Olympic Delivery Authority* EVA 15 London 2012 Update 16 June * prepared by CLM Delivery Partner Ltd

Transcription

1 Olympic Delivery Authority* EVA 15 London 2012 Update 16 June 2010 * prepared by CLM Delivery Partner Ltd

2 What I ll cover today Status of the Programme EVM Foundations, Systems Architecture What has worked well? Lessons Learned EVM Developments Challenges to completion Q&A and feedback 2 Primary Substation: Commercial and Industrial Building of the Year 2010

3 Progress since last year July 2009 May

4 Main Venues Progress July 2009 to date IBC/MPC Handball Stadium Velodrome Aquatics 4

5 Aquatics Centre in Games configuration with temporary stands 5

6 6 July 2009

7 7 May 2010

8 8 Velodrome and BMX Track

9 9 July 2009

10 10 May 2010

11 11 Olympic Stadium in 2012 (original artist s impression)

12 12 July 2009

13 13 May 2010

14 14 Handball and Indoor Sports Arena in 2012

15 15 July 2009

16 16 May 2010

17 IBC/MPC in 2012 (original artist s impression) 17

18 18 August 2009

19 19 May 2010

20 Progress in numbers Over 10,000 workers on the (secure) Olympic Park Accident Frequency Rate is 0.17 Significant Environmental Incident Rate is 0.11 Programme Budget is 9.3bn Current ODA Budget is 7.3bn Games time scope of Olympic Capital Programme is on schedule and 60% complete Schedule Variance = - 1.5m, SPI = 1.00 Cost Variance = + 111m, CPI =

21 Earned Value Management Foundations Laid A stable but flexible Work Breakdown Structure Single data collection structure implemented through project teams and into Tier 1 contractors Fully integrated cost-loaded programme with fixed completion dates Earned Value as the common means of reporting progress over a diverse programme of projects Various funding sources and strict budgetary and change governance One week to turn around month-end results 21

22 Controls systems architecture through teams ODA, GOE, DCMS, etc CLM Exec, Project Teams Formal reporting deliverables Quality Assured Programme Dataset in CLM host systems Programme Controls Validation Checks Management info, reports and ad hoc queries Programme analysis & narrative Project assured dataset Oracle Actual costs P6 Schedule / logic COBRA Budget ARM Risk PCM Contract events Enable h&s Credit 360 Sustain Other Sys PT Themes Via Programme Controls & ODA Finance Project Assurance (upload PM team view, not undiluted Tier 1 dates / numbers) Checks assisted by project s own systems and trackers Functional Leads Assurance Project Analysis 22 Actual costs Schedule / logic Budget Risk Contract events h&s records Enviro & Sustain Other Priority Themes Tier 1 data inputs (in a mix of native and ODA systems)

23 What has worked well? Establishment and management of Programme WBS Establishment of Baseline early in programme (November 2007) Change control implemented as Baseline established Use of P6/COBRA/ORACLE to establish and control Performance Baseline Comprehensive Risk process agreed early, now embedded in culture and used to establish baseline budgets Robust AFC - integrated Change, Trend and Risk processes Project Status Report process and Monthly/Quarterly Project Reviews Use of Dashboards for communicating key performance trends to senior management 23

24 Lessons Learned Earned Value Don t assume 24 your way of doing things is better, or that it is the only way employees have all the required skills that management understand what you re trying to accomplish Provide right level of alignment and training to include: Customer s and stakeholder s organisations Early engagement with Contractors teams Keep checking fitness-for-purpose Everyone must work within the WBS structure Cost collection system fully keyed-in by coding Contractors keyed in at lower levels Spend the time and resources to get your Baseline right (and minimise heartache down the road) Run Services and Operations on Level of Effort (with performance measured against milestones and KPI metrics)

25 Lessons Learned Earned Value Don t assume your way of doing things is better, or that it is the only way Don t assume employees have all the required skills Don t assume that management understand what you re trying to accomplish Provide right level of alignment and training to include: 25 Customer s and stakeholder s organisations Early engagement with Contractors teams Keep checking fitness-for-purpose Everyone must work within the WBS structure Cost collection system fully keyed-in by coding Contractors keyed in at lower levels Be Flexible Adjust the systems deployed to suit the phase & nature of construction Spend the time and resources to get your Baseline right and minimise heartache down the road Run Services and Operations on Level of Effort, with performance measured against milestones and KPI metrics

26 Earned Value Management Developments As governance process has matured, and our customer s expectations have grown, we have progressively refined the Performance Management Baseline to provide more granularity / visibility: 26 Divide out Transformation scope to focus in on delivery of facilities required for Games Manage all activities to support Games time build ( 1.5bn of operations, site logistics, security, IT, concessionaires, etc) as level of effort and focused on real KPI performance drivers Agree appropriate EVM Techniques at WBS activity level to factor out noise Limiting baseline changes (and tracking against forecast where necessary) to maintain faith in numbers and controls methodology Formally signing-off the format of all major deliverables to create stability and consistency in reporting Deeper integration of EVM within the suite of Controls to sharpen time and cost forecasting (Quantities, Trends, Risks, Milestones, Float) know where you re going, target is no surprises

27 Mature Programme Controls Schematic Contract Admin (inc Procurement) Risks, Issues and Trends Change Control Approved Changes Governance Framework Key Meeting Contractor Contractor Contractor Contractor Common processes & tools defined in Contract Works Information Project Team Project Team Project Team Project Team Performance Data Performance Data Controlled Performance Management Baseline Schedule & Integration WBS Cost Engineering WBS Enterprise Accounting Data with Narrative Functions (Design, Town Planning, SHQE, etc) and Stakeholder defined priority themes Reporting hub for analysis Data with Narrative Tailored reports to support Governance decision points Key Meeting

28 Challenges to completion Retaining resources with the right skills and experience once the programme passes peak production Continue to work with contractors to convince them of the value of EVM for managing their business not just as a reporting requirement After 85% complete; move to light touch Earned Value Management using detailed quantities for project close out associated with: Physical works: robustness of Testing & Commissioning plans, progress on snagging Documentation: as-built drawings, consents and licenses for handover Commercial: Close of each contract, closing-in on AFC 28

29 Last thoughts Always try to influence the desired behaviour or decisions, avoid telling individual or teams what to do Be careful how and what you set as expectations, you can always increase them (and make everyone happy) Above all Keep it simple Good luck, and we still use EV as a management tool, it is much more than just a reporting method! 29

30 30 Q&A and feedback

31 Thank you Thank you The official Emblem of the London Organising Committee of the Olympic Games 31 and Paralympic Games Ltd is protected by copyright. London Organising Committee of the Olympic Games and Paralympic Games Ltd All rights reserved.