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Crossrail - Governance and Decision Making - FuturePMO 2018

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Crossrail - Governance and Decision Making - FuturePMO 2018

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Presented by Walter Macharg Head of Change Control and Cost Assurance, Crossrail

Presentation Synopsis: Referencing the comprehensive Crossrail learning legacy resources, Walter will shine a light on the Programme Controls and governance effected by the PMO to support informed decision making. A ‘real’ mutli-faceted PMO story including lessons and big wins that all delegates will relate to.

Presented by Walter Macharg Head of Change Control and Cost Assurance, Crossrail

Presentation Synopsis: Referencing the comprehensive Crossrail learning legacy resources, Walter will shine a light on the Programme Controls and governance effected by the PMO to support informed decision making. A ‘real’ mutli-faceted PMO story including lessons and big wins that all delegates will relate to.

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Crossrail - Governance and Decision Making - FuturePMO 2018

  1. 1. Governance and Decision Making on Crossrail Walter Macharg Head of Change Control and Cost Assurance
  2. 2. Header here max 30 charactersThe Elizabeth Line Route map 10% 10% increase in London’s rail capacity with up to 72,000 passengers per hour 100km The route will run over 100km, including through 42km of new tunnels under London 40 Crossrail will link 40 stations, including 10 new stations £42bn Crossrail will add an estimated £42bn to the economy of the UK.
  3. 3. Header here max 30 charactersFinished….. ….almost
  4. 4. Header here max 30 charactersProgramme Overview Governance - Organisation - Funding
  5. 5. Header here max 30 charactersProgramme Overview Scale and complexity
  6. 6. Header here max 30 characters e-Mail: learninglegacy@crossrail.co.uk Web: http://learninglegacy.crossrail.co.uk
  7. 7. Header here max 30 characters12 Learning Legacy Themes
  8. 8. Header here max 30 characters What does the Programme Controls function do and what’s it for? REPORTINGCost & Controls Performance Assurance Change Control Risk Management Planning Performance Analysis Standards - Information - Analysis & decision support - Assurance
  9. 9. Header here max 30 charactersDefining Governance ‘Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined’ Organisation for Economic Co-operation and Development OECD Principles of Corporate Governance 2004 www.oecd.org As quoted in: Directing Change A guide to governance of project management
  10. 10. Header here max 30 charactersDefining Governance “…The ability to make effective decisions quickly…” 1. Framework Repeatable Reproducible 2. People Provide the evidence Provide the culture & environment …to make AND implement the decision!
  11. 11. Header here max 30 charactersWork and Organisation breakdown structure
  12. 12. Header here max 30 charactersWork Breakdown Structure The Scope Book
  13. 13. Header here max 30 charactersCost baseline budget FUNDINGAFCDC TIME COST£m CONTROL BUDGET Contingency Delivery and Financing Budget Sponsor Funding Contingency Investment Income • Authorised by CRL Board • Analysed in WBS • Amendments subject to CHANGE CONTROL • Comprehensive risk register • Range of confidence levels IP2 IP1 IP0 • Forecast cash flows and risk • PDA defines Intervention Points
  14. 14. Header here max 30 charactersDelegation of contingency budget CONTINGENCYTYPE Delivery and Financing Budget BOARD SECTOR PROJECT CONTRACTOR (Included in Target Cost) PROGRAMME • Catastrophic events • Strategic / political relation ships • Sponsor change • Major design or scope change • Major schedule delay • interface risks between projects • All risk to delivery of the project scope under the Project Manager’s control • Risks for which no contract price change is due, such as delivery cost overrun Contingency to fund risks:
  15. 15. Header here max 30 characters An integrated suite of standard systems. Data warehouse to consolidate the ‘single source of truth’ and enable dynamic data interrogation Crossrail systems setup
  16. 16. Header here max 30 characters Key pillars of successful earned value management Define the Baseline: scope and budget Work breakdown structure Objective performance measurement Variance analysis and corrective action reporting Disciplined and timely change control Systems – capture cost and change, and control delegation and approval APM: Earned Value Management Handbook, EVM Compass
  17. 17. Header here max 30 charactersEarned value KPIs: cost and schedule CPI= 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 £m CEs adjust the PMB Variance from PMB Schedule Variance (SV) Cost Variance (CV) ACWP = Actual Cost of Work Performed BCWP = Budgeted Cost of Work Performed BCWS = Budgeted Cost of Work Scheduled PMB = Performance Measurement Baseline Illustrative view of Earned Value (EV) measurement 17
  18. 18. Header here max 30 charactersImplementing EV 18 1. Set clear expectations via the Works Information 2. Publish clear processes and templates, and reinforced this with guidance and training 3. Embed tools and systems 4. Undertake progressive assurance
  19. 19. Header here max 30 charactersPhysical progress measurement 19 The Quantity and Unit Rates Report
  20. 20. Header here max 30 charactersThe intranet Planning Page
  21. 21. Header here max 30 characters
  22. 22. Header here max 30 characters
  23. 23. Header here max 30 charactersUsing EV to compare performance Earned Value displayed comparatively (CCB, SPI, CPI, EAC)
  24. 24. Header here max 30 charactersEarned value issues Have to have confidence in the systems and data Labour intensive Entrenched commercial positions have meant that teams have had to caveat all their EV data with a ‘what if’ analysis Is it: understood - believed - acted upon?
  25. 25. Header here max 30 charactersEarned value extrapolation 250 300 350 400 450 500 P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 P13 P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 P13 P01 P02 P03 P04 P05 P06 P07 P08 P09 P10 P11 P12 P13 P01 P02 P03 P04 P05 FY 15/16 FY 16/17 FY 17/18 FY 18/19 EAC Range EAC Low EAC High AFC
  26. 26. Header here max 30 charactersRisk Hierarchy: follows the OBS Risk Governance Risk Reporting Crossrail Limited Board Executive Committee Risk Sub- Committee Programme Risk Panel Delivery Reviews Audit Committee 1) Report 2) Escalate 3) Aggregate Contractor Risks Project Risks Strategic Risks Programme Risks Sector Risks
  27. 27. Header here max 30 charactersRisk Registers and ARM Standard Risk Register formats used across the programme Consistency of language, process, information, assessment Improve recognition and engagement with risk information to support management and decision making Produced directly from ARM Standard Risk Register iPad Format Risk Register
  28. 28. Header here max 30 characters Quantitative Risk Assessment (QRA) provides a measure of risk exposure allowing us to monitor performance and inform decisions Quantitative Risk Assessment (QRA) Exposure to cost and schedule risks
  29. 29. Header here max 30 charactersReporting Hierarchy Schedule (P6) Risk and Issues (ARM) Cost (Prism) H&S (RIVO) Change and Contract Admin (eB) Risk managers Input Crystal Data Warehhouse Cost Managers Input Project Dashboards Civils Sector Report Stations (RfL) Sector Report Stations (LUL) Sector Report Systems Sector Report Technical Directors Report Utilities and Logistics Sector Report Are We on Time? Contributors Are We Wold Class? Contributors Are We Safe? Contributors Are We Within Funding? Contributors Programme Board Report Semi Annual Construction Report (SACR)Sponsors Crossrail Exec/ Board Programme Board Contributors Sectors Project Directors/ Managers Sector Reporting and Control Team input Base Data from Tier 1 Contractors Periodic Contractor Dashboards Functional Leads Operations Report On Network Works Report
  30. 30. Header here max 30 characters PM Team: Write commentary Programme Controls: Paste data graphics Project Dashboard creation process
  31. 31. Header here max 30 charactersProject Dashboard
  32. 32. Header here max 30 characters HSPI ● 2.34 AFR(LTC) ● 0.14 CPI ● 0.95 SPI ● 0.93 Sch.Var.(t) ● -3.3 periods ES(SPI) ● 0.95 QPI ● 1.3 TCPI ● TBC ESMPI ● 1.7 Input ● 2.34 Output ● 2.13 Small data points =other contr acts in same sector PERIOD MOVEMENT TO DATE (PAF)Supplier Assurance Target 0% 1.0 0/0% 0/0%* 0% 100% 1.3 Actual 25% 0.77 33(51%) 45(70%) 2(18%) 50% 2.00        Period D 7% -0.11 -19% -4% 8% -21% Forecast Accuracy Schedule Quality AgedNCEs LowValue NCEs AgedURTs Cont.Red risks reviewed Agreements Perf. 3 monthforecast 0-1score # (%) >84 days # (%) <£50k %>6 Periods %inPeriod Score0 to 2 KPIs
  33. 33. Header here max 30 charactersThe Board Report – four questions
  34. 34. Header here max 30 charactersPerformance Assurance Round 1 Average Round 2 Average Round 3 Average Round 4 Average Round 5 Average 19 2 24 14 13 6 15 25 23 22 21 Best Collective score 26 Round 6 Average 27 3028 29 World Class ZoneValue Added ZoneIndicative average compliance line High Performance Performance Level OUTPUTSPerformance Risk PerformanceLevel INPUTS HighPerformancePerformanceRisk 3 2 1 0 1 32 57 Examples of world class performance Cross functional contractor average Individual contractor or JV cross functional performance
  35. 35. Header here max 30 charactersDecisions about CHANGE
  36. 36. Header here max 30 charactersCrossrail below the surface
  37. 37. Header here max 30 charactersCase Study - Deletion of 8 shafts • Benefits • Foreseen consequences • Unforeseen consequences
  38. 38. Header here max 30 charactersVentilation Shafts • x13 ventilation and emergency intervention shafts • Control air flow and the ‘piston effect’ during normal operation • ESSENTIAL to control smoke in the event of a fire to provide safe egress
  39. 39. Header here max 30 characters???
  40. 40. Header here max 30 charactersVentilation Shafts 1. Provides a significant reduction in surface impacts 2. £118m cost saving 3. Provides the ability to ventilate both tunnels in a fire. 4. Requires the introduction of full height PEDs & platform ventilation x8 shafts REMOVED… Westbourne Bridge, Hyde Park, Park Lane, Hanbury Street, Lowell Street, Hertsmere Road, Blackwall Way & Warren Lane
  41. 41. Header here max 30 charactersVentilation Shafts 5. Limmo Peninsula1. Fisher Street 2. Stepney Green 3. Mile End 4. Eleanor Street
  42. 42. Header here max 30 charactersPlatform Edge Screens Full height screens  Ventilation segregation  £118m cost saving   Jubilee Line Extension, London  Platform Edge Doors  No ventilation segregation.
  43. 43. Header here max 30 charactersThe change decision making process
  44. 44. Header here max 30 charactersKey pillars of successful change control Baseline: scope and budget Work breakdown structure Delegation Systems – capture cost and change, and control delegation Approval
  45. 45. Header here max 30 charactersSystems to capture change Trend raised in Prism cost system Critical issues meetings Contractual early warning notice Project Technical Request process: Request for Info, Field Change, Non Conformance Risk capture via ARM Weekly change alert to Executive Contractual risk reduction meetings Site progress meetings Etc… Regular trend review meetings PRISM G2 Change AFC and risk reports: Project dashboard and Board report A full audit trail in the cost system for changes to forecast and budget
  46. 46. Header here max 30 charactersThe change approval process 2 week cycle Delivery or Programme Change? Project Team Complete Change Paper Formal Review Process Commercial and Change Sub Committee (CCSC) Reject Approve Programme Project Funded Change Delivery Requirement for Change identified Over £XXm Refer to Board Decision Delegated Authority Standard template with details of change request Captures: • key issues • Business case • Safety implications • Financial impact Reviews by all relevant stakeholders and subject matter experts. Change papers are sent for revision if information is unclear or incomplete.
  47. 47. Header here max 30 characters In excess of 20,000 implemented compensation events Volume of change £0.15m 20,187 Total £3,000m Total 700 Programme Changes in six years
  48. 48. Header here max 30 charactersLessons learned: things to do better Procurement strategy for design If design ownership retained by employer, complete the design before procurement Level at which to control design change Try to capture design change at time of issue Interfaces between contractors, in design and schedule Projects with multiple stakeholder interfaces are risky; ring fence the projects as much as possible Train and signalling systems design and testing will over- run.
  49. 49. Header here max 30 charactersLessons learned: what went well Establish the controls baseline - single source of truth Work Breakdown Structure and Cost Breakdown Structure, related to the organisation breakdown structure Establish programme controls early - spend time, effort and money on the controls systems BEFORE main contract works are procured Establish a culture of performance improvement (e.g. through performance assurance) Allocate risk to appropriate levels of the organisation, and delegation of contingency Continually review risk via QRA and comparison to contingency and total budget authority Capture change to scope, forecast and budgets early via integrated systems Formal project performance reviews Reinforce the culture and build confidence
  50. 50. Header here max 30 charactersDid we succeed in controlling change? Little major change to design But high volume of design change at the detailed level Contracts let before civils design fully complete Few major Sponsor changes Self imposed schedule change, particular at contract interfaces Contingency budgets were utilised Late stage problems with systems integration Passenger service through the main tunnel in 2019
  51. 51. Header here max 30 characters 12 Themes • Project and Programme Management • Procurement • Authorisations and Consents • Land and Property • Health and Safety • Environment • Engineering • Operations • Talent and Resources • External Affairs • Innovation • IT Crossrail Learning Legacy http://learninglegacy.crossrail.co.uk/
  52. 52. Header here max 30 characters Turner & Townsend in Infrastructure
  53. 53. Header here max 30 charactersChange driven by conditions
  54. 54. Header here max 30 characters Success factors for the Connaught Tunnel change Collaborative approach Transparency Good process Plan for early completion Expertise

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