Effective Project Control using an Automated Gated Process Workflow and Project Scalability Dan Cohen Manager, Project Management Foundational Capability April 22, 2016 1
DTE Energy, a Diversified Energy Company with Utility and Non-Utility Businesses
DTE Energy Includes Both Electric and Gas Regulated Utilities with Operations Throughout Michigan
DTE Energy also Includes Multiple Non-Utility Energy- Related Facilities Throughout the United States
DTE Energy Non-Utility Energy-Related Facilities Include Gas Storage and Pipelines
MAJOR ENTERPRISE PROJECTS A Business Unit of DTE Energy Company DTE Energy Regulated Utilities Non-Utility Businesses DTE Gas Company Major Enterprise Projects DTE Electric Company
Major Enterprise Projects We are an industry-leading project management organization specializing in successful implementation and execution of large, complex projects. We take on tough challenges and help our customers meet their goals safely, efficiently, cost-effectively and on or ahead of schedule.
Major Enterprise Projects Structure Fossil, Environmental, Facilities Distribution Technologies & Renewables Nuclear Development & Other Fermi 2 Nuclear Power Plant DTE Gas Project Management Office Center of Excellence Quality Management Center of Excellence 8
Major Enterprise Projects Structure 280 Employees 1.5 Billion USD Budget 300 Projects 3.8% PMO Overhead applied to projects Presentation Title
Major Enterprise Projects History and Growth Small Project Management Office (PMO) begins to form Facilities projects comes to MEP with added employees 2006 2009 2007-2008 Organization grows and becomes Major Enterprise Projects focused on environmental projects Fermi 2 nuclear projects come to MEP with added employees 2011 2010 MEP achieves PMMM Level 3 and Smart Grid comes to MEP with added employees Michigan and out of state natural gas projects come to MEP with added employees Information Technology Service projects come to MEP with added employees 2013 2015 2012 MEP achieves PMMM Level 4 and APQC Best Practice PMO Award 2014 MEP begins to work outside of the company. PMO of the Year finalist. Awarded ISO 9001. Portfolio exceeded $1 billion. 10
MAJOR ENTERPRISE PROJECTS Project Management Office (PMO) Center of Excellence Project Controls Scheduling Estimating Contract Administration Project Management Finance and Budgeting Continuous Improvement Engineering Project Engineering Discipline Engineering Information Management Document Control Communication Training Safety Facilitation and Metrics Human Resources Administrative Support Supply Chain Construction Management
Gated Process 12
MAJOR ENTERPRISE PROJECTS Best Practice Solutions to Keep Projects on Track Benchmarking has shown that having a gated project management process is the best practice for ensuring sustainability and compliance to pre-specified processes which is the key to project success The MEP Gated Process Establishes Clear Pre-Specifications: Required Deliverables Deliverable Due Dates Approval Requirements and Roles The MEP Gated Process Contains Embedded Tests: Standardized Process for Submitting a Project for Gate Approval Projects Do Not Move to the Next Phase without Gate Approval
MEP Gated Process Gate 0 Authorization Gate 1 Initiation Gate 2 Conceptual Gate 3 Design Gate 4 Implementation Gate 5 Commissioning / Start up Gate 6 Closeout
Gate 0 Authorization Phase Deliverables All Projects must come through the Strategic Planning Process Gate 1 Initiation Phase Deliverables Project Manager is Assigned Gate 2 Conceptual Phase Deliverables Work Scope Document is approved Gate 3 Design Phase Deliverables *Complete Deliverable & Design Verification Checklist * Complete Project Work Scope Checklist *Design Deliverables completed per Scope, per Schedule Gate 4 Construction / Implementation Phase Deliverables Notification by Contractor of Substantial Completion is provided per Contract Gate 5 Commissioning & Start-Up Phase Deliverables Notice of Equipment in Service eform is completed Gate 6 Close-Out Phase Deliverables Project Closeout Phase-Process Checklist has been completed Project Owner is established Project Charter is approved by Customer and MEP Leadership Project Kick-Off meeting is completed *Meeting Minutes and Notes Issued Construction Criteria & Testing Criteria are completed Commission Readiness Approval is granted by Contractor and accepted by Start-Up Team per Contract *Project Closeout Checklist-Deliverables has been completed *Training and Warranty has been Accepted by Client Project Summary Report has been finalized per Scalability Document Partial Appropriation is approved Project Scalability Matrix is approved *Initial Baseline Schedule is completed *Initial Baseline Budget is completed *Staffing Plan is completed Baseline Schedule is completed Initial Punch List is developed per Contract Punch (warranty) List is Accepted by Client AAR Meeting is Completed Financial Analyst notifies Scheduling Supervisor of the project Initiation Meeting is completed and Meeting Notes Issues PDRI is completed if required through Scalability Matrix document * Baseline Budget is completed (Initial Cost Sheet) *Full Appropriation is granted Update Project Summary Report per Scalability Document Update Project Summary Report per Scalability Document MEP Roles & Responsibilities are Clarified Preliminary IRP with template review Complete Conceptual Phase Checklist, Initial Master Document List, Environmental Change Checklist Initial Project Summary Report per Scalability Document Construction Configuration Control as per Document Control Plan Key Stakeholders are identified Documentation Strategy is Established Equipment Checkout and Initial Operation Plan per Scalability Document Project is accepted by the Directors of the PMO Office and added to 1 & 5 yr Plans Completion of the Initiation checklist Initial Project Manage Plans to support design phase: - Project Management Plan - Quality Plan - Scope Management Plan - Procurement Plan - Stakeholder Engagement & Communication Plan - Risk Register - Risk Management Plan - Document and File Management Plan Project Management Plans are Finalized and Approved for the rest of the Project: - Safety Plan - Project Management Plan - Quality Management Plan - Scope Management Plan - Procurement Plan - Stakeholder Engagement & Communication Plan - Risk Register - Risk Management Plan - Document and File Management Plan Project Management Plans are Updated if required: - Safety Plan - Project Management Plan - Quality Management Plan - Scope Management Plan - Procurement Plan - Stakeholder Engagement & Communication Plan - Risk Register - Risk Management Plan - Document and File Management Plan Project Management Plans are Updated if required: - Safety Plan - Project Management Plan - Quality Management Plan - Scope Management Plan - Procurement Plan - Stakeholder Engagement & Communication Plan - Risk Register - Risk Management Plan - Document and File Management Plan Preliminary MEP Director sponsor ensures Gate 0 actions are completed Construction Status and Startup Readiness Plan per Scalability Document Communication is notified by Gate Administrator who will announce new project to all MEP System Startup and Integrated Testing Plan per Scalability Plan
2015 MEP PM & PC All Hands: Gated Process- Gate 0 - Authorization A. Awad 16
Project Scalability determining level of rigor Likelihood Low Unlikely Impact level Matrix Medium Likely High Almost Certain Impacts Schedule Low Little or no impact on the company's ability to operate if the project is behind schedule Medium Potential to affect company's ability to operate if the project is behind schedule High Certain to affect company's ability to operate if the project is behind schedule Cost Less Than $ 1,000,000 $ 1,000,000 to $ 10,000,000 Greater Than $ 10,000,000 Quality Minor impact to the quality of the company's operations Moderate impact to the quality of the company's operations Major impact to the quality of the company's operations Safety Low risk to personnel of physical injury requiring first aid. Moderate risk to personnel of physical injury requiring medical treatment. Significant/high risk to personnel of physical injury requiring hospitalization. Scope Low chance of scope changes Medium chance of scope changes High chance of scope changes Reputation Potential for minor reputational harm to DTE Energy Potential for moderate reputational harm to DTE Energy Potential for serious reputational harm to DTE Energy Operations Little or no impact on the company's ability to conduct business operations Minor impact on the company's ability to conduct business operations Major impact on the company's ability to conduct business operations Revenue No impact to company's ability to collect revenue Minor impact to company's ability to collect revenue Major impact to company's ability to collect revenue Environment No impact to surrounding environment Potential impact to surrounding environment Certain impact to environment Legal Little to no legal liability Potential minor legal liability Potential major legal liability Visibility Little or no visibility to company executives Moderate visibility to company executives High visibility to company executives Expertise Sufficient expertise to manage project exists Some expertise to manage project exists Insufficient expertise to manage project Complexity Small number of interfaces with structures/systems/components and/or people Medium number of interfaces with structures/systems/components and/or people Large number of interfaces with structures/systems/components and/or people Team Size Less Than 20 20 to 1000 Greater Than 1000
2015 MEP PM & PC All Hands Gated Process- Gate 1 - Initiation A. Awad H = High Process Rigor L = Low Process Rigor VL = Very Low Process Rigor R = Required 18
2015 MEP PM & PC All Hands Gated Process- Gate 2 - Conceptual A. Awad H = High Process Rigor L = Low Process Rigor VL = Very Low Process Rigor R = Required 19
2015 MEP PM & PC All Hands Gated Process- Gate 3 - Design A. Awad H = High Process Rigor L = Low Process Rigor VL = Very Low Process Rigor R = Required 20
2015 MEP PM & PC All Hands Gated Process- Gate 4 Construction/Implementation A. Awad H = High Process Rigor L = Low Process Rigor VL = Very Low Process Rigor R = Required 21
2015 MEP PM & PC All Hands Gated Process- Gate 5 Commissioning/Start up A. Awad H = High Process Rigor L = Low Process Rigor VL = Very Low Process Rigor R = Required 22
2015 MEP PM & PC All Hands Gated Process- Gate 6 - Closeout A. Awad H = High Process Rigor L = Low Process Rigor VL = Very Low Process Rigor R = Required N/C = No Changes 23
MEP Gated Process Key Players Process Owner Communicates with stakeholders; educates project managers Gate Administrator Schedules all Gated Process weekly meetings, publishes agenda, and forwards file folder location of Gated Process Checklist Package to the Knowledge Area Leads Project Manager Prepares and submits Gated Process Checklist Package to MEPGATE@dteenergy.com 24
MEP Gated Process Key Players Knowledge Area Lead Reviews pre-specified attributes that are within his/her knowledge area to ensure effective implementation of PMMM process Gate Committee The Gate Committee is comprised of the following directors: Program Office, Quality Management, Project Management, Engineering and Construction, and the Project Platform requesting Gate approval 25
Gated Process Weekly Timeline Old Manual Process (1 Week cycle) Tuesday - Project Manager submits required documents via email Wednesday Noon - Gate Administrator creates different public folders and inform Knowledge Area leads to start the review of submitted documents Friday - Knowledge Area Leads finish their review Tuesday Noon - Gated Process Owner and Administrator summarize the reviews and mitigate issue Tuesday Afternoon - Gated Process Steering Committee meet to pass / reject different projects and sign gate process checklists What issues do you see? 26
New Automated Gated Process (1-2 Day cycle) Tools epat (Electronic Project Activity Tracking) - Oracle Primavera Unifier workflow software Primavera - 3 Project Schedule Templates for High, Low, and Very Low process rigor projects, including required deliverables PMMM Document Tracker utilizing Primavera/Access Database Interface 27
epat Electronic Project Activity Tracking (EPAT) 28
29
Business Processes Programs and Projects 30
Contact Closure Business Process Workflow 31
Issues Business Process Workflow 32
Gate Review Business Process 33
Gated Process Workflow 34
35
Temple Substation - Distribution Operations Project 36
Project Gates 37
Email to Approver 38
Project Gate Submission for Approval 39
Approval List 40
Gate Review Business Process Workflow 41
Gate Review Trend Charts NEW Automated Process Average 1-2 days OLD Manual Process Up to 15 days to process 42
Knowledge Area Lead 43
Project Management Maturity Model Knowledge Area Leads The PMMM KAL role is responsible for one or more specific knowledge areas within the PMMM in supporting the objective to raise the project management capability across the Enterprise The KAL is the subject matter expert for their knowledge area and ensures their assigned PMMM knowledge area is comprehensive and accurately describes the actions required to achieve each PMMM assessment level. The PMMM KAL participates in the project Gate process by reviewing and approving knowledge area documents. Further, the PMMM KAL provides coaching and mentoring to MEP PMs and others in regards to their assigned knowledge area to support effective project management practices and support the attainment of project management certification. 44
Project Tracking Integration of Primavera and epat 45
2016 MEP PM & PC All Hands PMMM Document Tracker A. Awad 46
2016 MEP PM & PC All Hands PMMM Document Tracker Low Rigor A. Awad 47
2016 MEP PM & PC All Hands PMMM Document Tracker Very Low Rigor A. Awad 48
References DTE Energy https://www.newlook.dteenergy.com/wps/wcm/connect/dte-web/home Oracle Unifier https://www.oracle.com/applications/primavera/products/unifier.html Primavera https://www.oracle.com/applications/primavera/products/project-management.html
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