System Design Review ("SDR")

System Design Review (SDR): A Crucial Milestone in Oil & Gas Projects

In the complex world of oil and gas projects, meticulous planning and execution are paramount. One critical stage in this process is the System Design Review (SDR), a seller control gate that plays a pivotal role in ensuring the success of the project.

What is an SDR?

The SDR is a formal review conducted by the seller to evaluate and approve the top-level system design solution and its underlying rationale. This review scrutinizes the proposed system's ability to meet the project's functional, performance, and safety requirements. It also assesses the chosen technical approach and its feasibility within the project constraints.

The Importance of SDR:

The SDR is a significant decision point in the project lifecycle. It serves as the gatekeeper for moving forward with the detailed specification of the system. Here's why it's crucial:

Early identification of potential risks and issues: The SDR allows for early identification of potential problems with the design, enabling corrective actions to be taken before significant investment is made.
Validation of the design concept: The SDR ensures that the system design aligns with the project requirements and specifications, minimizing the risk of costly redesigns later in the process.
Clear communication and alignment: The SDR promotes clear communication between the seller and the buyer, ensuring that both parties understand and agree on the proposed system design.
Reduced project risks: By meticulously reviewing the design at this stage, the SDR helps mitigate potential risks associated with technical issues, schedule delays, and cost overruns.

Key Elements of an SDR:

System Architecture: Review of the overall system architecture, including the breakdown of subsystems and their interrelationships.
Functional Requirements: Assessment of how the system design meets the defined functional requirements and specifications.
Performance Requirements: Evaluation of the system's performance parameters, such as throughput, latency, and reliability.
Safety Requirements: Verification that the design incorporates appropriate safety measures and mitigates potential hazards.
Technical Feasibility: Assessment of the chosen technical approach, including the availability of components, materials, and expertise.
Cost and Schedule: Analysis of the design's impact on project cost and schedule, ensuring it aligns with the overall budget and timeline.

The Outcome of the SDR:

Approval: If the design passes the review, it is approved, and the project can move forward to the detailed specification phase.
Revision: If the review identifies significant issues or concerns, the design may require revisions before approval.
Rejection: In rare cases, the design may be rejected entirely if it is deemed inadequate or unfeasible.

The SDR is a critical milestone in oil and gas projects, ensuring that the system design meets the required standards and objectives. By meticulously evaluating and validating the design, the SDR helps mitigate risks, improves communication, and ultimately contributes to the success of the project.

Test Your Knowledge

System Design Review (SDR) Quiz:

Instructions: Choose the best answer for each question.

1. What is the primary purpose of a System Design Review (SDR)? a) To finalize the detailed design specifications. b) To evaluate and approve the top-level system design solution. c) To ensure the project stays within budget. d) To identify potential risks and issues in the early stages of the project.

Answer

The correct answer is **b) To evaluate and approve the top-level system design solution.** The SDR is a critical gatekeeper for ensuring the design meets project requirements before moving to detailed specifications.

2. Which of the following is NOT a key element typically assessed during an SDR? a) System Architecture b) Marketing Strategy c) Functional Requirements d) Safety Requirements

Answer

The correct answer is **b) Marketing Strategy.** Marketing Strategy is not directly related to the technical design evaluation of a system during an SDR.

3. What is the main benefit of conducting an SDR early in the project lifecycle? a) To avoid any potential delays. b) To ensure the project is completed on time. c) To identify and address potential risks before significant investment is made. d) To ensure the project team is properly trained.

Answer

The correct answer is **c) To identify and address potential risks before significant investment is made.** Early identification and mitigation of risks are key benefits of an SDR.

4. Which of these outcomes is NOT a possibility following an SDR? a) Approval b) Revision c) Rejection d) Re-bidding

Answer

The correct answer is **d) Re-bidding.** While re-bidding can happen in a project, it's not a direct outcome of an SDR. The SDR focuses on evaluating the existing design, not on initiating new bids.

5. The SDR is considered a "seller control gate." What does this mean? a) The seller decides whether or not the project should proceed. b) The seller determines the final cost of the project. c) The seller is responsible for ensuring the project meets quality standards. d) The seller has the authority to approve or reject the proposed design.

Answer

The correct answer is **d) The seller has the authority to approve or reject the proposed design.** The SDR is a seller control gate because the seller's evaluation and approval are required to move forward with the project.

SDR Exercise:

Scenario:

You are the lead engineer on an oil & gas project. Your team has developed a preliminary system design for a new pipeline installation. The SDR is scheduled for next week.

Task:

Prepare a list of 5 key questions you would ask during the SDR meeting to ensure the design meets all project requirements and specifications.

Exercice Correction:

Exercice Correction

Here are some example questions you could ask during the SDR meeting:

**How does the proposed pipeline design ensure safe and reliable operation under various environmental conditions (e.g., extreme temperatures, seismic activity)?**
**Have we considered all relevant regulations and industry standards in the pipeline design, particularly regarding materials, construction, and safety protocols?**
**What is the estimated lifespan of the pipeline, and how have we factored in maintenance and potential future upgrades?**
**How does the design minimize environmental impact during construction and throughout the pipeline's operational life?**
**Can you elaborate on the risk assessment conducted for this design, and how potential risks have been mitigated?**

Books

"Project Management for Oil and Gas" by Peter J. Hartley: This book covers various aspects of project management within the oil and gas industry, including design reviews and critical decision points.
"Oil and Gas Project Management: A Guide to Success" by David J. K. Taylor: This book focuses on practical aspects of oil and gas project management, likely providing relevant information on design reviews and decision-making processes.

Articles

"System Design Review: An Essential Step in Software Development" by [Author Name]: While not specific to oil & gas, this type of article can offer valuable insights into the general principles of SDR and its importance in ensuring successful outcomes.
"Critical Design Review (CDR) in Oil and Gas Projects" by [Author Name]: The Critical Design Review (CDR) is a closely related concept often employed in oil and gas projects. Searching for resources on CDR can offer helpful insights into the overall review process.

Online Resources

Society of Petroleum Engineers (SPE): The SPE website offers a wealth of information and resources related to oil and gas projects, including articles, technical papers, and case studies. Search their database using keywords like "design review," "critical design review," or "system design verification."
Oil and Gas Journal: This industry publication features articles, news, and analysis related to various aspects of the oil and gas industry, including engineering and project management. Search for articles that mention design reviews or related topics.
Industry Forums and Communities: Online forums and communities specifically dedicated to the oil and gas industry (e.g., LinkedIn groups, professional associations) can be good places to ask questions and engage with experts on design review processes.

Search Tips

Combine keywords: Use terms like "System Design Review," "Oil & Gas," "Project Management," "Critical Design Review," "CDR," "Design Validation," "Engineering Review," and "Pre-FEED" in your searches.
Utilize quotation marks: Enclose specific phrases in quotation marks (e.g., "System Design Review") to find resources that include the exact phrase.
Filter your search: Use advanced search options like "filetype:pdf" to find relevant documents or "site:.edu" to focus your search on academic resources.

Techniques

System Design Review (SDR) in Oil & Gas Projects: A Deep Dive

This document expands on the importance of System Design Reviews (SDRs) in Oil & Gas projects, exploring key techniques, models, software tools, best practices, and relevant case studies.

Chapter 1: Techniques

The SDR process employs several key techniques to thoroughly assess the proposed system design. These include:

Functional Decomposition: Breaking down the system into smaller, manageable subsystems to analyze individual components and their interactions. This helps identify potential bottlenecks and areas of weakness early in the process. Techniques like use case modeling and data flow diagrams are crucial here.
Failure Modes and Effects Analysis (FMEA): A systematic approach to identify potential failure modes within each subsystem, analyzing their effects on the overall system and determining the severity, probability, and detectability of each failure. This proactive approach allows for mitigation strategies to be implemented early on.
Hazard and Operability Study (HAZOP): A structured and systematic technique for identifying hazards and operational problems associated with a process or system. HAZOP uses guide words (e.g., "no," "more," "less") to explore deviations from the intended design and operation. This is especially critical in safety-critical oil and gas applications.
Simulation and Modeling: Utilizing computational models and simulations to test and validate the system design under various operating conditions and scenarios. This allows for early detection of performance issues and helps optimize the design before physical implementation.
Design Reviews: Formal meetings involving engineers, safety professionals, and project managers to discuss the design, identify potential issues, and agree upon corrective actions. Different levels of review may be implemented, from informal peer reviews to more formal gate reviews.

Chapter 2: Models

Several models are commonly used to represent and analyze system designs during the SDR process:

System Architecture Diagrams: These diagrams illustrate the overall structure of the system, including its major components, their interactions, and data flows. Common architectural patterns like client-server, microservices, and layered architectures are often employed and assessed during the SDR.
Data Flow Diagrams (DFDs): These diagrams visually represent the flow of data within the system, showing how data is transformed and processed by different components. DFDs are particularly useful for understanding data dependencies and identifying potential bottlenecks.
State Transition Diagrams: These diagrams illustrate the different states of a system and the transitions between them, triggered by events or inputs. This helps in understanding the system's behavior and potential vulnerabilities.
UML Diagrams: The Unified Modeling Language provides a range of diagrams for modeling various aspects of a system, including class diagrams, sequence diagrams, and activity diagrams. UML offers a standardized way to represent complex designs and facilitate communication among stakeholders.

Chapter 3: Software

Various software tools support the SDR process:

Computer-Aided Design (CAD) Software: For creating detailed 3D models of components and systems, aiding visualization and analysis of physical designs.
Simulation Software: Software packages like Aspen Plus, HYSYS, and others simulate the behavior of process systems, enabling the prediction of performance and safety under various conditions.
Model-Based Systems Engineering (MBSE) Tools: Tools like Cameo Systems Modeler or SysML plugins for other modeling tools aid in the creation and management of system models, ensuring traceability and consistency.
Project Management Software: Tools like MS Project or Primavera P6 help manage tasks, resources, and schedules associated with the SDR process.
Collaboration Platforms: Tools like Microsoft Teams or Slack enhance communication and information sharing among the SDR team members.

Chapter 4: Best Practices

Successful SDRs rely on several key best practices:

Clearly Defined Requirements: The SDR should start with a well-defined set of functional, performance, safety, and environmental requirements.
Experienced Review Team: The review team should include individuals with relevant expertise in various engineering disciplines and safety.
Structured Review Process: A clear and structured review process should be established and followed consistently.
Traceability: A clear traceability matrix should link requirements to design elements, ensuring all requirements are addressed.
Documentation: Comprehensive documentation of the review process, including findings, decisions, and corrective actions, is essential.
Iterative Approach: The SDR should be viewed as an iterative process, allowing for revisions and improvements based on the review findings.
Independent Verification and Validation (IV&V): Consider engaging an independent third party to verify and validate the design and ensure objectivity.

Chapter 5: Case Studies

(This section would contain specific examples of SDRs in oil and gas projects, detailing the challenges faced, the techniques used, and the outcomes. Due to the sensitivity of such information, placeholders are used below. Real-world examples would require specific project details which are not publicly available.)

Case Study 1: Subsea Production System: This case study would detail the SDR process for a complex subsea production system, highlighting the challenges of integrating diverse technologies and ensuring safety in a harsh environment. (Specific details of the project, challenges, and outcomes would be inserted here.)
Case Study 2: Offshore Platform Upgrade: This case study would illustrate an SDR conducted for upgrading an existing offshore platform, focusing on the challenges of managing risks during the modification process. (Specific details of the project, challenges, and outcomes would be inserted here.)
Case Study 3: Pipeline Integrity Management System: This case study would describe the SDR for a pipeline integrity management system, emphasizing the importance of safety and reliability in preventing pipeline failures. (Specific details of the project, challenges, and outcomes would be inserted here.)

These case studies would provide valuable insights into the practical application of SDRs in different contexts within the oil and gas industry, showcasing the benefits of a well-executed review process.