Project Management Track: Lean Projects, Cost Controls, Price Forecasts, & Resource Management -...
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Transcript of Project Management Track: Lean Projects, Cost Controls, Price Forecasts, & Resource Management -...
Project Controls Best Practicesfor the Energy Sector
Presented by Mark WhiteVice President, EcoSys
Agenda
• Introduction
• What Is Best Practice?
• Organization and Process Enabled
• Systems Enabled
• Founded in 2000 – Enterprise Control Systems
• Enterprise Project Controls Software ExpertsDesigners & Developers of original Primavera P6 and EcoSys EPC
• Implementation of Project Controls Best Practices
• Strong Technology and Implementation Partner Networks
• Global Standard for Leaders in Industry and Public Sector
Our Background
Representative Customers
What Is Best Practice?
• Consistent application of processes proven to achieve optimal results
• Not just one way of doing things – no instruction manual
• Lots of common practice regarding forecasting – no motherhood and apple pie today
• Defeated by inadequate organizational, process and systems infrastructure
Forward
Looking
Backward
Looking
Value
Adding
Commodities
Organization and Process
Organization and Process – Defeating Best Practice
8
Forward
Looking
Backward
Looking
Value
Adding
Commodities
PO coding not aligned with Estimate coding
Budget is summarized estimate, detail not visible
Contingencies are fixed percentages with minimal risk
basis. Leads to early, optimistic utilization
Offline change process not owned by project controls. No real-time visibility into Changes and Trends.
Schedule developed without consideration of cost needs. No
means of data exchange.
Without aligned data, Forecasting becomes a “black hole” of best guesses based on
gut feel.
Finance “allocation” rules not agreed with project controls. Actuals don’t
match budgets.
Progress reporting is non-standard and subjective
Organization and Process – Enabling Best Practice
Forward
Looking
Backward
Looking
Value
Adding
Commodities
CBS structure aligned with Estimate breakdown
Budget merely the final iteration of the estimating process, full traceability.
Contingencies based on objective risk assessment,
utilized appropriately
Integrated change control process (inc workflow and
DOA).
Real-time draw from contingency and impact on
Forecast
Schedule automatically feeding EcoSys to ensure
accurate time-phasing and progress
Full internal integration, ensuring all sub-processes
converge in the Forecasting module.
Forecasting accounts for various contracting and measurement methods.
Automated loading of Commitments and Actuals, enabled
by a compatible, common coding structure across the enterprise
Systems – Defeating Best Practice
SummaryFinancial
Obligations
ERP System
ProjectFinances
DetailedPerformanceObligations
Offline Tools
Manual DataEntry
Excel and Access
SAP, Oracle, etc
ERPAdd-On
Integrated
One-Way View
Visibility
Manual DataExtraction
EcoSysEPC
u w
v
y
x
z
u Due to ERP System inadequacies,
project financials are often managed at a high level
v To support forecasting and revenue
recognition processes, ERP add-ons are often used but are still serving the Finance function, not the Projects function
w Project managers are forced to use
offline tools to meet the performance obligations of their clients. These tools are many, varied, and uncontrolled. The costs of maintaining these tools is significant, albeit hidden.
x Project Managers waste excessive time
manually obtaining commodity data from the ERP, e.g., commitments and actuals
y Even worse, the results of their detailed
analyses must be double-keyed back into the ERP
z Finance and Business managers have no
visibility into the underlying systems and processes and must trust that projects are being managed in accordance with standards. Auditing is time-consuming and costly.
Systems – Defeating Best Practice
SummaryFinancial
Obligations
ERP System
ProjectFinances
DetailedPerformanceObligations
Offline Tools
Manual DataEntry
Excel and Access
SAP, Oracle, etc
ERPAdd-On
Integrated
One-Way View
Visibility
Manual DataExtraction
EcoSysEPC
u w
v
y
x
z
u Due to ERP System inadequacies,
project financials are often managed at a high level
v To support forecasting and revenue
recognition processes, ERP add-ons are often used but are still serving the Finance function, not the Projects function
w Project managers are forced to use
offline tools to meet the performance obligations of their clients. These tools are many, varied, and uncontrolled. The costs of maintaining these tools is significant, albeit hidden.
x Project Managers waste excessive time
manually obtaining commodity data from the ERP, e.g., commitments and actuals
y Even worse, the results of their detailed
analyses must be double-keyed back into the ERP
z Finance and Business managers have no
visibility into the underlying systems and processes and must trust that projects are being managed in accordance with standards. Auditing is time-consuming and costly.
Systems – Enabling Best Practice
SummaryFinancial
Obligations
ERP System
DetailedPerformanceObligations
Project Controls System
Excel and Access
SAP, Oracle, etc
ERP Add-Ons
Integrated
Two-Way View
Visibility
EcoSysEPC
u The ERP System need not accommodate
detailed project management processes, thereby avoiding costly ERP customization.
v No longer is there a need for the ERP Add-On
to support project finance management.
w Project managers manage projects in a
purpose built commercial tool that enforces standards across the entire projects portfolio. The tool is used willingly because it was built for best practice project controls.
x No longer do Project Managers waste time
extracting commodity data from the ERP because it’s updated daily via automated integration.
y Project financials roll up in the Project
Controls System and are automatically fed to the ERP at the required level of detail. No more double keying is needed.
z Finance and Business managers have FULL
visibility into the underlying systems and processes and can easily audit against published standards. This new visibility drives positive behaviors across all projects.
u
v
w
x y
z
Systems – Enabling Best Practice
SummaryFinancial
Obligations
ERP System
DetailedPerformanceObligations
Project Controls System
Excel and Access
SAP, Oracle, etc
ERP Add-Ons
Integrated
Two-Way View
Visibility
EcoSysEPC
u The ERP System need not accommodate
detailed project management processes, thereby avoiding costly ERP customization.
v No longer is there a need for the ERP Add-On
to support project finance management.
w Project managers manage projects in a
purpose built commercial tool that enforces standards across the entire projects portfolio. The tool is used willingly because it was built for best practice project controls.
x No longer do Project Managers waste time
extracting commodity data from the ERP because it’s updated daily via automated integration.
y Project financials roll up in the Project
Controls System and are automatically fed to the ERP at the required level of detail. No more double keying is needed.
z Finance and Business managers have FULL
visibility into the underlying systems and processes and can easily audit against published standards. This new visibility drives positive behaviors across all projects.
u
v
w
x y
z
