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30% 60% 90% IFC EngineeringWhat is the Project Progress

Prepared by:Trevor WattProject Controls SpecialistEPCM Solutions

Using P6 to DecipherSession ID#: 15412

Introduction

Rules of Credit

■ Document Count▪ Very accurate during drawing phase▪ Lacks ability to progress 3d model / calculations▪ Hard to identify analysis and design changes

— They don’t affect the document count

■ Review package 30 – 60 – 90 – IFC▪ Inaccurate▪ Leaves a lot of interpretation to the discipline lead engineers▪ Hard to identify change

Rules of Credit

■ Activity Based▪ Very Accurate through all phases▪ Easily identifies changes and slippage in schedule▪ Provides more insight to resource loading▪ Can provide detailed historical information for future estimates▪ Can be used for “What If” scenarios▪ Clear defined information as to what will be provided and

expected in each review package▪ Can provide cost, hour and schedule alignment.

What is required?

■ Level of completion of review packages▪ A document specifying what deliverables are to be included, and

at what level are they to be completed too.

■ WBS that aligns with the Level of completion document▪ Each deliverable has its own deliverable number▪ This forms the bottom level of the WBS.▪ The deliverable will be broken down further via activities

■ CBS which mimics the WBS

Level of Completion Document

■ Define the Detailed Engineering review stage gates

■ Define the required disciplines to complete the package

■ Define the Deliverables that are to be part of the complete package▪ Define the level of completion of each deliverable for each

review package

Defining the WBS

■ After the deliverables are defined a coding structure and system needs to be derived

■ Typical structure for an engineering project would look like so:▪ Project / Phase / Area / Sub Area / CWP Package / EWP

Package / Discipline / Deliverable / Activity▪ Project to CWP section should be defined by owner / client▪ The EWP to Activity should be defined by Engineering company▪ Next the codes should be defined for each level of the skeleton

structure.▪ Should be consistent through the project right through till the

end of construction.

WBS / CBS alignment

■ In the previous example the CBS or cost code used in the financial system ends up as:▪ 4.311.900.100▪ 4 – Current Project (PS4) added to the CBS but is basically the

project schedule name, so not included in project WBS▪ 3 – Detailed Design▪ 1 – Area (W)▪ 1 – Package▪ 190 – Process▪ 300 – Control Narrative

P6 Typical Settings

■ Fixed Durations and Units■ Auto compute Actuals – Off■ Calculate cost from Units – Off■ Physical % Complete■ Budgeted Values with planned dates■ Recalculate Actual units and cost when duration % changes –

Off■ Link Actual and Actual This period Units and Cost■ P6 V7 requires costs to be loaded for performance %

complete to calculate.■ Activity % complete should be used under Earned Value in

the Admin preferences.

Planning

■ After the structure is defined and entered within the schedule activities can then be created▪ The most important ones to identify first are the outside client

deliverables that will be required from the client.▪ Then the internal discipline to discipline deliverables.▪ These should all be presented as milestones within the

schedule.

■ Each discipline lead should be brought in to help define/plan there own individual scope.▪ I have seen mass planning sessions, and these do not work.▪ Start with each discipline individually then work with the group

as whole to define interdisciplinary logic.

Planning

■ Define the activities within each WBS or deliverable bucket▪ Define durations and Budgeted labour units for each activity▪ Most logic within a particular bucket is FS▪ Try to keep activities within a 10 day duration.▪ And keep in mind the milestones deliverables that were defined.

■ Define the logic between the buckets

■ Define the logic from the outside deliverables client or external discipline deliverable.

■ Review as a project team.

Planning

■ Check resource curves to make sure project is feasible.■ Level as necessary.■ Check early and late curves.■ Add in any schedule risk required.■ Verify the critical path.

▪ In engineering projects, the critical path can easily be defined usually by the client and inter-discipline deliverables.

▪ If one deliverable isn’t met the particular discipline usually can’t get much traction on the beginning of their design.

▪ Eg. Oil and gas pipeline detailed design— Transients to stress to structural. (could be multiple iterations)

Loading Budgets

■ Once the schedule is fully activity loaded▪ Budgets can be loaded via an excel import▪ Important that all resources have calculate cost from units

turned off.▪ Export Project to excel selecting Resource Assignments check

box▪ Select Budgeted Units and Budgeted Cost▪ Multiply your units by your wage rate within excel, and re-import

to P6.

Place holders for Actuals

■ Since we are not coding to the activity level we need to add in place holders for uploading the actuals from the financial system.▪ Can be WBS summary or LOE activity type.▪ Activtity ID must match the CBS code from the cost system.▪ Assign applicable resource with no budgeted units or cost.▪ One is required for each WBS bucket.

Progressing the schedule

■ What questions to ask?▪ Actual Start?▪ Actual Finish?▪ Remaining Labour units▪ Remaining Duration

■ Make a global change to calculate Physical % complete, The calculation is as below, but UDF must be used to represent this caluclation▪ Physical % complete = (budget – remaining) / budget

■ Essentially the above formula will calculate the earned labourunits.

Uploading Actuals

■ Export to excel using resource assignments.▪ Select Actual Units and Actual Costs columns▪ Delete all activities that do not have an activity ID that is a CBS

code.▪ Use Vlookup or some other format to populate excel sheet▪ Reimport into P6.

What info does all this give you?

■ With this setup you now can apply all EV columns to your layout.

■ The progress is measured at the individual activity level to provide overall progress.

■ Full resource curves and leveling are available if required.■ Cashflows can be represented in either excel or P6.■ Changes are easily identified by the team during progress

meetings.■ Most importantly you will not over claim progress.

Rolled up Earned Value from P6

Detailed view at WBS Level

Stacked Histogram from P6

Over Allocation represented in P6

S-Curve generated from P6 dump into Excel

Performance Indices from P6 Dump into Excel

Earned Schedule from P6 Dump into Excel

Variances from P6 Dump into Excel

Summation

■ There are multiple ways to progress engineering, but the only unit that really matters is hours.

■ Identification of changes is crucial to success▪ This is achieved by a detailed schedule

■ With a proper set-up, execution and management of resources becomes easier and more accurate

■ The bottom line is what ever happens during the engineering phase, can affect construction two fold.

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