London 2012 Update - Olympic Delivery Authority - David Birch

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  • 1. Olympic Delivery Authority* EVA 16 London 2012 Update 15 June 2011 Presented by David Birch * prepared by CLM Delivery Partner Ltd
  • 2. 2 London 2012 Update Programme status in May 2011 Learning Legacy Programme Strategy Framework Delivery Platform Methods Reporting Maturity Timeline Benefits and Lessons Learned Our EV system v ANSI /APM Q&A and feedback
  • 3. The Olympic Park nearing completion
  • 4. Olympic Stadium - Complete 31 March 2011
  • 5. 5 Olympic Stadium Olympic Stadium – complete for LOCOG Overlay
  • 6. Aquatics - forecast completion 19 July 2011
  • 7. 7 Aquatics Centre in Games configuration with temporary stands Pools full and up to temperature
  • 8. Velodrome - Complete 12 Jan 2011 BMX – forecast completion 1 July 2011
  • 9. Basketball Complete - 27 May 2011
  • 10. Basketball Basketball Interior at completion
  • 11. 11 Athletes Village - First Block complete, progressive completion to November 2011
  • 12. 12 May 2010 Landscape & Public Realm – completion forecast February 2012
  • 13. Landscape & Public Realm – Wetland flood defences complete
  • 14. Handball – Complete 11 May 2011
  • 15. Handball - Interior
  • 16. Multi Storey Car Park – Complete 28 January 2011 International Broadcast Centre – Complete 15 April 2011 Main Press Centre – forecast completion 25 July 2011
  • 17. Lea Valley White Water Centre – Complete December 2010
  • 18. Test Events - on the horizon 18 Basketball – 16th to 21st August 2011 London Basketball International Invitational BMX – 19th & 20th August 2011 UCI BMX Supercross World Cup Beach Volleyball - 9th to14th August 2011 Visa FIVB Beach Volleyball International Mountain Bike – 31 July 2011 Hadleigh Farm Mountain Bike International
  • 19. 19 Progress in numbers… Over 12,500 workers on the (secure) Olympic Park Accident Frequency Rate is 0.16 Significant Environmental Incident Rate is 0.03 Programme Budget is £9.3bn Current ODA Budget is £7.3bn Games time scope of Olympic Capital Programme is on schedule and 87% complete Schedule Variance = (£16m), SPI = 0.99 Cost Variance = (£8m), CPI = 1.00
  • 20. 20 Earned Value – Programme Strategy Single data collection structure implemented through project teams and into Tier 1 contractors Fully integrated budget-loaded programme Earned Value (£) as the common means of reporting progress over a diverse programme of projects Various funding sources and strict budgetary and change governance Use of NEC3 Contracts on Olympic Park & off-park venues
  • 21. 21 Programme Controls - Framework Stable but flexible delivery-driven WBS created Original Baseline Budget (OBB) or ‘Yellow Book’ published (November 2007) Baseline modelled in systems & reconciled to OBB Management subsystem links established via the WBS and procurement codes Robust change control process implemented A ‘control culture’ and trust in reporting accuracy built up Forecast dataset created in P6 All contracts included Project Controls requirements
  • 22. 22 Delivery Platform - Performance Measurement & Commercial Management CLM Level 1 Schedule CLM Level 2 Cost Loaded Schedule P6 Production Database Tier 1 Contractor Cost Loaded Schedules Labour (hours and cost) Equipment Materials Supplies Contracted Services Transport and Travel Other P6 External Database N o. A ct ivit y Jan Feb M arch A pril M ay Target Act ual C hanges 10 1 Project M an £10 £10 £10 £10 £10 10 2 Design £12 £40 10 3 Tenders £30 10 4 Substructure £15 £20 £40 10 5 Superstrucutre £50 £70 £80 10 6 Snagging £10 CLM Commercial ManagementTier 1 Contractors Submission Under NEC Contract Resources & NEC Activity List Schedule Performance & Cost Performance Reports etc. Detailed EV and % Complete Reviewed by CLM - Summary Submitted Actual Cost (via CLM Cert) COBRA Earned Value Actual Cost ODA Finance (Oracle)
  • 23. 23 Methods Anticipated Final Cost (AFC) (AFC = cost to date + estimate for remaining work) AFC = Actual Costs + (Budget at Completion – Earned Value) CPI Variances (favourable is positive, unfavourable is negative) Cost Variance (CV) = Earned Value – Actual Costs Schedule Variance (SV) = Earned – Planned Costs Variance at Completion (VAC) = Budget at Completion (BAC) – Anticipated Final Cost (AFC) Performance Indices (favourable is >1.0, unfavourable is <1.0) Cost Performance Index (CPI) = Earned Value / Actual Cost Schedule Performance Index (SPI) = Earned Value / Planned Value (Baseline) % Scheduled / Complete / Spent % scheduled = Baseline Value (planned costs) BAC % complete = Earned Value BAC % spent = Actual Costs BAC X 100 X 100 X 100 Varying Techniques were used, ranging from tracking progress against key quantities (number of piles driven, tonnes of steel erected or metres of cable pulled), through assigning value to milestones, down to Level of Effort (LOE) for Services/ demand led activities.
  • 24. 24 Reporting One week to turn around month-end results Flash reports to remove data anomalies Project Cost Performance Reports Programme Cost Performance Report Project Status Report Monthly Programme status report - Dashboards used for communicating key performance trends to senior management Monthly/Quarterly Project Reviews Quarterly Funders Report
  • 25. MonthEnd Monthly EV Reporting Cycle
  • 26. 2006 2007 2008 2009 2010 2011 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Controls Building Blocks in Place Baseline developed & Yellow Book Published Culture & Trust Established Systems Maturing Change Control implemented Monthly & Quarterly Reviews Trending Process AFC process Monthly Trend Reviews Monthly Trend & AFC Reviews Simplify Baseline Schedule Integration maturing Support & Training Assurance, Support & Intervention (where necessary) Align Reporting Maturity Timeline Big Build; CompletionBig Build; StructuresBig Build; FoundationsDesign, Dig, Demolish
  • 27. Governance Framework Mature Programme Controls Schematic Tailored reports to support Governance decision points Key Meeting Key Meeting Functions (Design, Town Planning, SHQE, etc) and Stakeholder defined priority themes Contract Admin (inc Procurement) Change Control Risks, Issues and Trends Schedule & Integration Cost Engineering Enterprise Accounting ControlledPerformance ManagementBaseline WBS WBS Approved Changes Contractor Project Team Contractor Project Team Contractor Project Team Commonprocesses&toolsdefinedin ContractWorksInformation PerformanceData Contractor Project Team Performance Data Reporting hub for analysis Data with Narrative Datawith Narrative
  • 28. 28 Benefits EV was pivotal in the successful programme controls used for London 2012. All 32 criteria specified in ANSI / EIA 748 and APM were applied, the most influential being: 1. Define authorised work and resources via WBS 3. Ensure management subsystems support each other, the WBS and the OBS 8. Maintain Performance Measurement Baseline at Control Account (C/A) level 15. CBB = approved project budgets + contingencies 17. Prohibit multiple accounting as direct costs are summarised through the WBS 22. Produce monthly performance measurement data at C/A level 27. Develop monthly AFC’s and compare to CBB 28. Incorporate all authorised changes in a timely manner Baseline kept current (via change control) to reflect the developing delivery strategies Comprehensive Risk process integrated with Controls
  • 29. 29 Lessons Learned Spend the time and resources to get your Baseline right (and minimise heartache down the road) Keep Baseline high level and ensure Forecast is dynamic and integrated Everyone must work within the WBS structure Cost collection system fully keyed-in by coding Contractors keyed in at lower levels Provide right level of alignment, training and assurance to include: Customer’s and stakeholder’s organisations Early engagement with Contractors teams Run Services and Operations on Level of Effort (with performance measured against milestones and KPI metrics) Keep checking fitness-for-purpose
  • 30. 30 London 2012 EV System v ANSI and APM 1. Implemented and used in checks and balances 2. Implemented and influential when required 3. Implemented, enforced and very influential over the programme Criteria Ranking Criteria Ranking Criteria Ranking 1 3 12 2 23 3 2 2 13 1 24 1 3 3 14 1 25 2 4 1 15 3 26 2 5 1 16 2 27 3 6 2 17 3 28 3 7 2 18 1 29 2 8 3 19 1 30 2 9 2 20 2 31 3 10 2 21 2 32 3 11 2 22 3
  • 31. 31 Final thoughts from London 2012 Team Be Flexible Adjust the systems deployed to suit the phase and nature of construction Keep it Simple Simplified terms Clear, concise and graphic reporting Data analytics but report on the issues Aim for ‘No Surprises’ Comprehensive Baseline Spotting risks and issues early enables early mitigation Leads to effective management of scope, cost & schedule
  • 32. 32 Q&A and feedback Q & A
  • 33. 33 The official Emblem of the London Organising Committee of the Olympic Games and Paralympic Games Ltd is protected by copyright. © London Organising Committee of the Olympic Games and Paralympic Games Ltd 2007. All rights reserved. Thank you Thank you