (FEL), also known as pre-project planning (PPP), is a crucial process in the engineering, procurement, and construction (EPC) industry. Let’s delve into the details:

Conceptual Development:
- FEL involves the conceptual development of projects in processing industries such as upstream oil and gas, petrochemicals, natural gas refining, extractive metallurgy, waste-to-energy, and pharmaceuticals.
- During this phase, strategic information is developed to help project owners address risks and make informed decisions about resource allocation. The goal is to maximize the potential for project success.

Early Planning and Design:
- FEL emphasizes robust planning and design early in a project’s lifecycle, specifically at the front end when the ability to influence design changes is high and the cost of making those changes is relatively low.
- It is particularly relevant for industries with highly capital-intensive, long-lifecycle projects (e.g., projects involving hundreds of millions or billions of dollars over several years before generating revenue).

Stage-Gate Process:
- FEL typically follows a stage-gate process. At well-defined milestones within the project’s lifecycle, the project must pass through formal gates before receiving funding to proceed to the next stage of work.
- The quality of front-end planning can be enhanced using the Project Definition Rating Index (PDRI) as part of the stage-gate process.

Stages of FEL:
- FEL activities are divided into five stages:
  - FEL 0 - Conceptualization: Initial evaluation and feasibility assessment. Costs represent a small percentage of the total investment (around 1% to 5%).
  - FEL 1 – Feasibility Evaluation: Higher costs than FEL 0 but still a relatively small fraction (approximately 5% to 15%).
  - FEL 2 - Preliminary Design: Costs increase further (around 10% to 20%).
  - FEL 3 - Basic Design: More significant costs (approximately 15% to 30%).
  - FEL 4 - Project Execution: Majority of the total investment, including construction and start-up (around 50% to 70% or more).

In summary, FEL ensures that capital projects are well-planned, minimizing risks and maximizing returns for investors. It’s a critical step toward successful project completion within budget and on time.

FEL Planning

Estimating (gated processes)

(+/-10%, +/-30%+/-50%)

HAZOP assistance

Scheduling (P3, P5, Microsoft Project)

Project Controls

budget tracking

forecasting

cash flow

reporting

Project Management

Construction Management

As-builts

Procurement tracking / expediting and tracking.

Logistics/shipping/delivery

​​

Conceptual Development:

FEL involves the conceptual development of projects in processing industries such as upstream oil and gas, petrochemicals, natural gas refining, extractive metallurgy, waste-to-energy, and pharmaceuticals.

During this phase, strategic information is developed to help project owners address risks and make informed decisions about resource allocation. The goal is to maximize the potential for project success.

Early Planning and Design:

FEL emphasizes robust planning and design early in a project’s lifecycle, specifically at the front end when the ability to influence design changes is high and the cost of making those changes is relatively low.

It is particularly relevant for industries with highly capital-intensive, long-lifecycle projects (e.g., projects involving hundreds of millions or billions of dollars over several years before generating revenue).

Stage-Gate Process:

FEL typically follows a stage-gate process. At well-defined milestones within the project’s lifecycle, the project must pass through formal gates before receiving funding to proceed to the next stage of work.

The quality of front-end planning can be enhanced using the Project Definition Rating Index (PDRI) as part of the stage-gate process.

Stages of FEL:

FEL activities are divided into five stages:

FEL 0 - Conceptualization: Initial evaluation and feasibility assessment. Costs represent a small percentage of the total investment (around 1% to 5%).

FEL 1 – Feasibility Evaluation: Higher costs than FEL 0 but still a relatively small fraction (approximately 5% to 15%).

FEL 2 - Preliminary Design: Costs increase further (around 10% to 20%).

FEL 3 - Basic Design: More significant costs (approximately 15% to 30%).

FEL 4 - Project Execution: Majority of the total investment, including construction and start-up (around 50% to 70% or more).

​In summary, FEL ensures that capital projects are well-planned, minimizing risks and maximizing returns for investors. It’s a critical step toward successful project completion within budget and on time.

​

In summary, FEL ensures that capital projects are well-planned, minimizing risks and maximizing returns for investors. It’s a critical step toward successful project completion within budget and on time.