$BILLION AGILE EXECUTING LARGE EPC/EPCM PROJECTS USING SCRUM VALUES AND PRINCIPLES

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1 EXECUTING LARGE EPC/EPCM PROJECTS USING SCRUM VALUES AND PRINCIPLES

2 WHAT PROBLEMS NEED SOLVING? Unclear priorities, roles Working in silos Lack of visible progress on what s important and why Lack of accountability to each other Lack of understanding of true state of project

3 SESSION OUTLINE Background on Gas Plants, EPC/M projects, and WHY Scrum? Applying Scrum to a Large ($1B) EPC Project Scrum Values, Roles, Artefacts, Events Results Applying Scrum to a Large ($3B) EPCM Program Approach to Multiple Organizational Cultures and Concurrent Projects Results Taking it another step

4 BACKGROUND NATURAL GAS PROCESSING PLANTS AND LARGE EPC/EPCM PROJECTS

5 WHAT S A GAS PLANT? Processing of Natural Gas Takes feed stock from surrounding wells and removes water, sand, sulphur and other hydrocarbons 400 million cubic feet per day

6 times ~5 every HOUR

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8 ENGINEERING, PROCUREMENT, & CONSTRUCTION PROJECT Engineering: Deliverables are detailed design and resultant drawings for equipment procurement and construction Procurement: Deliverables are POs resulting in materials on site when they are needed Construction: Deliverable is an operating gas processing plant built safely

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11 COST OF DELAY Delays in Reviews/Approvals things don t get engineered or purchased fast enough therefore they don t arrive on time therefore less time for construction higher risk of delayed ROI

12 WHAT PROBLEMS NEED SOLVING? Unclear priorities, roles Working in silos Lack of visible progress on what s important and why Lack of accountability to each other Lack of understanding of true state of project

13 SOUNDS LIKE THE 3 PILLARS OF SCRUM TRANSPARENCY, INSPECTION, AND ADAPTATION

14 APPLYING SCRUM VALUES/PRINCIPLES TO AN EPC PROJECT BUILDING A $B GAS PLANT

15 APPLYING SCRUM VALUES scrum.org

16 STACK RANK PRIORITIZATION OF ISSUES AND MINIMIZING WIP FOCUS

17 REGULAR FEEDBACK LOOPS ON HOW WE WORK TOGETHER COURAGE

18 OPENNESS TRANSPARENT ITERATIVE PLANNING AND INSPECTION

19 WORKING AGREEMENTS RESPECT

20 COMMITMENT TO GOALS / OUTCOMES NOT PARTICULAR SOLUTIONS COMMITMENT

21 APPLYING SCRUM ROLES

22 AN EXISTING ROLE CALLED THE PROJECT MANAGER RESPONSIBLE FOR REGULARLY ESTABLISHING THE PRIORITIES AND CONTEXT FOR THE TEAM PRODUCT OWNER

23 A NEW ROLE WE CALLED A TEAM FACILITATOR INITIALLY RESPONSIBLE FOR HELPING THE TEAM KEEP AN AGILE MINDSET AND COORDINATING THE TRANSPARENCY OF GOALS, PROGRESS AND IMPEDIMENTS. SCRUM MASTER

24 A GROUP OF MULTIDISCIPLINARY SPECIALISTS JOINTLY RESPONSIBLE FOR PRODUCING VALUABLE DELIVERABLES TO BE CONSUMED BY THE CONSTRUCTORS DELIVERY TEAM

25 APPLYING SCRUM ARTEFACTS Product Backlog Sprint Backlog Product Increment

26 PRODUCT (PROJECT ISSUE) BACKLOG

27 PRODUCT (PROJECT ISSUE) BACKLOG

28 SPRINT BACKLOG

29 PRODUCT INCREMENT

30 APPLYING SCRUM EVENTS Sprint Sprint Planning Daily Scrum Sprint Review Sprint Retrospective

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32 ITERATION PLANNING

33 DAILY STAND-UP

34 ITERATION REVIEW What we accomplished, what has been actualized in the schedule

35 ITERATION RETROSPECTIVE

36 RESULTS We were able to gauge progress based on empirical evidence rather than it s on track until it s not We were able to ensure that the team regularly understood what the project priorities were that superseded their respective discipline priorities Transferred techniques to site for Turnover

37 RESULTS Priority issue cycle time was reduced by a factor of 3. Reduced the overall Project Cycle time by 5-10% The project management team was able to maintain the original project schedule until the plant was sold.

38 APPLYING SCRUM VALUES/PRINCIPLES TO EPCM BUILDING A PROGRAM OF EPCM GAS PLANTS

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40 RESULTS Plant 1/3 G2S 38 days EARLY Plant 2/3 G2S 86 days EARLY Plant 3/3 G2S 167 days EARLY Program > 10% UNDER budget

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42 Design one build many Concurrent activities Execute vs Oversight

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45 APPROACH TO CULTURE Started as Traditional-based Execution and Scrum-based Oversight NOPE Attempt to shift to a new culture Mission, Vision, Values Patrick Lencioni Transition ownership of Scrum approach to EPC

46 APPROACH TO COMMUNICATION Scrum of Scrums approach to Program priorities / roadblocks Applying lessons to successive projects in program sprint to sprint 24 hr rule Excel, screen sharing, telephone still not as good as situation room

47 APPROACH TO WORK PRODUCT Iterative just enough model reviews Breakdown/breakthrough model Seeing the gap between what is predictable and what is desired Challenging the status quo Committing to exceed

48 THE RESULT OF APPLYING AGILE AND BREAKDOWNS IS THE REALIZATION THAT CHALLENGING THE STATUS QUO AND USING NON- LINEAR THINKING IS REQUIRED FOR SUCCESS. THIS DOESN T SHOW UP IN A GANTT CHART. Team Survey commentary

49 RESULTS Plant 1/3 G2S 38 days EARLY Plant 2/3 G2S 86 days EARLY Plant 3/3 G2S 167 days EARLY Program > 10% UNDER budget

50 THE FUTURE OF AGILITY IN EPC/M PROJECTS Source: Leighton Winkler

51 THE FUTURE IS MINDSET OVER MECHANICS

52 AN AGILE MINDSET MIGHT ALLOW US TO Automate the schedule progress update process to minimize the time it takes to understand progress [this is akin to continuous integration/testing] Iteratively review and update the schedule logic to ensure it is current and reflects today s reality [this is akin to release planning] Use a floating and fluctuating end date (as scope is usually fixed) to allow the impacts of changes to be seen immediately [this is akin to release planning]

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54 DECLARATION OF INTERDEPENDENCE (PMDOI.ORG) Agile and adaptive approaches for linking people, projects and value We increase return on investment by making continuous flow of value our focus. We deliver reliable results by engaging customers in frequent interactions and shared ownership. We expect uncertainty and manage for it through iterations, anticipation, and adaptation. We unleash creativity and innovation by recognizing that individuals are the ultimate source of value, and creating an environment where they can make a difference. We boost performance through group accountability for results and shared responsibility for team effectiveness.

55 IN CLOSING Scrum is about feedback loops; ITERATIVELY inspecting and adapting: What we work on How we work together Scrum CAN be applied outside of software with substantial benefit Scrum s success depends on modeling specific values and a growth mindset

56 MORE QUESTIONS? Simon Orrell, P.Eng. PMP CEC (403)

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