Introduction to Project Management
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1 Introduction to Project Management INTRODUCTION Enterprise Consultants International, Ltd. Enterprise Consultants International, Ltd.
2 INTRODUCTION Large projects in the oil and gas industry create a need for : improved project management and implementation strategies. a new generation of project managers International products and technologies Enterprise Consultants International, Ltd. Page 2
3 OBJECTIVES OF THIS COURSE Project Management method based on the Purdue Enterprise Reference Architecture (PERA) Life Cycle (see International approach to project management. Project management strategies and standards for large, remote projects. Enterprise Consultants International, Ltd. Page 3
4 WHAT IS PERA PROJECT MANAGEMENT? A structured Project Management method based on the PERA Enterprise Life Cycle Architecture Unique advantages: Professional Roles or Disciplines Strong Project Phasing Integrates Master Planning with Project Execution Defines Human and Information Systems roles Defines project participant roles Enterprise Consultants International, Ltd. Page 4
5 Introduction to Project Management Topics MODULE TOPIC 1 Introduction 2 Phasing 3 The Role of the Project Manager 4 Project Deliverables 5 Estimating & Cost Control 6 Project Scheduling 7 Project Procurement and Negotiation 8 Project Organization 9 The Role of Standards 10 Risk Management Enterprise Consultants International, Ltd. Page 5
6 Introduction to Project Management PROJECT MANAGEMENT CONCEPTS PROJECT PHASING (c) Enterprise Consultants International, Ltd. Page 1
7 PROJECT PHASES Project Phasing is similar for Owner and EPC, but differ during Implementation and Startup & Operations Handoffs between Owner and EPC are shown in Gating Diagram (page 10) Owner Perspective EPC Contractor Perspective 1. Evaluation 1. Feasibility Study Phase Master Planning 2. Selection 2. Conceptual Engineering 3. Definition (FEED) 3. Preliminary Engineering (+ long lead procurement) 4. Detail Engineering (+ procurement) 4. Implementation 5. Construction 5. Commission & Start-up 6. Operations & Maint. 6. Commission, Startup, Operations & Maintenance (c) Enterprise Consultants International, Ltd. Page 3
8 S-CURVE FOR A LARGE PROJECT DIVIDED BY PHASE Over Budget Behind Schedule (c) Enterprise Consultants International, Ltd. Page 4
9 AN ENTERPRISE CONSISTS OF PEOPLE, FACILITIES & SYSTEMS The previous diagram (S-curve) showed the combined expenditure during the project on People, Facilities and Control & Information Systems (c) Enterprise Consultants International, Ltd. Page 5
10 COMBINING THE CONCEPTS OF: Enterprise Components Project Phases (c) Enterprise Consultants International, Ltd. Page 6
11 EXPENDITURES ARE CONTINUOUS EVEN ACROSS PHASE BOUNDARIES (c) Enterprise Consultants International, Ltd. Page 7
12 DELIVERABLES Deliverable: an item, document, or drawing produced by the project team as agreed in the contract Each Project Phase has deliverables The goal of phasing is to manage information A gate is required prior to beginning the next phase (c) Enterprise Consultants International, Ltd. Page 10
13 WITH PHASED ENGINEERING, THE OWNER EXCHANGES DELIVERABLES WITH ENGINEERING AS BELOW Owner / Client By Phase Engineering (c) Enterprise Consultants International, Ltd. Page 11
14 GATE-KEEPER DECISION-MAKING AUTHORITY Upon completing the end-of-phase review, the gatekeeper (or committee) must have the authority to: Approve the project to continue Order changes in the project Suspend the project activity Recycle the project Cancel the project (c) Enterprise Consultants International, Ltd. Page 12
15 GATE-KEEPER DECISION-MAKING RESPONSIBILITIES Gate-keeper(s) must decide whether: the project still meets the overall company strategy deliverables from the completed phase are adequate to proceed the present cost estimate is sufficiently detailed the total final cost will result in an acceptable ROI (c) Enterprise Consultants International, Ltd. Page 13
16 PROJECT PHASING SUMMARY NOTES WHAT TO DO Make each phase discrete Review the project s progress and deliverables at the end of each phase (critical reviews after Phases 1, 2, & 3) Maintain quality of deliverables Communicate results of the review to the project team (c) Enterprise Consultants International, Ltd. Page 20
17 PROJECT PHASING SUMMARY NOTES WHAT TO AVOID 1. Allowing the division between phases to become blurred 2. Allowing the scope of work to change without proper approval 3. Skipping critical reviews in order to maintain a schedule 4. Allowing the interests of the Project Team to supersede the Owner s interests (c) Enterprise Consultants International, Ltd. Page 21
18 Introduction to Project Management PROJECT MANAGEMENT CONCEPTS: PROJECT DELIVERABLES Enterprise Consultants International, Ltd. Page 1
19 PROJECT DELIVERABLES A Deliverable is an item, document, or drawing produced by the effort of the project team as agreed in the contract Deliverables form the basis of cost estimates and schedules Some Deliverables represent intermediate goals between the project phases and the final goals of the project Project Payments are made when Deliverables are accepted Enterprise Consultants International, Ltd. Page 2
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