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The Big Problem of Small Projects Practical Solutions for Sustaining / Improving Production with Limited Resources for Capital Projects ECC Future Leaders Group SESSION 1 Abbey King Process Engineer BE&K Helen Mott Regional Inside Sales Mgr Jacobs Engineering Byron Elliott Engineering Manager Shaw Energy & Chemicals Jeff Dressel Manager of Business Development KBR

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Contributors Hayley Brown Bentley Ron Feken - DuPont Julie Lambert - ConocoPhillips Michelle McNichol Mustang Allison Miller Drobniak- Mustang Jeff Pratt - Flowserve Mauricio Villegas - Worley Parsons

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Outline What is a Small Project? with Interactive Questions Survey results Problems with small projects Solutions for small projects Outside the Box Ideas

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Audience Response Questions: Are you from an: Owner Contractor Supplier Other What do you consider to be a small project ($TIC)? $300 million

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Whats a Small Project: CII definition: $100,000-$2 million ECC FL Survey (May 2008) Daratech Survey (May 2008) < $1 million $1-10 million $10-300 million >$300 million

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Small Projects Definition Differs company to company Relative to the size of the company Fewer project controls Shifts based on total industry work-load Generally, no technical specialists Schedule may be shorter

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Large Projects vs. Small Projects Large Project Adherence to standardization Supports specialists Multiple company interface Difficult Communication Dedicated staff Big sticks Potentially large bonuses or penalties Small Project Flexible and fit-to-purpose More diverse skill-sets needed Single source Easier Communication (fewer parties) Part-time staff- High turn-over Little or no sticks Potentially small bonuses (if any) or penalties

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Audience Response Questions: Do you use employees with less than 5 years experience to manage jobs? Yes No What percentage of these employees manage multiple projects? 0-20% 20-40% 40-60% 60-80% 80-100%

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Small Project Survey Highlights 50% of companies use employees < 5 yrs experience to manage 88% of employees manage multiple projects. 43% of those manage 5 or more at a time. Does your company have a separate small projects Group: Owners: Yes 50% No 50% Contractors Yes 42% No 58%

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Audience Response Question: What is your Small Project Attitude? Necessary Evil? Bread and Butter? Foot in the Door of a client? Ignored? Overlooked? Strategic Priority?

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The Cost of Not Caring Small projects typically make up 25%-50% of your budgets / backlog (Higher for Operators - Lower for Contractors) Training ground for large projects Poorly executed small project today could mean loss of a large project tomorrow Risk to Company Reputation Impact on Company, Culture, and Morale

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Problems Project prioritization and adequate basic data Limited budgets vs. fast schedules People: experience and retention issues Managing multiple projects Gaining the attention of key stakeholders when required to ensure projects are properly scoped and executed with minimal rework. Flexibility of engineering and design resources to work multiple projects effectively. If resources are loaded full time on small projects, they become less cost effective and productivity actually declines because more hours are spent against limited budgets.

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Current Small Project Techniques* Preventing Staff Turnover Bundling Projects (Leverage knowledge and experience) Mentoring / Career development Multi-skilled Staff Defined roles / responsibilities / dedicated team Good Communication and Teamwork Recognition of value vs. cost of right staff Competitive compensation / bonuses / rewards Top management visibility and emphasis *taken from CII Small Projects Toolkit

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FL Survey Results: What tool / procedure has had the greatest positive impact on small projects in your industry? Six Sigma Project Controls (cost, schedule, material control) Integrated Project controls and execution software FEL Process Small project delivery model. This process will allow small projects to gain the discipline and rigor of large project delivery without being too onerous. Globalization of work methods, modern communication tools, cost estimating spreadsheets, archived lessons learned & client feedback

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Out-of-the-Box Ideas Virtual Office (Simulated work-place) Flee the cube nation! Engineering without the overhead Culture change for next generation Training opportunities for young leaders Empower decision-makers at each location (Project Management burn-out) Small projects to build teams for large projects

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Out-of-the-Box Ideas Small Projects as Innovators Training ground for new tools, methods and ideas Ideas moved to large projects with people Management to encourage and reward new ideas Other ideas Get young engineers out in the field early Provide alternate work location, making project harder to poach Collaborate with academia to start a small project training ground Hire students part-time during school year

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Future Small Project Compressor Revamp Brazil Late decision for award TIC $20MM Tight schedule to meet shutdown date

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World-Wide Engineering

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World-Wide Recruiting and Staffing Staffing Requirements 1 PM 2 PE 12 eng 20 designers Flexible Locations Recruiting Tools Facebook,MySpace, Second Life, Linked In You-tube videos Web Cams Video conferencing Virtual recruiting is anywhere, anytime without relocation. http://www.youtube.com/watch?v=JcXF1YirPrQ

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Heres our staff Virtual Hub PM USA India China Germany PE South Africa PE Australia JOBSITE Brazil

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How do we Communicate? Common Platforms Common Spaces Flexible Interfaces Web Based Tools (i.e. Skype) Real Time Documentation and Communication Common IT space, VPNs Messenger / Communicator Standardized Software Tools Web-based Common Spaces Translator Programs

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WORLD-WIDE COMMUNICATION Virtual project team Shared applications editing documents. Face-to-face meetings. Minimal office space. No travel. HP Halo Telepresence Solutions (Video Presentation 1 min.) Cisco WebEx Meeting Center (Video Presentation 2 min.)

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A Day in the Life of the Project 7:00 AM10:00 AM4:00 PM Virtual Meeting - USA, Brazil, and Germany Establish activities and confirm scope

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A Day in the Life of the Project Virtual Meeting between USA and China Document Transfer USA to China 5:00 PM7:00 AM

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A Day in the Life of the Project Problem in China PM still awake? Skype PE in Australia Problem Solved Proceed with work 5:00 PM 6:00 PM Zzzz..

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A Day in the Life of the Project 2:30 PM5:00 PM Mark-up Conference Call between China and India Transfer Drawings to India

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A Day in the Life of the Project Mark-up 6:00 AM6:30 PM Transfer Document from India to USA

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A Day in the Life of the Project 11:00 AM

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Q & A GUIDE What problems did you have that our great solutions would help.