Building professionalism in project management 6/9/2008Small Project Presentation1 “The man in...

6/9/2008 Small Project Presentation 1

Building professionalism in project management

“The man in charge must concern himself with details. If he does not consider them important, neither will his subordinates. Yet “the devil is in the details.” It is hard and monotonous to pay attention to seemingly minor matters. In my work, I probably spend about ninety-nine percent of my time on what others may call petty details. Most managers would rather focus on lofty policy matters. But when the details are ignored, the project fails. No infusion of policy or lofty ideals can then correct the situation.”

•Admiral Hyman G. Rickover “Father of the Nuclear Navy”



A Small Project is Still a Big Effort

Life in the World of a Small Project Manager

June 9, 2008

Disclaimer - The material presented was compiled and developed by Paul Hohne based on decades of project management experiences and does not

necessarily represent the views of BPCP, CH2M or PMI.



Objectives for Session

• Develop basic understanding of gated project delivery process• Scope of a typical Small Project • How is a Small Project different• Roles and responsibilities of a Project Manager



Presentation

• Please ask any question that will help clarify the presentation

• Reference point for this presentation is a Small Project executed at the BPCP Refinery

• I will try to minimize technical & company jargon



Agenda

• Safety• Gated Process Overview• Small Project Overview• API Lid Replacement Project• Project Manager Roles and Responsibilities• PMI Overview• Session Wrap-up



Safety

Are you ready to Make a Difference this June?

The theme of the National Safety Council’s 2008 National Safety Month (NSM) observance in the United States has to do with making a difference in safety where you work—and everywhere you go!Throughout June 2008, National Safety Council activities will address safety issues around unintentional injuries and deaths in the American workplace, on the road, and in the home and community.

At CH2M, we will focus on the following topics:Week 1: June 2nd to June 6th—Pedestrian & Bicycle SafetyWeek 2: June 9th to June 13th—Driving SafetyWeek 3: June 16th to June 20th—Emergency Preparedness

Week 4: June 23rd to June 27th—Re-commit to Target Zero!



Gated Project Delivery Overview

The project management framework for BPCP is called the Capital Value Process (CVP). The CVP is a staged gate process whereby:

• Projects are divided into stages, each of which corresponds to a key decision point.

• Each stage has a Gate that must be passed, which forces the Gatekeeper and the Project Team to make appropriate decisions.

• These decisions and the rationale behind them are captured in a Decision Support Package (DSP).

• The activities required within each stage are those necessary to develop the information required for the Decision Support Package.



Typical Schedule of Events

IPAOperabilityReview

OperatePeer Review (PPE2)

DSP

Gate

DSP

Gate

DSP

Gate

DSP

GateAPPRAISE SELECT DEFINE EXECUTE OPERATEDSP

Gate*

Fill CVPRoles(e.g. SPA &Gatekeeper)

Setting BusinessPriorities VIP

CAC/ExCoAgreed PerformanceTargets

Plan VIPs

Agreed SOR

Agreed Select(Class III)Estimate

Pre-ReleaseRequest to ExCo

Estimate &Schedule RiskReview

Agreed Define(Class II)Estimate

SanctionFunding Request

Closeout

FinalAccounts

Holistic Risk/UncertaintyAssessment

Order ofMagnitude Estimate

AppraisePeer Review

Select PeerReview (includingContract & ProjectStrategy)

Holistic Risk/Uncertainty Update

FELPlanningMeeting

Pre-SanctionPeer Review

IPAPre-SanctionUpdate (e.g. FEL)

Holistic Risk/UncertaintyUpdate

CostChallenge

IPAPacesetter

PHSER 5

Mid-TermPeer Review

Peer Reviewfor Contracts>$100M Gross

Post ProjectEvaluation (PPE1)

IPACloseoutFEL

PlanningMeeting

TechnologySelection VIP

Mid-TermBudget Review

PHSER 1

PHSER 2 PHSER 3

PHSER 4

PHSER 6



Initial Capital Funding

Gates for Small Project

Expense Funding

Final Capital Funding

TIC Estimate Range +/- 50%


Appraise Select Execute

Choose the Right Project

Develop the Right Project Deliver the Right Project

Define Gate Operate Gate



Gate


Building professionalism in project managementProject Constraints

Cost

Cost

Time

Time

ScopeScope



Purpose of ProjectPurpose of Project

To replace the existing aluminum lids with permanent, cast-in place concrete lids that essentially eliminate VOC leaks into the environment.To replace the existing aluminum lids with permanent, cast-in place concrete lids that essentially eliminate VOC leaks into the environment.



Key PersonnelKey Personnel

Owner

• BP Cherry Point Refinery: Paul Van De Velde – Small Projects Program Manager

Designer

• CH2M HILL: Greg Grimm, Project Manager

Constructor

• MATRIX: John Skinner and Don Widen, Field Coordinators

Owner

• BP Cherry Point Refinery: Paul Van De Velde – Small Projects Program Manager

Designer

• CH2M HILL: Greg Grimm, Project Manager

Constructor

• MATRIX: John Skinner and Don Widen, Field Coordinators



Budget PerformanceBudget Performance

Total Project for both phases

Original Budget: $3.22 M

Final Installed Cost: $2.50 M

Engineering//BP Hours 2,900 Hours

Construction 26,000 Hours

Total Project for both phases

Original Budget: $3.22 M

Final Installed Cost: $2.50 M

Engineering//BP Hours 2,900 Hours

Construction 26,000 Hours



Original Aluminum API Separator Lids

Project Photos



Scaffolding

Project PhotosProject Photos



Rebar Installation




Rebar Wire-tie Gun




The Pour




The Finished Pour




New Concrete API Separator Lids




Aluminum Lid Washing and Recycling



Building professionalism in project management SummarySummary

• VOC monitoring revealed no releases to the environment

• Environmental and maintenance goals were achieved

• Safe: No accidents or near misses

• 28% under budget

• Completed ahead of schedule

• Environmentally responsible

• EPA Inspector felt that the lids were the “best in the industry for their purpose”

• Project has already received an Environmental Award from BP

• Stands as a reminder that innovative and fresh ideas are alive and well in our industry!

• VOC monitoring revealed no releases to the environment

• Environmental and maintenance goals were achieved

• Safe: No accidents or near misses

• 28% under budget

• Completed ahead of schedule

• Environmentally responsible

• EPA Inspector felt that the lids were the “best in the industry for their purpose”

• Project has already received an Environmental Award from BP

• Stands as a reminder that innovative and fresh ideas are alive and well in our industry!



• Why was this small project a success?



Characteristics of a Small Project

Large Small MicroCost > $2M <$500k

capital mixed expense

Duration 18 to 24 months Less than 12 months

Duration long enough for learning curve

Fast track, no time for tem development

Team >10,000 hours >2,000 hours

Full time dedicated Entirely part time

Functional specialists

Approach Upper management attention

Little attention until problem

Complete engineering Fit in field

Complex equipment Simple, less equipment

Standard procedures mixed Seat of the pants



OVERALL

• Manages and coordinates all engineering, procurement and construction activities for the project, including scope, cost and schedule

• Facilitates alignment on all project activities and identifies resources needed for the project

• Assumes lead role, develops team assignments • Develops status reports, with cost & schedule updates, and forecats

for completion • Coordinates all aspects of the project to make sure that all project

team members and project stakeholders are engaged and project deliverables are satisfied while maintaining cost and schedule

• The risk manager

Roles & ResponsibilitiesProject Manager Responsibilities



Project Manager Responsibilities

– HSSE• Ideally need members from each department on the project

team – health, safety and environmental groups• activities to assist in managing the risks

– P&ID reviews– HAZOP/LOPA/What If reviews– PHSSER reviews– JSA– The challenge is to schedule the meetings and insure

attendance by the key players




– technical assurance• design the system to be compatible with the process• evaluate options with ultimate goal of unit operation• design of the system needs to be reliable and maintainable• design the system to be constructible




– cost• TIC Cost estimate

– different types of estimate are appropriate depending on the engineering development

– establish basis of the estimate (assumptions)– estimates to establish project budgets

• Project controls & reports– periodically review the status of the project and forecast the

remainder of the project– BP relies on cash flow to optimize the value of it’s

businesses




– schedule• stage of project determines level of schedule development

– milestone (lowest level of detail)– critical path method helps to determine what constrains the

project– resource loaded critical path will allow you to progress the

project




– communication – one of (if not the most) important pieces of the project manager

• internal– project team communications on all aspect of the project

is critical– setting expectations and being able to use the skills of the

project team members to be successful (schedule, scope and cost)

– documenting key project activities (VIPs, Peer Reviews, Peer Assists, Risk Mitigations, HAZOP/LOPA Recommendations, etc.)

• external– project stakeholder communications on project status is

beneficial– capturing lessons learned to share– being able to make use of external resources to bring

value to the project



Project Execution Plan (PEP)

What

Why

When

How

Who

PEP is the process of defining the approach to be followed in executing a project. The PEP addresses the project controls, contract strategy, WBS etc. that will be utilized to execute and control the project.It is used to define and influence the most efficient execution strategy for the project at an early stage in order to lever maximum value. It ensures that the project is controlled and monitored.

It is produced and approved during FEL as soon as the project scope is known. The PEP is updated at the end of each stage.

The responsibility of producing the PEP is with the Project Manager and is published as a formal project document, which is subjected to review & is ultimately approved by the Owner.

Project Manager with input from the following: Estimator, Planner, Contracts Engineer, Procurement, Project Lead, Discipline Engineers etc



Constructability

This practice provides a systematic method that enables a project team to optimize the use of construction knowledge and experience in planning, engineering, design, procurement, fabrication and installation to achieve overall project and safety objectives.



Project management drives projects. So, it’s important that a project’s tasks and deliverables be properly identified, budgeted and monitored to ensure that productivity and completion will not adversely affect procurement and construction goals.

Deliverables are the building blocks for a successful project.

Closing Statement



Words from the Past

“We can’t solve problems by using the same kind of thinking we used when we created them. Doing more of the same actions is unlikely to lead to breakthrough results.” By Albert Einstein

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” By Charles Darwin

“The greatest problem in communications is the illusion that it has been accomplished.”

By George Bernard Shaw



If you assume that in our project effort, all team members are serious, dedicated, and capable of completing project tasks, then failure of a project must be the result of poor communications and a lack of relevant and important information.

A Thought to Ponder

Building professionalism in project management 6/9/2008Small Project Presentation1 “The man in...

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