Johnson - Project Controls - CII Overview

September 10, 2010
Allan Johnson, PE (ret)

Outline
• Overview
• Key Definitions
• Phases of Project
• Keys to Project Control
• Change Management
• CII Resources

Project Success
•Meet Project Goals:
• Budget
• Schedule
• Safety
• Quality (functionality)
• Business Case

Project Priorities
•Cost
•Schedule
•Capability
(CII – IR 204‐2 Project Priority Calculator)
(CII – RS 214‐1 Trade‐off between Cost & Schedule)

Work Your Plan

Create Standard
Template
Project Teams
Define Scope

Key Definitions:
• A Work Breakdown Structure (WBS) is the
hierarchical representation of a complete project
or program, its components being arrayed in ever
increasing detail.
• A WBS Element is a component at any level on a
WBS.
• A Cost Breakdown Structure (CBS) is the
hierarchical representation of all cost accounts in
a project to include indirects and overhead. The
WBS is included within the CBS.

Key Definitions:
• A Work Package is a well‐defined scope of work
that terminates in a deliverable product(s) or
completion of a service.
(CII – 6‐6 Work Packaging for Project Control)
• A Task is an operation performed by an
individual, crew(s), and/or equipment, such
operation being directly or indirectly required for
completion of a work package.

Key Definitions:
• Control Accounts are selected accounts used by
managers as the basis for resource allocation,
productivity management, and/or data collection
for the historical.
• Activities are associated with the scheduling
function and refer to the work represented by
arrows on a arrow‐diagram‐method (ADM)
critical path format schedule. An activity can be a
task on a detailed schedule or a work package on
a more summary schedule.

Key Definitions:
• Scope Definition is the key starting point in any
project.
(CII – 6‐2 Scope Definition and Control)
(CII ‐ 113‐2 Project Definition Rating Index (PDRI) –
Industrial Projects – including STAR Tool)
(CII ‐ 155‐2 Project Definition Rating Index (PDRI) –
Building Projects)

Phases of Project
•Planning
•Engineering
•Procurement
•Construction
•Startup
•Closeout

Planning
• Schedule
• Budget
• Deliverables

Engineering
• Planned to meet needs of Procurement and
Construction
• Determine packaging of engineering
deliverables
• Control scope

Engineering Percentage Completion
• Start drafting 0%
• Drawn, not checked 20%
• Complete for office check 35%
• To owner for approval 70%
• First issue 95%
• Final issue* 100%
*Only when no additional engineering is
anticipated

Procurement
• Early involvement to identify suppliers
• Secure equipment information to feed the
engineering effort
• Procure long lead items to meet schedule needs
• Monitor and Expedite to meet schedule needs
• Quality inspections –FAT, SAT
• Material Management

Procurement Percentage Completion
• Bidders list developed 5%
• Inquiry documents complete 10%
• Bids analyzed 20%
• Contract awarded 25%
• Vendor drawings submitted 45%
• Vendor drawings approved 50%
• Equipment shipped 90%
• Equipment received 100%

Construction
• Logistics and sequencing of activities is
vital
• Work Packaging
• Physical progressing is key
• Progress Payments

Startup
• Start Planning begins early
• Complex due to interdependencies of
systems
• Temporary Systems
• Work Packaging

Closeout
• Asset values set up for depreciation
• Asset management setup
• Data capture

Keys to Project Control
• At the initiation of project create a
schedule and control budget that aligns
with the project execution plan.
• Maintain a robust change management
system.
• Have a contingency management plan.

Keys to Project Control
• Reassess progress and project events on a
regular frequency and update forecasts.
• Assess variation to the current budget and
schedule to identify potential problems.
• Plan and implement action to correct
variations.

Control Schedule
• Sample Control Schedule

Control Budget
• Sample CBS WBS.xls

Progress Updates
• Frequently Update & Report
• Schedule
• Actual compared to Baseline Schedule
• Budget
• Sample Progress Payment Continuation
Sheet

Change Management
• Scope Control is Vital!
• Loss of scope control during engineering
ranks second in terms of cost overruns
• Cost impact of change is related to point in
time
(CII ‐ SP43‐1 — Project Change Management)

Keys to Change
Management
• Promote a balanced change culture
• Encourage beneficial change
• Prevent/Discourage detrimental change
• Recognize change
• Evaluate change
• Implement change
• Continuously improve from lessons learned

CII References
• RS 6‐1 Project Control for Engineering
• RS 6‐2 Scope Definition and Control
• RS 6‐5 Project Control for Construction
• RS 6‐6 Work Packaging for Project Control
• SP43‐1 Project Change Management
• RS 165‐1 Owner’s Tool for Project Delivery and Contract
Strategy Selection
• IR 121_2 Planning for Startup
• RS 214‐1 Trade‐off between Cost & Schedule
• SD 28 Work Packaging for Project Control
• IR 204‐2 Project Priority Calculator
• IR 113‐2 Project Definition Rating Index (PDRI) –Industrial
Projects
• IR 242‐2 STAR Tool (Shutdown/Turnaround Alignment Review)Shutdown
Turnaround Alignment Review (STAR) Tool
• IR 155‐2 Project Definition Rating Index (PDRI) –Building
Projects