Construction CPM Conference

Transcription

1 Designing an Effective Project Controls Team Construction CPM Conference January 23, 2014

2 Introduction All projects aren t created equal. A one-size-fits-all project controls team won t meet the needs of all projects. The right balance of people, processes, and technology are key to controlling projects.

3 Introduction This presentation illustrates a framework to design a project controls team based on project criteria. Then, we will review the Organization Tools you can use to support the design of an effective Project Controls Team: 1. Select and implement the right type of Roles and Responsibilities and Responsibilities tool. 2. An approach to assess the capabilities and competencies of your team and identify gaps early so you bring together the talent you need on every project. 3. Develop the Organization Structure to define how the team members work together and how they fit into the larger project organization.

4 Background ± Multi-national, quick time-to-market Manufacturer ± Different Project Types ð Large Capital Projects ð Small Maintenance Projects ± Simple Model / Framework ± Design Effective Project Controls Team

5 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

6 Pre-Project Planning Phase ± Timing is Key ± Project Foundation ± Proactive vs. Reactive ± Contribute to Success

7 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

8 The Project ± Not Created Equal ± How do they Differ? ± Complexity, Importance, Risk ± Project Score

9 Project Differences ± Beyond Project Dollar Value ± What Else is Important ð Production Capacity? ð Contract Strategy? ð Greenfield vs. Maintenance? ð Location?

10 Sample Project Criteria ± ± ± ± ± ± ± Project Dollar Value Production Impact Contract Strategy Importance of Success Project Type Visibility of Project Health Management Strength ± ± ± ± ± ± ± Importance to Management Proximity of Project Team Project Duration Estimated Risk of Change Estimated Volume of Documents Estimated Risk with Suppliers Project Location

11 Design Approach Project Controls Team ± Subjective Approach ± Quantitative Approach

12 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

13 Project Controls Team Subjective Design Approach ± Applying Subjective Approach ± Using Dollar Value, as Only Criteria ± Mid-size Capital Project ð Master Scheduler ð Part-time Cost Engineer ð Document Controller

14 Project Controls Team Subjective Design Approach ± Applying Subjective Approach ± Using Additional Project Criteria ± Mid-size Capital Project ð Master Scheduler ð Scheduler ð Part-time Full-time Cost Engineer ð Document Controller

15 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

16 Project Controls Team Quantitative Design Approach ± Simple Model ± Weights and Values ± Develop a Project Score ± Design an Appropriate Team the Roles ± Customized for your Company

17 Sample Projects Quantitative Design Approach ± #1 Scale-up Project ð Large scale retrofit and expansion project ð Launch a Pharmaceutical company from the research and development phase to full scale manufacturing ð The project value is $125 Million ð Project duration is two years

18 Sample Projects Quantitative Design Approach ± #2 Critical Shutdown Project ð Upgrade equipment and perform repairs ð Location is Puerto Rico ð The importance of the project is significant ð Risk is high ð Project dollar value is only $4 Million ð Duration is only 4 weeks

19 Project Score Quantitative Design Approach ± 1-Define Criteria ± 2-Prioritize the Criteria ± 3-Define the Characteristics ± 4-Assign a Value to the Characteristics ± 5-Calculate the Specific Project Score Complexity, Importance, Risk

20 1-Define Key Criteria

21 2-Prioritize the Criteria ± Dollar Size? ± Project Location? ± Project Duration? ± Proximity of Project Team? Importance Priority: Level 1 to 10 1: Lowest Priority 10: Highest Priority

22 2-Prioritized Criteria Criteria Priority Criteria Priority Project Dollar Value 10 Importance to Management 7 Affect on Production Area 10 Proximity of Project Team 6 Impact on Production Capacity 10 Project Duration 6 Contract Strategy 9 Estimated Risk of Change 6 Importance of Success 9 Estimated Volume Project Docs 4 Project Type 8 Estimated Risk with Suppliers 4 Need for Visibility of Project Health 8 Estimated Risk with GC 4 Management Strength 7 Project Location 3

23 3-Define Characteristics Project Dollar Value Project Dollar Value 150,000,000 Plus 50,000,000 to 150,000,000 10,000,000 to 50,000,000 5,000,000 to 10,000,000 Up to 5,000,000

24 3-Define Characteristics Impact on Production Capacity Impact on Production Capacity Yes No

25 3-Define Characteristics Proximity of Project Team Proximity of Project Team Dispersed International Dispersed Domestic Centralized in Same Location

26 3-Define Characteristics Importance to Management Importance to Management Extremely High High Normal Low

27 3-Define Characteristics Project Duration Project Duration 2 Years to 3 Years 1 Year to 2 Years 6 months to 1 Year Up to 6 months

28 3-Define Characteristics Contract Strategy Contract Strategy T&M GMP Unit Price Fixed

29 4-Assign Value to Characteristics ± Assign a Value to each Characteristic ± Simple Scale of 1 to 5 ± Value of 1: Lowest Need for Project Controls ± Value of 5: Highest Need for Project Controls

30 4-Assign Value to Characteristics Criteria Title Criteria Options Value Project Dollar Value 150,000,000 Plus 5 50,000,000 to 150,000, ,000,000 to 50,000, ,000,000 to 10,000,000 2 Up to 5,000,000 1 Impact on Production Capacity Yes 4 No 1 Project Type Greenfield + Retrofit 5 Greenfield 4 Equipment Installation Only 3 Site / Infrastructure Work 1

31 5-Calculate the Project Score ± Select the Criteria and Associated Characteristic for the Project ± Multiply by the Criteria s Priority ± Adds up to the Project Score

32 5-Calculate the Project Score ± The Scale-up Project is worth $125 Million. The Project Dollar Value score is 40 (10 x 4) ± The Shutdown Project is only worth $4M, so the Project Dollar Value is only 10 (10 x 1) Criteria Title Criteria Options Value Prior Project Dollar Value 150,000,000 Plus ,000,000 to 150,000, ,000,000 to 50,000, ,000,000 to 10,000, Scale-up Score 40 Shutdown Score Up to 5,000,

33 5-Calculate the Project Score Criteria Title Criteria Options Value Prior Project Dollar Value 150,000,000 Plus ,000,000 to 150,000, ,000,000 to 50,000, ,000,000 to 10,000, Shutdown Score Up to 5,000, Affect on Production Area Yes No 2 10 Scale-up Score 40 Criteria Title Criteria Options Value Prior Management Strength Low Medium 3 7 High 1 7 Importance to Management Extremely High High 3 7 Normal 2 7 Low 1 7 Scale-up Score 21 Shutdown Score 28 Impact on Production Capacity Yes 4 10 No Contract Strategy T&M GMP Unit Price 3 9 Fixed 2 9 Importance of Success Extremely High High 4 9 Normal 3 9 Low 2 9 Project Type Greenfield + Retrofit 5 8 Greenfield 4 8 Equipment Installation Only Site / Infrastructure Work 1 8 Need for Visibility of Project Health High Normal 3 8 Low Proximity of Project Team Dispersed International 5 6 Dispersed Domestic Centralized in Same Location 1 6 Project Duration 2 Years to 3 Years Year to 2 Years months to 1 Year 4 6 Up to 6 months 2 6 Estimated Risk of Change High Low 1 6 Estimated Volume High 4 4 of Project Documents Medium Low 1 4 Estimated Risk with Suppliers High 4 4 Low Estimated Risk with GC High Low Project Location International 4 3 Domestic

34 5-Calculate the Project Score ± Scale-up Project Score: 437 ± Shutdown Project Score: 361

35 Project Controls Team the Roles Project Controls Team Large Med Small Project Controls Manager x x Cost Engineer x x x Master Scheduler x x x Junior Scheduler x Document Control Lead x Document Control Admin x x x Project Coordinator x x

36 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

37 Roles and Responsibilities ± Next Step... ± How Team Works Together ± Pre-Project Planning Phase ± On-going Refinement ± Documented and Communicated

38 Matrix Types ± RAM Responsibility Assignment Matrix ± RACI Responsible, Accountable, Consult, Inform

39 RACI Responsibilities (Work, Task, Deliverable) Project Manager Project Controls Manager Master Scheduler Cost Engineer Define WBS C A Develop Baseline Schedule I A R Create Project Budget I A R Monthly Project Report I A C C R Responsible Performs the work to accomplish project requirements and goals. A Accountable Approves the work of the person who is responsible for performing the work and has the authority to make decisions and assign resources. C Consult Provides recommendations and input to improve work. I Inform Receives information about the status of the work being performed. 3 Reference A Guide to the Project Management Body of Knowledge (PMBOK Guide ). PMI Standards Committee, Project Management Institute ISBN )

40 Project Controls Team Scale-up Project Project Controls Team Project Controls Manager Large x Cost Engineer x Master Scheduler x Junior Scheduler x Document Control Lead x Document Control Admin x Project Coordinator x

41 Roles and Responsibilities ± Clarify Expectations ± Interactions with Others ± Optimize Team

42 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

43 The People ± What do we need? ± What do we have? ± Where are we short? ± Train or not train? ± Filling externally ± Developing internally ± Team compatibility

44 The People What Do We Need? ± Determine required competencies based on project requirements ð Criteria and Characteristics ð RAM / RACI ð Subjective Assessment

45 The People What Do We Have? ± Evaluate competencies of currently available resources ± Evaluate capabilities of currently available resources ± Competencies + Capabilities = Default Condition

46 The People What Do We Have? ± Example Situation for Scheduler ð Know the required knowledge, skill or ability ð Understand the situation ð Evaluate

47 The People What Do We Have? ± Example - Develop practice for evaluating

48 The People Where Are We Short? ± Example Skill, Knowledge and Ability Score

49 The People Where Are We Short? ± Example Skill, Knowledge and Ability Score

50 The People Train Or Not Train? ± Assess best strategy to fill gaps ð Time ð Cost ð Market ± Develop and execute plan to fill gaps

51 The People Filling Externally ± Interviews ± Compatibility ± Timing ± Cost ± External resources not available

52 The People Develop Internally ± Develop training program ð Content ð Who does training ð Timing ð Expectations ð Execute ð Monitoring and follow-up

53 The People Ongoing Development ± Team growth and expansion ð What do we need now? ð What do we need in the future? ð Now and future trade-off

54 The People Team Compatibility ± Playing well with others ð Sometimes the answer ð Sometimes not the answer ± Seating layout ± Hours ± Individual needs for satisfaction

55 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

56 Team Formation ± Definition ± Organization Structure ± Pre-project Planning Phase

57 Project Controls Team Scale-up Project Project Controls Team Project Controls Manager Large x Cost Engineer x Master Scheduler x Junior Scheduler x Document Control Lead x Document Control Admin x Project Coordinator x

58 Organization Structure Scale-up Project

59 Agenda ± Pre-Project Planning Phase ± The Project ± Subjective Approach ± Quantitative Approach ± Roles and Responsibilities ± The People ± Team Formation ± Key Takeaways

60 Key Takeaways ± Pre-Project Planning Phase ± Put More Emphasis on People ± Implement a Simple Model ± Implement the Right Organization Tools ð Roles and Responsibilities ð Team Evaluation ð Team Formation ± Align and Assess and Modify

61 Contact Information Stephanie Thatcher President Orcas Project Controls Barry Meyers, PMP, PSP Managing Director Enterprise Solutions Orcas Project Controls