Project Managent - Power Point

transcript

PROJECT MANAGEMENT

Presentation at CEPT UniversityTo

Post Graduate Students

byJay Pandya, P.E.

January - April 2012

PROJECT MANAGEMENT

CONTENT• Introduction

• Definition

• History

• Lifecycle

• Stakeholders and Their Roles

• Organization

• Delivery Alternates

PROJECT MANAGEMENT

CONTENT contd.

• Project Control

• Work Breakdown Structure

• Scope Management

• Budget and Cost Control

• Schedule Control

• Quality Control

PROJECT MANAGEMENT

CONTENT contd.

• Change Orders Management

• Documents Management

• Software

• Project Reporting

• Project Governance

• Risk Management

• Success Factors

INTRODUCTION

It’s the Law

Project Management Law #1

“A Capital Project is rarely installed on time, or within budget and the Owner is not happy with Quality of Design and Construction”

Introduction

• 90% of projects do not meet time/cost/quality targets.

• Only 9% of large, 16% of medium and 28% of small company projects were completed on time, within budget and delivered measurable business and stakeholder benefits*.

• There are many reasons for such failures. *Standish Group Chaos Report, 1995

Introduction contd.

As per a Major Accounting Firm survey of 252 organizations, technology is not the most critical factor. Inadequate project management implementation constitutes 32% of project failures, lack of communication constitutes 20% and unfamiliarity with scope and complexity constitutes 17%.

Introduction contd.

Accordingly 69% of project failures are due to lack and/or improper implementation of project management methodologies

DEFINITION

Definition

• Project , defined:

A Project is a Unique Endeavor with –

Definition

Defined Scope of Work

Definition

Specific Start and End

Definition

Specific Start and End

Defined Budget

Definition contd.

• Management – Discipline of :– Planning– Organizing– Securing– Managing Resources

• Process of using a series of Objectives to achieve specific goals

Definition contd.

• Project Management Challenges– Competing Demands for –

ScopeBudgetTimeQualityRisk

– Stakeholders with Differing Needs and Expectations

HISTORY

It’s the Law

“A person that doesn’t learn from history is doomed to repeat it”

Project Management History

• The Great Pyramids of Giza – Completed – 2570 BC – Records show – Managers for each of the four faces – Responsible for overseeing their Completion (WBS)

• The Design is simple on the outside but complex on the inside

Project Management History contd.

• Great Wall of China – 208 BC – Qin Dynasty (221 BC – 206BC)

• Force was Organized into three Groups – Soldiers, Common People and Criminals

• Qin Shihuang ordered millions of people for this Project

• Taj Mahal – Construction took approximately 22 Years from 1631 to 1653.

• Approximately 22000 laborers and 1000 Elephants were used in construction of this monument.

• Eiffel Tower – Entrance Arch for the World’s Fair – Constructed during 1887 – 1889 and was Inaugurated on March 31, 1889.

• Approximately 300 workers were involved. • 18,038 pieces of Steel and 2.5 m rivets were

required.

• Gantt Charts – Developed by Henry Gantt 1917

• Worldwide Importance in 1920s • Used on the Hoover Dam Project Started in

1931 • Still being used today

• Hoover Dam – 726.4 ft high • Second tallest Dam in USA • Five Years to Build – 1931 to 1936 • 3,250,000 cft. Of Concrete was used

• Empire State Building – 102 Story Building • 1,250 ft. from Base to the Top Floor and

1472 ft. to the Antenna Spire • Excavation Started on January 22, 1930 • Steel and Masonry were Completed on

May 1, 1931 • Approx. 15 Months to erect.

• Project Management in Modern sense began in the 1950s. Time and Motion Study, Work Study, Industrial Engineering etc.

• American Association of Cost Engineers was formed in 1956 – Cost and Schedule Control

• Critical Path Method (CPM) was developed in 1957 – DuPont – Complex Process Plant – Turnaround – Shutdown and Restart

• Project Evaluation and Review Technique (PERT) – US Navy’s Polaris – 1958 – Polaris Mobile Submarine Launched Ballistic Missile Project

LIFECYCLE

It’s the Law

“The work expands to fill the time available ”

Lifecycle

• Program Study• Planning• Design / Engineering• Procurement• Construction• Commissioning & Closeout

Lifecycle contd.

• Program Study – – Define Owner Goals, needs– Scope Charter– Program Budget – Capital and Operating Costs– Program Schedule – Capital and Project Life– Financing Strategy– Risk Evaluation– Due Diligence – Go/No Go Decision

Lifecycle contd.

• Project Planning – – Scope Definition –

(Scope Statement at the highest level)– Concept Development– Project Delivery Strategy– Project Site & Infrastructure Plan

Lifecycle contd.

• Project Planning contd. –– Project Budget & Cash Flow Development– Develop Risk Management Strategy– Master Schedule Development– Financing Feasibility & Funding Resources– Regulatory review & Approval

COST Vs. TIMEOpportunities to control Cost and Schedule occur early in the project.

Project Time0%

Cash Flow

StrategicPlanning

TacticalImplementation/

Reactive Position

Complete

Lifecycle contd.

It’s the Law

“The more you plan, the luckier you get”

Lifecycle contd.

• Design - Engineering– Design Criteria & Standards– Schematic Design – Process Standardization– Constructability Review– Value Engineering

Lifecycle contd.

• Design – Engineering contd.– Identify Long Lead Items– Input of Operation & Maintenance– Develop Detailed Design & Construction

Documents– Scope Control as Design Develops (Scope

Creep)– Periodic Progress Reports – Budget, Schedule,

Progress, Problems and Recommended Solutions

Lifecycle contd.

• Procurement– Contracting Strategy – Insure Adequate Competition– Bid Process – RFP, Pre-Bid Meetings, Bid

Submittal, Bid Evaluation, Negotiations, Contract Award

– Subcontract Evaluation & Subcontractor Bonding

Lifecycle contd.

• Procurement contd.– Long Lead Items Procurement Management– Monitoring of Consultant Contracts– Contract Compliance– Pre – Construction Meeting

Lifecycle contd.

• Construction– Pre-Construction Meetings– Subcontract Execution Plans– Shop Drawings & Submittal Requirements– Shop Drawings & Fabrication Management– Construction Schedule Development /

Monitoring

Lifecycle contd.

• Construction contd.– Quality Control & Assurance– Safety Planning & Monitoring– Cost Control & Budget Monitoring– Contractors Coordination

Lifecycle contd.

• Commissioning and Closeout

– Commissioning Planning

– Punch List Development

– Pressure / Loop / Equipment Function Testing

– Turnover Requirements

(such as Maintenance Procedures , As Built

Drawings, Catalogues, Spare Parts and

Warranties).

Lifecycle contd.

• Commissioning & Closeout contd. – Project Document Archive

– Regulatory Agencies Approvals– Closeout Audit

STAKEHOLDERS AND THEIR ROLES

It’s the Law

“Too many cooks spoil the broth”

Stakeholders And Their Roles

• Stakeholders are those individuals and organizations that are actively involved in the Project and who influence the Project outcome

• Different Stakeholders have different Roles

Stakeholders And Their Roles

• Stakeholders include:– Owners– Operations & Maintenance– Financer– Specialty Consultants– Project Manager/Construction Manager– Architects– Engineers

• Stakeholders include contd.– Contractors– Subcontractors– Suppliers– Regulatory Agencies

Stakeholders And Their Roles contd.

• Each Stakeholder has Differing Needs and Expectations

Project Stakeholder Roles

Programing PlanningDesign &

Engineering Procurement Construction Commission &

Closeout

Owners X X X X X X Oper. & Maint X X X X

Financer X X Specialty

Consultants X X X X X X

PM / CM X X X X X Architects X X X X Engineers X X X X X

Contractors X X X Subcontractors X X

Suppliers X X X X Regulatory

Agencies X X X X

• Roles: – Owners

Program StudyPlanningDesign and EngineeringProcurementConstructionCommission and Closeout

Stakeholders And Their Roles contd.

Stakeholders And Their Roles Contd.

• Roles:– Operations and Maintenance

Design and EngineeringProcurementConstructionCommission and Closeout

• Roles: – Financer

Program StudyPlanning

• Roles: – Specialty Consultants

Program StudyPlanningDesign and EngineeringProcurementConstructionCommission and Closeout

• Roles:

– Project Manager/Construction Manager

Planning

Design and Engineering

Procurement

Construction

Commission and Closeout

• Roles: – Architects

Planning

Design and Engineering

Procurement

Construction

Commission and Closeout

• Roles: – Engineers

PlanningDesign and EngineeringProcurementConstructionCommission and Closeout

• Roles:– Contractors

ProcurementConstructionCommission and Closeout

• Roles: – Subcontractors

ConstructionCommission and Closeout

• Roles:– Suppliers

Design and EngineeringProcurementConstructionCommission and Closeout

• Roles:– Regulatory Agencies

PlanningDesign and EngineeringConstructionCommission and Closeout

• Managing Stakeholders' Expectations – a Challenge – Conflicting Interests

ORGANIZATION

Organization

Management Functions – • Planning• Organizing• Leadership• Control

To Accomplish Project Goals And Objectives

Organization Contd.

Create An Organization Structure Which Includes –• Policies• Procedures• Reporting Patterns• Communication Channels

Organization Contd.

Organizations Like Any Complex System Are Hierarchical – Composed Of Lower Level To Higher Order Structures – • Technical Core Level• Organizational Level• Institutional Level

Organization Contd.

The Most Appropriate Organization Structure Depends On – • Project Goals• Type Of Project• Environment/Culture

Organization Contd.

• Organizations – – Project Organizations are Normally Part Of Larger

Organizations– Company Or Project Based Organizations– Different Levels and Types Of Organization

Structures– Every Stakeholder – Part Of The Project

Organization Structure– Defined By Roles, Responsibility And Authority

Organization Contd.

• Factors to be Considered In Developing An Organization Structure – – Single Point Of Accountability and Authority– Command Structure– Reporting Relationships– Communication– Coordination Among Stakeholders

Organization Contd.

• Factors to be Considered In Developing An Organization Structure contd. –– Culture– Functional v. Matrix– Constant State Of Flux– Resource Allocation– Formal/Informal

Organization Contd.

• Organization Structure Types & Responsibilities–– Owner/ Company Level– Project Level– Design / Engineering Level– Procurement Level

Organization Contd.

• Organization Structure Types & Responsibilities contd. –– Construction/Site Office– Subcontractor– Commissioning– Closeout

Organization Contd.

• Organization Structure At Company Level – Project Management Finance Design/Engineering Procurement Personnel

Organization Contd.

• Organization Structure At Company Level – Information System Project Control Business Development

DELIVERY ALTERNATES

Delivery Alternatives

DESIGN ENGINEERING PROCUREMENT

COMMISSIONINGCONSTRUCTION

Traditional Delivery

Delivery Alternatives contd.

• Traditional Delivery– No Overlap Between Phases– Owner’s Representative:

CoordinationMonitoring

– Architect / Engineer: InspectionCompliance with Contract Documents

• Traditional Delivery– Single Prime Contractor with Subcontractors– Contracting Alternatives

Lump SumUnit PriceTime & Material

DESIGN

ENGINEERING

PROCUREMENT

COMMISSIONING

CONSTRUCTION

Fast Track Delivery

• Fast Track Delivery– Overlap Between Phases

Compresses TimeReduces Budget

– Owner as PM / CM or

– Consultant PM / CMAgentFixed Fee

• Fast Track Delivery– Multiple Prime Contractors with

Subcontractors

– Contracting AlternativesMultiple Lump SumGMPUnit PriceTime & Material

OWNER SCOPE & BUDGET DEVELPOMENT

DESIGN-BUILD CONTRACTOR

TRADITIONAL or FAST TRACK DELIVERY

Design Build Delivery

• Design-Build Delivery– Owner Issues One Contract Only– Minimum Involvement of Owner after Scope

Development – Design-Build Contractor Responsible for All

Subsequent Phases– Design Benefits from Contractor’s Expertise

PUBLIC OWNER

PRIVATE ORGANIZATION – SPVInvestor / Banker

Project Developer

Operations & Maintenance

FAST TRACK DELIVERY93

Public / Private Partnership Delivery (PPP)Partn

ership

• Public Private Partnership (PPP) – Brings The Public And Private Sectors Together

As Partners In a Contractual Agreement For A Defined Period (Normally Asset Life)Public Sector Pays For Those ServicesRight To Generate Revenue From The Project

– Objectives – Increase The Availability Of InfrastructureGreater Efficiency – Lower Cost and Higher Level Of Service

• PPP allows – – Private Financial Resources Available To Public

Sector– Private Sector Technical Expertise, Experience

And Efficiency Available To Public Sector– Project Related Risks Transferred To Private

SectorFinancialTechnicalOperational

• PPP Formation – – Private Sector Forms A Special Company Known As

Special Purpose Vehicle (SPV) To – DevelopBuild OperateMaintenance

– SPV Usually Made up Of – Investor/Banker/Landing InstitutionEngineering and Construction CompanyOperation And Maintenance Compny

• PPP– Benefits –

Project AccelerationCost Effective Design and ConstructionRisk And ResponsibilityUsers Rather Than Taxpayers Pay

– Potential Problems – Lack Of ControlsFear Of SPV Failing Or Not Meeting Service

Requirements

PROJECT CONTROL

It’s the Law

“If you fail to plan… you are planning to fail”

Project Control

DEVELOP A PLAN

IMPLEMENT THE PLAN

ANALYZE PERFORMANCE

FORECAST FUTURE PERFORMANCE

REPORT VARANCES

Project Control contd.

• Project Control: Keeping These Project Elements On Track – – Scope– Budget/Cost– Schedule– Financial

Project Control contd.

• Project Control Elements (Contd.) –– Quality– Risk– Change– Communication

• Project Control Begins With Planning And Ends With Project Closeout

WORK BREAKDOWN STRUCTURE

Work Breakdown Structure

• What it is:– Organized Hierarchical Representation Of The

Project Scope Broken-down Into Sufficient Detail To Support – BudgetingCost Estimating Cost ControlSchedule ControlAssignment of Roles And Responsibilities

Work Breakdown Structure contd.

• What it is contd.:– Method Of Reducing The Project Into Lower

Levels Of Greater Detail – Project Manager Should Have The Responsibility Of

Determining Number Of LevelsCore Team Should be Involved In Determining Number

Of LevelsNumber Of Levels Depend On The Size And

Complexity Of The Project

Work Breakdown Structure Contd.

• Work Breakdown Structure Development Approach – – Top-Down Approach –

Specify All Work Assignments To Complete The ProjectSpecify All Tasks To Complete Each AssignmentSubtasks/Activities To Complete Each TaskContinue This Process Until You Reach Adequate

Detail For The Entire Project

• Work Breakdown Structure Is A Backbone Of The Project Control Process

SCOPE MANAGEMENT

Scope Management

• Project Scope – – Work That Must Be Accomplished To Deliver A

Product With Specified Functions And Features – Main Points Of A Project Which Define

Projects’ Goals– All The Work And Only The Work Required To

Complete The Project SuccessfullyAccomplish Project ObjectivesAchieve The Goal

Scope Management contd.

• Project Scope Contd. –– Definition of Scope

Level of DetailClarity

– Technology IssuesExistence of Required TechnologyLicensing

– Site Issues

• Scope Management Process – – Project Initiation– Scope Planning– Scope Definition– Scope Verification– Scope Change Control

• Scope Management Process cont.– – Initiation Input –

Project DescriptionStrategic PlanSelection CriteriaHistorical Information

– Initiation Output – Charter – Project Description And Business Needs Being

AddressedIdentify The Project ManagerConstraints Assumptions

• Scope Management Process cont.– – Planning Input – Same As Initiation– Planning Output –

Scope Statement – Project Justification, Description, Deliverables, Objectives

Supporting DetailsAssumptionsScope Management Plan

• Scope Management Process cont.– – Scope Definition Input –

Output Received From Planning Statement Supporting Details, Assumptions and Management Plan

– Scope Definition Output –Work Breakdown StructureScope Statement Update

• Scope Management Process cont.– – Scope Verification Input –

Project StatusDocumentationWork Breakdown StructureScope StatementProject Plan

– Scope Verification Output – Formal Acceptance Of The Project

• Scope Management Process cont.– – Scope Change Control –

Scope CreepContingency ManagementCorrective ActionLessons LearnedAdjusted Baseline

BUDGET AND COST CONTROL

It’s the Law

“Anything can be changed… until there is no time (or $$) left to change anything”

Budget And Cost Control

• Cost Estimate – – Program Level – Conceptual– Utilize Work Breakdown Structure Levels– Schematics– Value Management

Budget And Cost Control contd.

• Cost Estimate contd. –– Design Development– Construction Documents Level (Bid Documents)– Change Order Estimates– Special Estimates

• Considerations In Cost Estimating –– Historical Data– Industry Standards– Lessons Learned – Economic Trends

• Budget Preparation – – Top Down Process– Responsibility for Budget Development– Budget Development Issues

Past ExperienceLevel of Scope DetailFactors ConsideredEmerging Technologies

– Budget and Reality

• Budget Preparation Contd. –– Sources Of Funds :

InternalExternal

– Availability from each SourceAmountTimingReliability

– Currency Exchange Rate Issues

• Budget Preparation Contd. –– Different Budget Levels– Utilize Work Breakdown Structure Levels – Line Item Budgets– Historical Data– Contingency

• Cost Control – – Cost Monitoring and Control – Bottom up

Process– Cost Management Plan– Cost Tracking– Comparison against The Baseline Estimate– Trending

• Cost Control contd. –– Cost Updates– Estimated Cost To Complete– Accounting / Cost Control Software – Cost Reporting– Corrective Actions

SCHEDULE CONTROL

It’s the Law

“Everything takes longer than you think”

Schedule Control

• Project Schedule – – Goal Definition vs. Timing– Define Major Scope Elements– High Order Schedule Considerations

Site AcquisitionConceptual Design DevelopmentProcurement IssuesConstruction PhaseCommissioning

Schedule Control contd.

• Scheduling Tools – – Activity List With Start And End Dates– Bar Chart Schedules– Arrow Diagramming Method (ADM)– Precedence Diagramming Method (PDM)– Line Of Balance(LOB)/Linear Scheduling

Method(LOM)– Location Based Scheduling

• Project Master Schedule

• Different Schedule Levels for Different Management Levels

• Design & Engineering Schedule

• Procurement Schedule

• Construction Schedule

• Commissioning & Closeout Schedule

• Integrated Project Schedule

• Base Line Schedule

• Pre-Bid Schedule

• Schedule Update

• Short Term Look-Ahead Schedules

• Detailed Schedule for Specific Project Area

Schedule Control contd.• Example: Conceptual Master Schedules

• Software

• Fundamental Requirements For Any Software

• Optional Requirements – Cost, Resource etc.

• Contract Requirements

• Implementation of Contract Requirements

It’s the Law

“The 80 / 20 Rule: the first 80% of the work takes 20% of the time, but the last 20% of the

work takes 80% of the time”

QUALITY CONTROL

It’s the Law

“You don’t get what you expect, you get what you inspect”

Quality Control contd.

• Quality Control – – Process Which Reviews All The Factors

Involved In The Project – Emphasis On – Elements Such As Controls, Job Performance, Integrity

Criteria, DocumentationCompetence Such As Knowledge, Experience,

Qualifications, SkillsSoft Elements Such As Organization Culture,

Motivation, Team Spirit, Confidence

– Inspect The Work Accomplished To Ensure Its Alignment With The Project Scope

• Quality Control by Contractor:– Quality Control Program/Manual– Materials Testing– Inspections– Reports & Documentation

• Quality Assurance by Owner:– Oversee Implementation Of Q/C Procedures– Inspection by Owner

You Get What You Inspect And Not What You Expect– Records review– Documentation review

• Collaboration Software

Quality Control

“There is never enough time to do it right…. but there is always time to do it over”

CHANGE ORDER MANAGEMENT

It’s the Law

“If project content is allowed to change freely, the rate of change will exceed the rate of progress ”

Change Order Management

• Change Order – – Work that is Added Or Deleted From The

Original Contract Scope Of Work Which Alters The Contract Amount Or Completion Date

– Common to Most Projects – Prime Reason for The Project Budget And Schedule Overrun

– Change Orders Can Only Be Mitigated, They Cannot Be Eliminated

Change Order Management contd.

• Common Reasons For Change Orders –– Increase/Alteration Of Owner’s Needs– Omissions/ Errors In Contract Documents– Changes In Regulatory Requirements– Differing Site Conditions– Differing Work Performance Conditions

• Change Order Process – – Change Identification– Change Request By Owner/AE/Contractor– Contract Document Review & Scope

Identification– Change Estimate By The Contractor/AE/PM/CM– Change Order Proposal – Cost Amount & Time– Proposal Review – Negotiations – Determination – Change Order Approval/Denial

• Change Order Monitoring –– Periodic Review Of Contract– Change Order Log Containing –

Approved Change OrdersOutstanding But Waiting To Be ApprovedProposals Submitted But No Other Action TakenChanges Identified And Proposals In ProgressPotential/Disputed Change Orders

• Change Order Control –– Detailed Review of Scope At The Planning Stage– Clearly Define The Scope During The Planning Stage To

Avoid Any Ambiguity– Involvement Of Operations And Maintenance

Personnel During The Scope Development And Design Development And Construction Documents Stages

– Ensure Coordination Of Various Disciplines During Design Development And Construction Documents Stage

• Change Order Control contd. –– Review Of Contract Requirements By The Legal As

well As Technical Personnel– A Thorough Investigation Of Subsurface And Site

Conditions AS Well As Any Constraints– Conduct Meetings with Regulatory Agencies,

Determine Their Requirements And Incorporate Them Into Contract Requirements

– Conduct Pre-Bid And Pre Construction Meetings With Contractors And Review Contract Requirements In Detail

• Change Order Control Contd. –– Select Financially Sound And Experienced

Contractor– Implement Contract Requirements Strictly With

Respect To :SubmittalsChange Order ProposalsCoordination MeetingsProgress Reports

DOCUMENTS MANAGEMENT

It’s the Law

“When the weight of the paperwork equals the weight of the aircraft, the plane is ready to fly”

Documents Management

• Documents Management – Record Keeping – – Backbone Of Successful Project Management Process– Tool For The Communication – Formal/Informal– During The Entire Project Period, All Stakeholders

Should Establish And Maintain Good, Accurate And Complete Records

– Easier To Maintain If Planned Properly With The Advancements In The Telecommunication And Photographic Industry

– Extremely Important Source For The Dispute Resolution

Documents Management contd.

• The Project Record Keeping System Should:– Identify The Documents Type– Utilize The Standard System– Establish Project Record Index For Quick

Document Retrieval – Preserve Records Daily For Each Project

Element

• The Project Record–Keeping System Should Normally Consist Of:– Correspondence– Project Execution Plan– Project Procedures Manual– Budget Documents– Project Baseline Schedule

• The Project Record–Keeping System Should Normally Consist Of:– Project Cost Estimate– Project Risk Assessment– Project Quality Control Plan– Project Procurement and Material Control Plan– Materials Purchase Orders and Delivery

Schedules

• The Project Record–Keeping System Should Normally Consist Of:– Engineering Contract– Value Engineering Analysis– Engineering Drawing Log– Engineering Services Invoices– Project Cost and Schedule Reports

• The Project Record–Keeping System Should Normally Consist Of:– Constructability Reviews– ROW Logs– Construction and/or Letters of Intent and Term

Sheets– Construction Contracts– Subcontracts

• The Project Record–Keeping System Should Normally Consist Of:– Project Safety Plan– Project Security Plan– Construction Contract Invoices– Subcontractor Invoices– Meeting Minutes

• The Project Record–Keeping System Should Normally Consist Of:– Daily Field Reports– Material Invoices– Change Orders– Commissioning Logs– Closeout And Warranty Reports

SOFTWARE

It’s the Law

“GIGO”

Software

• Major Categories – – Engineering– Procurement– Planning And Control– Construction– Collaboration

Software

• Planning And Control – – Cost Engineering– Finance & Accounting– Scheduling– Resource Control– Bulk Material

Software

• Project Control Software Examples– Prima Vera– MS Project– ARTEMIS– Prologue

PROJECT REPORTING

It’s the Law

“You can fool all of the people some of the time, and you can fool some of the people all

of the time, but you can’t fool all of the people all of the time”

Project Reporting

• Project Reporting Purpose – – Status – Communicate Progress Against Plan And

Highlight Any Variances– Coordination – Assist All levels Of Management

For Coordination– Corrective Action – Timely Information Could

Assist The Management In Taking Corrective Action And Avoid Disaster

Project Reporting contd.

• Status Reports – – ALL Management Levels Within Management– Level Of Detail And Frequencies Differ Depending

On The Management Level– Summary Reports And Less Frequent For The Top

Management– Action Oriented More Frequent (Weekly Or Daily)

And Detailed For The Team Members

• Status Reports Should Address – – Where Is The Project – Work Accomplished To

Date And During The Last Period– Where Should The Project Be – Compare The

Performance Against The Plan– How Do You Plan To Get There – Identification Of

Problem Areas And Recommended Corrective Actions

• Status Reports Should Address Contd. –– When Do You Plan To Get There – Schedule Of

Corrective Actions– Assistance Needed – Financial, Manpower,

Equipment or Any Other Assistance Required To Take Corrective Actions

– Overall Project – When And At What Cost

• Project Status Report Should Also Address –– Overall Project– Engineering– Procurement– Construction– Commissioning– Closeout

• Information Contained In The Project Status Report – – Project Identification– Financial – Approved Budget, Current Cost Paid

And Committed To Date, Estimated Cost to Complete And Total Estimated Cost

– Schedule – Major Milestone Information, Original And Current Approved, Projected Schedule Completion,

• Information Contained In The Project Status Report Contd. –– Progress Since Last Period And Major

Accomplishments– Approved Scope Changes– Issues– Plans For The Next Period– Assistance Needed– Lessons Learned

PROJECT GOVERNANCE

Project Governance

• Project Goals– Owner defined– Realistic– Adequately Communicated

• Accountability– Clear Definition of Roles and Responsibilities– Buy-in by Stakeholders

Project Governance contd.

• Stakeholders– Stakeholder Goals align with Project Goals– Appropriate Policies & Procedures– Project Control Tools

• Relationships– Defined by Responsibilities– Coordination of Contract Documents

Project Governance contd.

• Planning– Organization (Command Structure)– Resource Allocation– Coordination among Stakeholders– Government Regulations

• Monitoring– Design Stages & Procurement– Construction– Budget / Schedule

RISK MANAGEMENT

It’s the Law

“If you don’t attack the risks, the risks will attack you”

Risk Management

• Identify Project Risk

• Assess Project Risk

• Mitigate Project Risk

Risk Management contd.

• Identify Risks– Planning Risks

Technical Feasibility of ConceptInsufficient Scope DefinitionAggressive Project ScheduleInaccurate / Overly Optimistic BudgetingFailure to account for Regulatory Requirements

• Identify Risks contd.– Design & Engineering Risks

Coordination Among Engineering DisciplinesInsufficient Input from Operations & MaintenanceScope CreepConstructabilityControl of Design Budget & Schedule

• Identify Risks contd.– Procurement Risks

Transparency of Contractor Selection ProcessMisevaluation of Prime or Sub ContractorsProper Contract Formation & ElementsLong Lead Item Procurement Issues

• Identify Risks contd.– Construction Risks

Improper Mobilization Planning & ExecutionDiffering Site ConditionsAvailability of Skilled LaborSpecialized Construction Equipment IssuesInadequate Coordination of the TradesQuality Assurance / ControlChange Order Management

• Identify Risks contd.– Construction Risks contd.

Rite of Way IssuesCommunity RelationsSafety ManagementSubcontractor / Supplier IssuesGrowth of Budget & ScheduleCommunication Issues

• Identify Risks contd.– Commissioning & Closeout Risks

Adequacy of Commissioning PlanCommissioning Communication & CoordinationTimely & Accurate Development of Punch ListsAvailability of Specialized Commissioning CrewsContamination of Equipment During ConstructionIncomplete Punch List Execution Inaccurate As-Built Drawings & Process PlansIncomplete Documentation of Installed

Equipment

• Assess Project Risks– Probability of Risk Occurrence– Evaluate Risk Impact on:

BudgetScheduleFunctionalityRegulatory ReviewRelationships

– Prioritize Risks for Resource Allocation

• Mitigate Project Risks– Obtain Appropriate & Adequate Insurance– Develop Robust Information Flow

Comprehensive Reporting: Daily, Weekly & Monthly

Institutionalize Risk Awareness & Discussion

– Monitor Costs for Abnormal Trends

• Mitigate Project Risks– Keep Schedules Current; Identify Anomalies– Develop Quality Control Systems– Monitor Safety Performance– Incentive Plans – Owner & Contractor Personnel– Proactive vs. Reactive

• Mitigate Project Risks– Co-ordination during Design and Construction– Top Management Commitment– Competent Staff– Line Management Commitment– Contract Requirements Implementation

• Conclusions– Pro-active rather than Reactive– Forward Looking– Open Communication

It’s the Law

“Project Risk can never be eliminated, it can only be mitigated”

SUCCESS FACTORS

It’s the Law

“Success depends on People, Procedures & Tools”

Success Factors

• Functionality

• Quality

• Budget

• Schedule

• No Residual Problems – Disputes

Functionality

• Implies performance consistent with Original Concept

• Requires complete and accurate communication among the Project Participants

Functionality• Performance consistent with Original Concept

How the Project Manager scoped

the Project

How the Engineer designed it

How the Procurement

Dept. ordered it

How the Contractor installed it

Functionality

What the Owner actually wanted

Functionality

• Communication:– Clear– Concise– Meets Participants’/Stakeholders’

expectations– Properly Documented

Assuring Project Success

• Organization & PM Team – Parent Organization / Culture– Customer Organization / Commitment– Qualification / Dedication of Team Members

• Planning– Goal Definition / Concept Development– Project Delivery Strategy– Project Resource Plan

Assuring Project Success

• Implementation

• Monitoring / Updating (all of above)

It’s the Law

“Things always work out in the end…

…If they haven’t worked out yet, you’re not at the end”