This document discusses best practices for project controls in the energy sector. It begins by introducing the speaker and background of the company. It then defines best practices as consistent processes that achieve optimal results. The document outlines how organization, processes, and systems can both defeat and enable best practices. When defeated, practices include misaligned budgets and estimates, manual data entry, and a lack of visibility for managers. When enabled, practices include integrated change control, automatic scheduling and cost integration, and a project controls system that eliminates duplicate data entry and provides managers full visibility.

2. Project Controls
Best Practices
for the Energy Sector
Presented by
Mark White
Vice President, EcoSys

3. Agenda
• Introduction
• What Is Best Practice?
• Organization and Process Enabled
• Systems Enabled

4. • Founded in 2000 – Enterprise Control Systems
• Enterprise Project Controls Software Experts
Designers & Developers of original Primavera P6
and EcoSys EPC
• Implementation of Project Controls Best Practices
• Strong Technology and Implementation Partner
Networks
• Global Standard for Leaders in Industry and Public
Sector
Our Background

5. Representative Customers

6. What Is Best Practice?
• Consistent application of processes proven to
achieve optimal results
• Not just one way of doing things – no
instruction manual
• Lots of common practice regarding forecasting
– no motherhood and apple pie today
• Defeated by inadequate organizational,
process and systems infrastructure

7. Forward
Looking
Backward
Looking
Value
Adding
Commodities
Organization and Process

8. Organization and Process – Defeating Best Practice
8
Forward
Looking
Backward
Looking
Value
Adding
Commodities
PO coding not aligned with
Estimate coding
Budget is summarized
estimate, detail not visible
Contingencies are fixed
percentages with minimal risk
basis. Leads to early, optimistic
utilization
Offline change process not owned
by project controls. No real-time
visibility into Changes and Trends.
Schedule developed without
consideration of cost needs. No
means of data exchange.
Without aligned data,
Forecasting becomes a “black
hole” of best guesses based on
gut feel.
Finance “allocation” rules not agreed
with project controls. Actuals don’t
match budgets.
Progress reporting is non-
standard and subjective

9. Organization and Process – Enabling Best Practice
Forward
Looking
Backward
Looking
Value
Adding
Commodities
CBS structure aligned with
Estimate breakdown
Budget merely the final
iteration of the estimating
process, full traceability.
Contingencies based on
objective risk assessment,
utilized appropriately
Integrated change control
process (inc workflow and
DOA).
Real-time draw from
contingency and impact on
Forecast
Schedule automatically
feeding EcoSys to ensure
accurate time-phasing and
progress
Full internal integration,
ensuring all sub-processes
converge in the Forecasting
module.
Forecasting accounts for
various contracting and
measurement methods.
Automated loading of
Commitments and Actuals, enabled
by a compatible, common coding
structure across the enterprise

10. Systems – Defeating Best Practice
Summary
Financial
Obligations
ERP System
Project
Finances
Detailed
Performance
Obligations
Offline Tools
Manual Data
Entry
Excel and
Access
SAP,
Oracle, etc
ERP
Add-On
Integrated
One-Way View
Visibility
Manual Data
Extraction
EcoSys
EPC
u w
v
y
x
z
u Du
project
high le
v To
recogn
often u
functio
w Pro
offline
obligat
many,
of main
albeit h
x Pro
manua
the ER
y Ev
analyse
the ER
z Fin
visibilit
proces
being m
standa

11. Systems – Defeating Best Practice
Summary
Financial
Obligations
ERP System
Project
Finances
Detailed
Performance
Obligations
Offline Tools
Manual Data
Entry
Excel and
Access
SAP,
Oracle, etc
ERP
Add-On
Integrated
One-Way View
Visibility
Manual Data
Extraction
EcoSys
EPC
u w
v
y
x
z
u Due to ERP System inadequacies,
project financials are often managed at a
high level
v To support forecasting and revenue
recognition processes, ERP add-ons are
often used but are still serving the Finance
function, not the Projects function
w Project managers are forced to use
offline tools to meet the performance
obligations of their clients. These tools are
many, varied, and uncontrolled. The costs
of maintaining these tools is significant,
albeit hidden.
x Project Managers waste excessive time
manually obtaining commodity data from
the ERP, e.g., commitments and actuals
y Even worse, the results of their detailed
analyses must be double-keyed back into
the ERP
z Finance and Business managers have no
visibility into the underlying systems and
processes and must trust that projects are
being managed in accordance with
standards. Auditing is time-consuming and
costly.

12. Systems – Enabling Best Practice
Summary
Financial
Obligations
ERP System
Detailed
Performance
Obligations
Project Controls
System
Excel and
Access
SAP,
Oracle, etc
ERP Add-
Ons
Integrated
Two-Way View
Visibility
EcoSys
EPC
u The
detailed
avoiding
v No l
to suppo
w Proj
purpose
standard
tool is us
practice
x No l
extractin
it’s upda
y Proj
Controls
ERP at th
double k
z Fina
visibility
and can
This new
all proje
u
v
w
x y
z

13. Systems – Enabling Best Practice
Summary
Financial
Obligations
ERP System
Detailed
Performance
Obligations
Project Controls
System
Excel and
Access
SAP,
Oracle, etc
ERP Add-
Ons
Integrated
Two-Way View
Visibility
EcoSys
EPC
u The ERP System need not accommodate
detailed project management processes, thereby
avoiding costly ERP customization.
v No longer is there a need for the ERP Add-On
to support project finance management.
w Project managers manage projects in a
purpose built commercial tool that enforces
standards across the entire projects portfolio. The
tool is used willingly because it was built for best
practice project controls.
x No longer do Project Managers waste time
extracting commodity data from the ERP because
it’s updated daily via automated integration.
y Project financials roll up in the Project
Controls System and are automatically fed to the
ERP at the required level of detail. No more
double keying is needed.
z Finance and Business managers have FULL
visibility into the underlying systems and processes
and can easily audit against published standards.
This new visibility drives positive behaviors across
all projects.
u
v
w
x y
z

14. Thank you.
www.ecosys.net
info@ecosys.net