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Fel and Feed

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FEL AND FEED

Definition

Front-End Loading (FEL) is the process for conceptual development of


processing industry projects. Example of processing industry are
petrochemical, refining, pharmaceutical. Front-End Loading is also referred
to as Pre-Project Planning (PPP) or Front-End Engineering Design
(FEED).Overview

Expanding on the above definition, Front-End Loading refers to including robust


planning and design early in a project's lifecycle (i.e., the "Front End" of a project), at a
time when the ability to influence changes in design is relatively high and the cost to
make those changes is relatively low. It typically applies to industries with highly capital
intensive, long lifecycle projects (i.e., hundreds of millions or billions of dollars over
several years before any revenue is produced). Though it often adds a small amount of
time and cost to the early portion of a project, these costs are minor compared to the
alternative of the costs and effort required to make changes at a later stage in the
project.

It also typically uses a Stage-Gate process, whereby a project must pass through
formal Gates at well defined milestones within the project's lifecycle before receiving
funding to proceed to the next Stage of work.

FEL Stages

It is common industry practice to divide Front-End Loading activities into three stages:
FEL-1, FEL-2, and FEL-3. For each stage, typical deliverables are listed below.

FEL-1 FEL-2 FEL-3

Purchase Ready Major


Preliminary
Equipment Specifications
Equipment Design
Material Definitive Estimate
Preliminary Layout
Balance Project Execution Plan
Preliminary
Energy Balance Preliminary 3D Model
Schedule
Electrical Equipment List
Project Charter Line List
Preliminary
Estimate
Instrument Index

The very front end of every large design project is critical to the long-term success or
failure of the plant. While the business plan identifies the economic opportunity, the
Front End Engineering Design (FEED) will establish the set of process operating
conditions and equipment to achieve the level of reliability, efficiency, and safety
required. This design phase sets the direction for the rest of the project. Because it is
so critical to the future success or failure of the overall objectives, we feel our clients
make the wise choice by purchasing proven licensed processes or selecting a firm like
ours which specializes in process design engineering.

When the design basis is complete, we typically have the following information defined:
Raw material specifications
Plant capacity requirements
Product specifications
Critical plant operating parameters
Available utilities specifications
Individual unit operations performance requirements
Process regulatory requirements
All other operating goals and constraints desired by the plant
owners/operators/engineers

Front End Engineering and Design (FEED) is a broad-encompassing term that includes
all engineering design activities for your project. By breaking these activities out and
executing them earlier in the project, you can take advantage of better scope definition
to reduce risk, and therefore the cost, associated with your project.

Once the FEED Study is completed, you can then decide on a strategy for
implementing a project. You might decide to execute your project as a typical capital
investment project, or you may consider the option of including the project as a
component of a Technical Support Agreement.

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