IRJET- Critical Chain Project Management in Construction Projects
Is it MoC or CM
1. Is it really just semantics?
CHANGE MANAGEMENT
VS
MANAGEMENT OF CHANGE
2. 14 September 2015 2G. SCOTT GILLIS, B. TECH
• Education: Remote Sensing & Aerial Photography
(NSLSI)
• East Coast Offshore – Ice & Weather Observation
• Beaufort Sea / Grand Banks – Ice Management
• Atlantic Canada – Aerial Photography
• Hibernia Project – Mechanical Outfitting (GBS)
• Education: Bachelor of Technology (MUN)
• Terra Nova Project – Loss Control 3D design
• Terra Nova Operations – Management of
Change
• Lower Churchill Project – Change Management
& Technical Interface Management
A LITTLE ABOUT MYSELF
3. 14 September 2015 3G. SCOTT GILLIS, B. TECH
Nalcor Energy’s scope:
• 824 MW hydroelectric development at Muskrat Falls (Labrador, near Happy
Valley-Goose Bay)
• two 315 kilovolt High Voltage alternating current (HVac) transmission lines
between Muskrat Falls & Churchill Falls (Labrador Transmission Assets)
• 1,100 km long High Voltage direct current (HVdc) transmission line between
Muskrat Falls & Soldiers Pond near St. John’s including 35 km Strait of Belle
Isle Crossing subsea crossing (Labrador-Island Transmission Link)
Emera NL’s scope (Maritime Link):
• 170 km 500 MW capacity subsea link to the North American grid
• 300 kms of 230 kV HVac transmission line along new and existing corridors
on the island of Newfoundland
A LITTLE ABOUT MY CURRENT PROJECT
6. 14 September 2015 6G. SCOTT GILLIS, B. TECH
• Change Management versus Management of Change
A. Is there a difference?
B. If so is it important to understand?
C. Does it impact our requirements?
D. Does it impact how we manage?
E. Does it impact what we report?
MY TOPIC TO-DAY
7. 14 September 2015 7G. SCOTT GILLIS, B. TECH
• Before addressing the difference between CM and MoC let’s consider
a comment on the term Change Management by itself…
• ‘The phrase "change management" can mean many things to many
different people. Some may see it as simply communications and
training. Others may see it from an IT perspective as the process for
managing hardware and software version control. In the project
management world, the phrase has sometimes been used to describe
the steps for addressing a change in schedule or scope. And, some in
the change management community have entertained other words as
a label for managing the people side of change.’
Source PROSCI Change Management Learning Centre
SO WHAT EXACTLY IS CHANGE MANAGEMENT?
8. 14 September 2015 8G. SCOTT GILLIS, B. TECH
• When it comes to researching the subject, the Internet is
flooded with material focused firstly on organisational change
management and secondly on IT related change management.
• However, from the perspective of capital projects, which is
where I draw my experience from, I found a definition that works
for me and which I have adopted:
“The process of incorporating a balanced change culture of
recognition, planning, and evaluation […] in an organization
to effectively manage project changes.”
Source: Construction Industry Institute
BUT WHAT DOES CM MEAN TO US?
9. 14 September 2015 9G. SCOTT GILLIS, B. TECH
• The 1950s marked the beginning of the modern project management era.
• Traditionally, project management includes a number of elements: four to five
process groups, and a control system. Regardless of the methodology or
terminology used, the same basic project management processes will be
used. Major process groups generally include:
• Initiation
• Planning or design
• Production or execution
• Monitoring and controlling
• Closing
• Monitoring and controlling includes:
• “… Influencing the factors that could circumvent integrated change control so only
approved changes are implemented.”
Source: The Project Managers Desk Reference…
WHEN & WHERE DID IT COME FROM
10. 14 September 2015 10G. SCOTT GILLIS, B. TECH
• Change Management is:
Based in & a cornerstone of Project Management
Focused on controlling scope and schedule (and resulting cost
impacts) throughout the project
A means to manage scope creep
• Four key reasons for cost overruns in projects are:
Inaccurate estimates
Unrealistic / incomplete designs
Poor planning
Changes in scope [which may result from these and other factors]
FUNDAMENTALS OF CHANGE MANAGEMENT
11. 14 September 2015 11G. SCOTT GILLIS, B. TECH
• “A change in one of the triple constraints of a project has an
impact on the other two. The key is to find balance between the
need to manage the scope of the project against the agreed
requirements, cost & schedule.”
Source: Simple steps to manage your project changes
OBJECTIVE OF CHANGE MANAGEMENT
12. 14 September 2015 12G. SCOTT GILLIS, B. TECH
• 15 of the world’s biggest cost overrun projects
• Bent Flyvbjerg, professor of major programme management
at the University of Oxford’s Saïd Business School, says
overruns in the order of 50 per cent in real terms are
common for major infrastructure projects.
• A study of more than 5,400 IT projects found the average
overspend of the starting budget can top … 45%
• The average budget overrun for producing the Olympic
Games since 1976 has been around...200%
PROJECTS GONE AWRY … 1/2
13. 14 September 2015 13G. SCOTT GILLIS, B. TECH
• 15 of the world’s biggest cost overrun projects
• Canadian Firearms Registry – 36,917%
• Visegrad Hydroelectric Project (Yugoslavia) – 5,142%
• Sydney Opera House – 1,400%
• M50 South East Motorway (Ireland) – 556%
• Copenhagen metro, stages 2A+B – 386%
• Verrazano-Narrows Bridge (USA) – 384%
• N20 Patrickswell Cork (Ireland) – 370%
• Gezhouba Dam (China) – 337%
• Guangzhou City Transport (China) – 335%
• US 101 Helicopter (USA) – 330%
• Boston Big Dig (USA) – 324%
• Cuernavaca-Acapulco Toll Road (Mexico) – 300%
• Humber Bridge (UK) – 276%
• Dublin Port Tunnel (Ireland) – 261%
• Nanchang-Jiujang Highway (China) – 255%
PROJECTS GONE AWRY… 2/2
14. 14 September 2015 14G. SCOTT GILLIS, B. TECH
• “The MOC element helps ensure that changes to a process do not
inadvertently introduce new hazards or unknowingly increase risk of
existing hazards.”
• “The MOC element includes a review and authorization process for
evaluating proposed adjustments to facility design, operations,
organization, or activities prior to implementation to make certain that
no unforeseen new hazards are introduced and that the risk of existing
hazards to employees, the public, or the environment is not
unknowingly increased. It also includes steps to help ensure that
potentially affected personnel are notified of the change and that
pertinent documents, such as procedures, process safety knowledge,
and so forth, are kept up–to-date.”
Source: Introduction to Management of Change (Centre for Chemical
Process Safety)
SO WHAT IS MANAGEMENT OF CHANGE THEN?
15. 14 September 2015 15G. SCOTT GILLIS, B. TECH
• To understand the background of management of change one merely has to
look at the history of process safety
• The driving force for process safety has been primarily based on
catastrophic events.
Source: A portrait of process safety: From its start to present day
WHEN & WHERE DID IT COME FROM
• In the 1970s and 1980s, some of the
world’s most shocking and tragic
industrial accidents took place.
• Industries and government bodies
everywhere were forced to rethink
the technology and management
systems in industries from the safety
point of view.
16. 14 September 2015 16G. SCOTT GILLIS, B. TECH
• Managing changes to processes over the life of a facility is
one of nine elements in the RBPS (Risk Based Process
Safety) pillar of managing risk
• It includes management practices involving:
1) the recognition of change situations,
2) the evaluation of hazards,
3) the decision on whether to allow a change to be made, and
4) necessary risk control and follow-up measures.
• It is not required for “Like for Like” Replacements or
Changes “in kind”. These fall under routine maintenance.
FUNDAMENTALS OF MANAGEMENT OF CHANGE
17. 14 September 2015 17G. SCOTT GILLIS, B. TECH
• “The main product of an MOC system is a properly reviewed and authorized change
request that identifies and ensures the implementation of risk controls appropriate to
the proposed change.”
OBJECTIVE OF MANAGEMENT OF CHANGE
Source: Introduction to Management of Change
• “Ancillary products include appropriate
revisions or updates involving other
RBPS activities, such as modifying
process safety information, and
change communication/training.”
• “Outputs of the MOC element can also
be used to facilitate the performance
of other RBPS elements. For example,
approved change requests are
necessary to determine when some
readiness activities are performed...”
18. 14 September 2015 18G. SCOTT GILLIS, B. TECH
• The following list includes what the Mary Kay
O’Connor Process Safety Center at Texas A&M
University in College Station, Texas, consider the
top 10 process safety incidents in history.
• The incidents were ranked based on the cumulative
impact on loss of lives and economic losses, and
the resulting impact on the development of what
today we know as process safety.
10 WORST PROCESS SAFETY INCIDENTS
19. 14 September 2015 19G. SCOTT GILLIS, B. TECH
1. Fukushima Daiichi nuclear incident - 2011 (0)
2. Columbia space shuttle disaster - 2003 (7)
3. Phillips 66 plant in Pasadena, Texas (23)
4. Mexico City LPG leakage – 1984 (500)
5. The Flixborough disaster– 1974 UK (28)
6. BP Texas City distillation tower – 2005 (15)
7. The Macondo blowout 2010 GoM (11)
8. Piper Alpha – 1988 North Sea (167)
9. Chernobyl nuclear plant – 1986 Ukraine (56)
10. Bhopal Union Carbide plant – 1984 India (3000+)
* In ascending order based on the cumulative impact on loss of (lives), economic losses, and the
resulting impact on the development of what today we know as process safety.
10 WORST* PROCESS SAFETY INCIDENTS
20. 14 September 2015 20G. SCOTT GILLIS, B. TECH
• Software requirements
• Integration with Project Controls systems and processes versus
integration with EH&S systems and processes
• Training requirements
• Change management will not typically have a direct / immediate
implication on existing training or procedures (i.e. a design
modification may impact as yet unwritten procedures or training)
• Management of change will often require a thorough review of
associated procedure(s) in order that they be updated to reflect
the impact of any changes on the procedure(s)
HOW DOES THIS IMPACT OUR REQUIREMENTS?
21. 14 September 2015 21G. SCOTT GILLIS, B. TECH
• Project Management versus Process Safety
Green field versus brown field
Project concerns versus Operational concerns
Establishing the design basis versus understanding the
design basis
Risks to scope and schedule (cost) versus risks to safety
and production
Managing cost exposure versus managing health, safety and
environmental exposure
HOW DOES THIS IMPACT HOW WE MANAGE?
22. 14 September 2015 22G. SCOTT GILLIS, B. TECH
• Project Schedule and Budget versus Process Safety
• Project Controls integration versus Risk Based Process
Safety (RBPS) integration
• Focus on Schedule milestones and contingency drawdown
versus focus on Pre-Startup Safety Review (PSSR)
• Project sanction baselines versus original HAZOPS
• Maintaining the Current Control Budget (CCB) versus
maintaining the Standard Operating Procedures
HOW DOES THIS IMPACT HOW WE REPORT?
23. 14 September 2015 23G. SCOTT GILLIS, B. TECH
• Yes, and here is an example of why:
• In 2010 I was invited to participate on a small team within Suncor tasked with
developing a transition document for the purpose of bridging the gap between the
corporate Management of Change Standard and the various local business units’
Management of Change procedures.
• This programme was being conducted for all standards within the Process Safety
division of the organisation as well as other functional areas.
• One business unit did not really come on board and at the time we really couldn’t
grasp their lack of interest in our initiative, which on all accounts was very successful
and set a standard for other groups to follow.
• Suncor’s Major Projects division was speaking a different language all together –
they were interested in Change Management rather than Management of Change…
and our efforts were of little value or interest to them.
• When I took my role on the Lower Churchill Project this became quite clear to me
and I had to adapt to the Project Management world that was foreign to me while
working with Petro-Canada / Suncor.
DOES THIS REALLY MATTER?
24. 14 September 2015 24G. SCOTT GILLIS, B. TECH
• Change Management
A Project Management process for administering scope and schedule
changes efficiently and cost effectively
• Management of change
A Process Safety approach to administering changes to a facility that takes
into consideration the impacts on health, safety, environment, and
production.
• Conclusion
Although there are common elements from a structural perspective,
processes, procedures, and programs must tailored to address and be able
to accommodate the requirements of one or the other.
From a service provider’s perspective it is important to understand the
differences, recognise the opportunities in both market niches, and tailor
their products and services accordingly.
SUMMARY
25. 14 September 2015 25G. SCOTT GILLIS, B. TECH
• Red Green’s view on the wisdom of resisting change:
• https://www.youtube.com/watch?v=--KXkdStee0&list=PL8S43Q4MV8rd9iEONrAqZSh1-_APZ521T&index=2
AND FINALLY, A MOMENT OF REFLECTION…
26. 14 September 2015 26G. SCOTT GILLIS, B. TECH
• Web sites used in the preparation of this presentation include:
• http://www.change-management.com/tutorial-definition-2010.htm
• https://www.construction-institute.org/scriptcontent/index.cfm
• http://smallbusiness.chron.com/reasons-cost-overruns-project-management-63225.html
• http://www.fm-magazine.com/infographic/prime-number/15-world%E2%80%99s-biggest-cost-overrun-
projects
• http://svprojectmanagement.com/simple-steps-to-manage-your-project-changes
• http://www.aiche.org/ccps/topics/elements-process-safety/manage-risks/management-
change/introduction
• http://www.hydrocarbonprocessing.com/Article/3050913/A-portrait-of-process-safety-From-its-start-to-
present-day.html
• http://www.slideshare.net/ahmedgamal80/safety-instrumented-systems-angela-summers
• http://www.aiche.org/ccps/topics/elements-process-safety/manage-risks/management-
change/introduction
• https://www.youtube.com/watch?v=--KXkdStee0&list=PL8S43Q4MV8rd9iEONrAqZSh1-
_APZ521T&index=2
• http://www.pmi.org/learning/~/media/PDF/Knowledge%20Center/one-solution-project-success-
whitepaper.ashx
SOURCES
Editor's Notes
Quick Facts:
560,000 m3 of concrete required to build the structures at Muskrat Falls (~ 3 Hebron gravity-based structures )
Powerhouse structure will be as tall as the Peace Tower on Parliament Hill
Turbine efficiency will be one of the highest obtained in NA, and the turbines will be amongst the largest Kaplan turbines in the world.
LIL will include 4500 towers, 460,000 insulators and 6 million metres of conductor
LIL will be the most robust transmission lines in the province.
824 MW hydroelectric facility at Muskrat Falls
400 km transmission line between Muskrat Falls and Churchill Falls
~1,000km transmission line between Muskrat Falls, through the Straits and to Soldier’s Pond
Emera to construct and operate Maritime Link