Produced by:

KPI’s for Measuring& Controlling STO Projects

E.J. (Ted) ListerLister Management Inc.

• Project Controls / Project Management

• Definitive Definitions

• The 4+ Key Performance Indicators

• Measuring Performance

• Trending, Forecasting

• Questions

Agenda

Slide 3

Project Controls / Project Management

Overview…

• You must be able to measure, in real-time, the status of your project based on KPI’s and their set Targets

• Projects need to be both controlled and managed

• It’s important to understand what you can control, and what you cannot; what you can manage, and what you cannot

• A method of measuring needs to be established for both controlling and managing the project

Slide 4

Project Controls / Project Management

Overview – cont’d…

• Establish Project Controls at project kick-offo Work-list / Work-scopeo Budgeto What-if scenarios / Risk Managemento KPI’s and Targets

• Project Management begins at Work-list cut-offo Work Management (Direct)o Resource Management (Indirect)

Slide 5

Definitive Definitions

• Planned Valueo Estimate of Wrench-hours for an activity

• Earned Valueo % complete of a planned activity based on field status

• Actual Valueo Cost measurement; also used to measure worker performance

• Longest Jobo Zero-float, determines the duration of the outageo Not to be confused with critical path, which accounts for risk

Slide 6

Definitive Definitions – cont’d

• S-Curveo Chart of values distributed along wrench-hour/time x y axis

• Baselineo A snapshot of the initial plan/schedule before feed-out

• Performanceo Earned vs. Planned, Actual vs. Earned, Actual vs. Planned

• What-if Scenarioso Leveling a programmed plan to determine the best case

scenario based on cost, schedule duration, and wrench-hours

Slide 7

The 4+ Key Performance Indicators

In Order of Magnitude…

1. Safety, Health & Environment

2. Worker Performance Wrench-time (76.7% direct in a 10 hour shift) QA/QC (rework)

3. Schedule (earned vs. planned)

4. Cost (actual vs. planned) Direct Indirect

Slide 8

The 4+ Key Performance IndicatorsSetting Key Performance Targets…

1. Safety, Health & Environment = +5000 points

2. Worker Performance Wrench-time (Direct) = 75% QA/QC = 0 Rework

3. Schedule (Feed-in – Feed-out) = 31 Days

4. Cost = $41.2M Direct (Wrench-hours x $45.00/h) = $18.7M Indirect (115% of Direct) = $21.5M

Planning, Pre-Work, Post, Contingency = $1.5M

Slide 9

The 4+ Key Performance Indicators

Safety, Health & Environment…

• Set positive targets for SH&Eo Earn points each shift for 0 incidents (150 points)o Earn points for ProAct card reporting (150 points)o Earn points for audits (200 points)o Lose points for recordable incidents o A lost-time incident takes you into the

negative with no chance of recoveryo Incentives are based on positive numbers

Slide 10

The 4+ Key Performance Indicators

Worker Performance…

• Set realistic direct wrench-time for worker performanceo No more than 75%o Remember, once you determine direct wrench-hours all indirect

resources and logistics are based on this numbero If you don’t use strategic planning to support this number your

chances of achieving this target will be diminishedo Use productivity factors based on: season, location, worker

experience, resource availability (inspectors, cranes, etc.)

Slide 11

The 4+ Key Performance Indicators

Schedule…

• Establish a schedule in your planning software with a clearly defined WBS (Work Breakdown Structure) and Phaseo The WBS is a vertical hierarchy of physical locationso The Phase is a horizontal section of work types

• Use What-if Scenarios to determine the longest job (series of planned activities with no float)

• Control the longest job; manage the remaining tasks

Slide 12

The 4+ Key Performance Indicators

Cost…

• The cost is based on Work-scope + Indirects + Contingency = Budget

• Costs can only be controlled through Work-scope changes

• Costs are managed, not controlled, through performance

• Costs need to be measurable based on direct and indirect; found and added; WBS and Phase

Slide 13

Measuring Performance

History Focus on Work Ahead

Current Day

STA

TU

S =

% C

OM

PL

ET

E o

r M

HR

S

100%Or Total Planned Man-hours

OriginalMan-hour

Overrun

OriginalBaselineScheduledMan-hours

ScheduleVariance New

ScheduledMan-hours

New schedule affected by activities not completed as per schedule plus added and extra work

Schedule Slippage

EarnedMan-hours

Original Target New Target

TIME

Project Performance S-Curve…

• Baseline Planned

• Earned Value - WP

• Actual Value - $

• Found/Added Work

• Historical Trend

• Forecast

Slide 14

Measuring Performance

Baseline…

• Save your project as a baseline comparative project just prior to feed-out

• Use the baseline for variance reporting and historical reference

Slide 15

Measuring Performance

Updating…

• It imperative that field status reporting is done prior to the end of each shift for each scheduled activity

• The programmer will update the project in the planning software as a percentage complete (earned value)

• Actual hours can be tracked in the planning software, or accounting software, from timesheets

• The programmer must advance the project to the current status date and time

Slide 16

Measuring Performance

Updating – cont’d…

• No uncompleted work can ever appear behind the status date line

• Use earned value % complete; do not try to capture actual start and finish times

Slide 17

Trending and Forecasting

Using S-Curve Data…

• Trending performance should begin between day 3 – 5 to establish data to forecast probable target completions

• Use trending and forecasting to control the project Work-scope

Slide 18

Trending and Forecasting

Reporting…

• A daily one-page report should be generated to illustrate the status of each KPI

• Additional information can also be included:o New Critical, All Criticalo Found Work, New Work, Delayso Weather, POB, etc.

Produced by:

E.J. (Ted) ListerLister Management Inc.

akaboreese@hotmail.com