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Modular Construction Conference 2012
The document outlines effective project control strategies implemented by Dr. Anamaria Popescu for a coalbed methane drilling program involving significant investment and environmental considerations. Key steps included developing a Work Breakdown Structure (WBS), integrated scheduling, risk assessment, and establishing a contingency management system to enhance project efficiency and accountability. The approach emphasizes collaboration, education, and hands-on involvement to ensure stakeholder understanding and commitment to the project's goals.
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Modular Construction Conference 2012
- 1. Adopting Effective ProjectControls 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
- 3. A Good Indication…. ….that Your Project Controls System was Ineffective!!!
- 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 inFeasibility 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: WorkBreakdown 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: WhatWe 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 forProject 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
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- 14. Step 2a: OBSDevelopment • Definition: The identification of project participants and their hierarchical relationship. • Assigned in P6 Directly
- 15. Step 2b: OBSAssignment • Intersection of OBS and WBS Creates:
- 16. Step 3: ActivityDevelopment Activity Elements Calendar Interface Relation- Points ships Activity Durations Codes (3) WBS No.
- 17. Activity Development: WhatWe 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
- 18. Activity Development: Standardizationof Well Activities Well No. 1 18
- 19. Step 4: ScheduleIntegrity Check • Assess through Metrics • Don’t Skip! • CP should not be published • P6 Schedule Report or Fuse
- 20. Step 5: CriticalPath 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!
- 21. Step 5: CriticalPath Review • Achievable project completion date set! • Avoided……….
- 22. Step 6: IncorporatingRisk 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
- 23. Step 6: IncorporatingRisk into the Schedule Risk Register Mitigation Strategies
- 24. Step 6: IncorporatingRisk into the Schedule Likelihood of Occurrence Risk Assessment Matrix
- 25. Step 6: IncorporatingRisk into the Schedule
- 26. Step 6: IncorporatingRisk into the Schedule Forecasted Project Duration with Probability
- 27. Step 6: IncorporatingRisk into the Cost Estimate Forecasted Project Total Cost by Probability
- 28. Step 6: Costand Schedule Sensitivity Index Pareto Principle : 80% of Risks Originate from 20% of the Activities
- 29. Step 6: Costand Schedule Sensitivity Index Cost Sensitivity H007 - RR Flagging & Administration 64% D001 - Detailed Engineering 44% H002 - General Conditions 39% H004 - Inflation 38% H006 - CA&I Incidentals 37% H003 - Overhead & Profit 36% H001 - Balance of Scope 25% D002 - Permitting 19% C009 - Electrical Service & Distribution 8% C011 - Membrane Roofing -7%
- 30. Step 6: ContingencyManagement • 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: ContingencyBoxes • 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
- 32. Step 6: ContingencyBoxes (Continued) + + + = 32
- 33. Step 6: Calculatethe Contingency • Choose the % of Contingency to Allocate based on: • The corporate culture of the company. • How much risk the leadership team is willing to take. • Risk management plan • Monte Carlo Simulation (PERT) of the baseline schedule using the three durations • Pert Master © • “What-If” Scenarios using all 3 durations • Benchmark Data • “Cutting Edge Technology” vs. “Tried and True” Projects • Length of Project • Phase of Project Calculate contingency duration based on Total Duration of Longest Path x % – From Start Milestone to Early Finish Date of Project 33
- 34. Step 6: PercentageAllocation • 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: PercentageAllocation 15% Contingency Total Project Duration=300 Days Contingency:45 Days PM: 60% PGM: 30% PD: 10% “Drop Dead Date” 35
- 36. Output: Integrated BaselineSchedule
- 37. Output: Overall ProgramCritical Path Drilling Sequence 37
- 38. Step 7: ScheduleBasis • 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
- 39. Step 8: IntegratingCost and Schedule: Earned Value
- 40. Integrating Cost andSchedule: Earned Value
- 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 whatthe 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 theteam 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
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- 45. Contact Information Dr.Anamaria Popescu, PE,PMP,PSP Brisbane Office 2/19 Musgrave Street West End, QLD, 4101 Email: anamariap@mclachlanlister.com Phone: 61 07 3255 0223 Sydney Office Perth Office Level 1, 1 Hickson Road 189 Colin Place Phone: 61 02 9241 7328 Phone: 61 08 9480 0647