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Modular Construction Conference 2012
1. Adopting Effective Project Controls Strategies
Dr. Anamaria Popescu, PE,PSP,PMP
McLachlan Lister-Hill International Australia
www.hillintl.com
2. My Profile
• Associate Director-McLL in Brisbane
• Project Auditing Services
• Project Controls Implementation
• Construction Claims Expertise
• Forensic Schedule Analysis
• Joined Hill International in 2011
• Consulting to the Oil and Gas Industry
• University of Texas at Austin
• Civil Engineering/CEPM Program
• PhD in Schedule Analysis
• PM at Enron
4. Project Characteristics
• Coalbed Methane Natural Gas Drilling Program
• Gas Field: 1.9 Trillion Cubic Feet of Gas
• 13 Year Period
• 1000 Wells
• 2+ Billion Investment ($US)
• Environmental Sensitive Area
• Minimize Environmental Impact
• Use Existing Infrastructure
5. Situation
• Project in Feasibility Phase
• No Project Controls People
• No Cost Control or
Schedule Existed
• Wanted a Schedule to
“Pass Through” Gate
Review
• Wanted it in Two Weeks
• Did Not Have a Software
Platform
• “Power Point” as the
Panacea
• Huge Political Pressures
for Success
6. Our Scope…to Develop:
• A standard WBS for the project
• An Integrated Schedule
• Re-Alignment of Cost Estimate with WBS
• Risk Allocation/Contingency Management
• Earned Value System
• The basis for the cost and schedule baseline
7. Step 1: Work Breakdown Structure Development
FIRST THINGS FIRST…..What is a WBS
Anyway?
• Grouping of Project Elements
• Defines the Total Scope of Work
• Each Level More Detailed than Previous
.
8. WBS Development Benefits
• Scope Capture Check
• Promotes Consistency of Cost and Schedule Data
• Rollup for Reporting Requirements
• Cost Breakdown Structure Framework
• Earned Value is Actually Possible!
$ $ $
9. WBS Development: What We Did…
• Got a Plotter (A BIG One!)
• Became Visio Experts
• Had One-on-One Meetings…Lots of Them!
• WBS Wallpaper
• Captive Audience
• Comment Period of One Week
• Graffiti Allowed!
• Custom Pen Colors!
• True Integration Effort
• Transparency in SOW
• “Light Bulbs” Went Off
• Made Changes…Replotted…Rehung
• Not Very “Green” but Very Vital
10. WBS Requirements & Questions for Consideration
• Number of levels in the WBS
• Define Each Level
• Schedule Activities Captured at Level X
• Costs Captured at Level X
• Numbering Structure: Alpha/Numeric
Critical that the Team “Buys-In” and “Owns” the WBS
11. WBS Structure for Project
Level 1
Project
Level 2
Delivery Area
Level 3
Facility Package
Level 4
Facility Type/Rig No.
Level 5
Specific Facility/Well Name
Level 6
Phase
Level 7
Discipline
14. Step 2a: OBS Development
• Definition: The identification of project participants and
their hierarchical relationship.
• Assigned in P6 Directly
15. Step 2b: OBS Assignment
• Intersection of OBS and WBS Creates:
16. Step 3: Activity Development
Activity Elements
Calendar
Interface Relation-
Points ships
Activity
Durations
Codes
(3)
WBS No.
17. Activity Development: What We Did….
• Set Up Excel Templates • 3 Durations
• Emailed to Team Leads • Import into P6
• One Tab per WBS Element • “Live” Logic Ties
• Team Brainstorming Sessions • Schedule Projected on
• No Dates! Screen
19. Step 4: Schedule Integrity Check
• Assess through
Metrics
• Don’t Skip!
• CP should not be
published
• P6 Schedule
Report or Fuse
20. Step 5: Critical Path Review
• Plotted Out both CP and NCP
• Grouped by Top 10 Float Paths (Top 10 Wells)
• Graphically Could See the Critical Path
• Took Up Four Walls of Conference Room- “BAG”
• Each Team Had a Different Colored Pen
• Marked Up and Changed Logic Ties
• Had Collaborative Discussions about Sequencing
• Made Changes “Live” in P6
• Re-plotted Top 3 Paths
• Management Accepted “The Answer”
• Not Thrilled but Convinced!
22. Step 6: Incorporating Risk into the Schedule
• Interactive workshop with various disciplines to
come up with the risks.
• Develop a Risk Register
• Risk Matrix- Likelihood of Occurrence vs. Impact
• Running a risk analysis on the baseline
schedule in Pertmaster
• Probability of achieving expected completion
date
• Schedule Contingency Management-Buffers
30. Step 6: Contingency Management
• CP shows only the early date for project completion.
• The next step will be to determine the late dates for project
completion
• The project will have two completion dates:
• a finish date without contingency (the early date)
• a finish date with contingency (the late date).
• Paradigm shift for most companies-usually mange to only one
finish date & no contingency
30
31. Step 6: Contingency Boxes
• This step is based on the organizational structure of
the project and the company.
• The person with authority to distribute a portion of the
project float needs to be assigned a contingency box.
• These boxes are represented as activities in the
schedule-tied in series
• The schedule will now have two finish dates:
• the early target finish date, preceding the contingency
• the late target finish date that succeeds the boxes.
31
34. Step 6: Percentage Allocation
• Distribute the contingency to each box based on the
amount of authority the three team leaders have on
the project.
• Percentage distributed to each box.
• DOES NOT HAVE TO BE EQUALLY
APPORTIONED.
• Formal Float Distribution Process-Float is not
“Scattered” throughout
34
35. Step 6: Percentage Allocation
15% Contingency
Total Project
Duration=300 Days
Contingency:45 Days
PM: 60%
PGM: 30%
PD: 10%
“Drop Dead Date”
35
38. Step 7: Schedule Basis
• Baseline AFTER critical path acceptance
• Key step that is overlooked
• Assumptions/Key decisions recorded
• Provides validity to the schedule itself
• Provides an understanding of team’s thought process
• Allows team members to resist scrutiny/criticism
• Basis for change management
• Excusable Delay: Conditions Different than Assumptions
41. Value
• Standardization of activities
• Great Communication Tool: Everyone Spoke the Same Language
• Integrated Software Platform: Primavera Enterprise
• Schedule allowed for realistic and accurate well count by year
• Contractor Payments-Virtually Eliminated Disputes
• No management surprises!!!
• Benchmarking – Setting standards for other drilling programs
• Record actual times and adjusted future projections accordingly
• Accuracy increased year by year
42. Conclusions
• Understand what the Client Needs vs.Wants (two very different
things in this case)
• Don’t expect them to know terminology and benefits…educate
them (Project Controls 101 Class)
• Hands-On Development of Project Schedule (face-time is key)
• Print out items for discussion and hunt people down….no passive
emails..if you are an introvert, get over it! (also a six foot long
schedule is hard to read on a screen)
• Let the teams mark stuff up, nothing is set in stone!!!!
• Have many integration meetings…live in a conference room, I
did…
• Schedule Review Meetings should have strict time
management…no more than 1 hour at a time…you will lose people
and they never will come back! Respect their time and they will
respect yours…..
43. Conclusions
• Have the team explain their scope and process on a “generic”
project first
• Get them thinking Logic not Dates… they can’t cheat the schedule
that way
• Set up different report templates to match their needs so they will
actually use it….what a concept!
• Allow suppliers, engineering firms, etc. to attend the progress
meetings and comment on the schedule… don’t worry about the
contractual hierarchy
• Have a transition plan and implement it before you leave
• Momentum is Key….
• ….losing it can derail all of your efforts