1 dr. george jergeas peng university of calgary project management specialization managing fast...

76
1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

Upload: lynne-stephens

Post on 23-Dec-2015

213 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

1

Dr. George Jergeas PEngUniversity of Calgary

Project Management Specialization

Managing Fast Track Projects: A Guide and Checklists

Page 2: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

2

Reference

This presentation is based on the European Construction Institute (ECI) - UK

ECI Manual

The Fast Track Manual

A guide to Schedule Reduction for Client and Contractors on Engineering and Construction Projects

Page 3: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

3

IntroductionDifferent Project Stages

Concept Stage * Development Stage Definition Stage * Design Stage * Procurement Stage Construction Stage * Commissioning Operation Stage

Key Issues

Agenda

Page 4: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

4

Introduction

Takes place more quickly than normal

A difficult and often stressful route to follow

There is no boundary between a normal project and a fast track project

Projects ranged from 4 - 36 months Schedule reduction 10 - 29% Cost increase 10 - 20%

Page 5: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

5

Reasons for Fast Track

Urgent requirements by client To maximize profit or limit loss

Imposed deadline Start of academic year End of current lease New legislation

Minimize disruption of services

Page 6: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

6

Objectives

To assist who are considering a fast track to make the right decisions

To help implement fast track strategy successfully

Page 7: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

7

Key Success factors

The calibre of individuals and their working relationships

The adequacy of the definition of the project

Strategy adopted and systems for implementation

The passion to succeed on the part of key participants

Page 8: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

8

“A managerial approach to the achievement of early project delivery, involving the application of innovations in the management of construction procurement and recent advances in the process that, bringing into play;

The integration of construction and design phases The involvement of the contractor in both the design and

construction phases Overlapping of work packages to enable construction of

sections of the project to proceed while the design for other sections is being progressed

The employment of the expertise of suppliers in design and construction

Kwakye, 1991

Definitions

Page 9: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

9

“Design and construction are overlapped and different sections of the plant are designed and built in parallel with significant additional risk due to the links between the design of different parts of the plant”

Turner, 1996

The reduction of the the schedule to the minimum practicable is the principal driving force for one or more stages of the project

Definitions

Page 10: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

10

Project StagesF

ast

Tra

ck P

roje

ctN

orm

al P

roje

ct

Page 11: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

11

Work Package Overlap Work packages are progressed in parallel Overlap the stages for each work package

Early Decisions Experienced judgement and empowerment Commence design before scope has been

defined Must accept wrong decisions

General Principles

Page 12: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

12

Integrated Project Team Main parties are combined into a single

organization and participate to the limit of their capability in achieving the project objectives

Partnering Benefits

Availability of additional expertiseAvoiding learning curve errorsReduction in the overall workloadCommitment to the project definition and scheduleDesign and construction developed together

General Principles

Page 13: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

13

Additional Staff More labour will be needed at peak period as a

consequence of scheduling activities in parallel More management resource will be needed to deal with

interface and progress issues arising from inter-dependencies between disciplines and between design, procurement and construction

Schedule Reduction Techniques

Project must be managed in an efficient manner making full use of project management and schedule reduction techniques

General Principles

Page 14: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

14

Additional Risks Decisions based on limited information,

cannot always be right first time

A structured and thorough risk management process needed

General Principles

Page 15: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

15

Advantages vs. Disadvantages

Advantages Time to market Commercial benefits Short schedule (at least 10%) Reduce time period for risk exposure

Disadvantages Additional risk factors, very limited alternatives Increased amount of PM, control, etc. Cost increase (at least 10 – 20%)

Page 16: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

16

Characteristics that Support StrategyOwnership

Client supportProject sponsor or champion

Stakeholder support and commitment Organization

Project team needs to be simple, clear and devoid of rigid hierarchy

If parent organization has a functional matrix structure, the functional line must be subordinate to the project management (task) line for the duration of the project team

Page 17: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

17

Desirable Team Characteristics Honesty - Openness - Trust Anticipation and avoidance of issues rather than

waiting for them to turn into problems Mutual support - issue resolution, coaching No blame culture Access to all parties, no communication barriers Lean organization, which aids communications

and speeds decision taking Full time members Authorized and empowered team members Decision making on the spot without referring

Characteristics that Support Strategy

Page 18: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

18

People and Relationships Technical competence Decisiveness - self starter - can do - flexibility Ability to forecast outcome and act accordingly See the big picture Willing to collaborate Enthusiasm Strong leadership Managerial competence Openness

Characteristics that Support Strategy

Page 19: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

19

Motivation Create a team culture that avoid de-motivation of

individuals who are keen to succeed, but are prevented by the organization, procedures,…..

Working part of a team, working equally hard and supporting each other

Appoint key positions to individuals known to be good motivators

Early identification and removal of under-performing individuals

Team building and partnering sessions Incentive/penalty clauses

Characteristics that Support Strategy

Page 20: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

20

Contractual arrangements Achieve win-win situation Pre-selected, preferred contractor Reimbursable basis, with incentives Lump-sum can also be used Partnering Up front agreement for payment for

changes and extras

Characteristics that Support Strategy

Page 21: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

21

Communications More informal communication - face-to-face Barriers should be removed - information

flows directly between the parties regardless of parent organization and level of hierarchy

Responsibility for communication lies with the individual who has made a decision

Frequency and progress meetings Frequent and concise reporting

Characteristics that Support Strategy

Page 22: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

22

Introduction•Time to establish the concept is NOT

recoverable•The opportunity to influence the

outcome falls off rapidly

People •Stakeholders (ALL Should be identified)•Integrated Team (Sponsor, Project

Manager & Senior Managers from different key players)

•Qualified personnel and motivated

Concept Stage

Page 23: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

23

Scope •Identify the real Goal and Objectives of

the client•Identify Critical Success Factors (CSFs)

Strategy•Fast tracking should be avoided unless

the client business benefits from early completion significantly and outweigh risks

•Contract strategy addressed and outlined

Concept Stage

Page 24: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

24

Business and PM Systems Business Planning

process for weeding out poor projectsA smooth transition from business process to PM processStage gates process

Communications Rapid transmission of informationIT systemsPublicity needs to be controlled

Risk ManagementCost and Risk

Determination of cost is difficultLimited industry information on fast track projectsAs accurate as possible estimate to help in the decision

to adopt a fast track strategy

Concept Stage

Page 25: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

25

Logistics Consideration to location of new asset in relation to:

Location of customers Source and availability of feedstocks, component parts Supply routes Transport security and cost of supply and products Existing assets Workforce skills and availability

Also should consider: Locations of parties involved

Client site - design office - contractor - contractors and sub-contractor - suppliers

Sources of construction equipment - material - supply routes and methods - Site access and controls

Concept Stage

Page 26: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

26

Definition Stage

IntroductionLack of adequate definition has arguably

been responsible for more project failuresExpenditure of 25% of the total design effortDesign will need to be progressed on those

elements of the definition that are sufficiently secure in order to feed information to construction at the earliest practicable time…

Quality of project definition is very often a casualty, with the potential for overruns of cost & time

Page 27: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

27

Definition Stage

PeopleClarity of objectives

• A clear focus on the objectives as agreed with stakeholders at the concept stage must be maintained in order to aid in the decision making process

Stakeholders• The significant stakeholders early identified should

continue to be involved, consulted and advised• Any other identified stakeholders should be involved ASAP

Integrated Team• If the project has not so far been led by the project

manager who will be responsible for seeing it through to beneficial use, that individual should be appointed at the beginning of the definition stage

Page 28: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

28

Definition StagePeople

Suitably qualified and experienced personnelThe team should not be selected only on their

technical and managerial competencies… but also on their ability to:

• Overcome the obstacles and succeed in achieving the project CSFs• Work with high level of uncertainty • Work flexibly outside the normal work boundaries• Co-operate with others for the benefit of the project

Project Scope It is essential that the project team have a clear

understanding of what has been agreed by stakeholders to be in the scope and what is outside the scope

Page 29: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

29

Definition StageScope

For technical definition consider:Fit for purpose (which may not be ideal sometimes)Fastest to manufacture/construct rather than

cheaperReuse of design from existing assetsModular designPre-fabrication of componentsMinimization of project scope – lean construction

approachReduction in the number of processing steps in a

manufacturing plant

Page 30: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

30

Definition Stage (Cont.)Scope

Reduction in the size of the assetElimination of non-essential elements of the designStandardization of layout or repeated unitsStandard / off-the-shelf componentsSimplification of design dependenciesSimplification of the build/construct/assemble processAvoidance of innovation/new/untried elements in generalEarly identification and ordering of long delivery itemsConstructability / Operability

This stage should also include:Arrangements for handover and commissioningProving and warranty test to be carried outDefinition of beneficial operation / use as the end point of the project

Page 31: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

31

Definition Stage (Cont.)

For the Overall Scope also consider:

Achievement of the overall project objectives, both what is to be done and how it is to be achieved

Whether phased completion would be acceptable

Arrangements for handover and commissioning Proving and warranty test to be carried out Definition of beneficial operation / use as the

end point of the project Project specific critical success factors

Page 32: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

32

Definition StageProject Strategy

It should take into account the same aspects which were considered in the concept and development stages that include:

• Work Breakdown Structure and the ability to spilt the project into relatively independent parts

• Willingness to take early decisions and accept competent solutions• Ability to keep options open until the last responsible moment• Elimination of hold points for the approval of design• Agreement that the project will accept the best decision in light of

the information available at the time• Acceptance of risk taking, and the impact of each risk• Delegation and empowerment of the team to promote decisions• Early applications of authorization and approvals• Availability of benefits / incentives for all project parties• Opportunities to allocate risk and share rewards

Page 33: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

33

Definition StageProject Management Procedures

Planning• It is essential that, as the definition evolves, work is scheduled on

the basis of achieving the earliest beneficial use of the finished asset

• It is also essential that interactive planning process advocated as a team building activity

Project Process• Based on the project organization, the project procedures may be

those of the client, the contractor or one of the other parties• Standard processes need to be modified to accommodate the

degree of overlap between various stages• Authority to approve modifications should be assigned ASAP• A project risk management system must be set up as part of the

project procedures• A good system for project documentation is essential

Page 34: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

34

Definition StageProject Management Procedures

Project controlCare is needed to ensure that previously rejected ideas are

not reintroduced at the definition stageThe use of Value Engineering / Constructability is essential

to enhance the decision making process

Project CommunicationsA good communications system need to be established and

maintainedThis could include: intranet, Extranet, Internet, Chat rooms,

Bulletin Boards, Event Calendars, Data Base, etc.The greater the level of integration in the sharing and re-

use of information the more that the communication system will support the project and enhance success

Page 35: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

35

Definition StageProject Management Procedures

Cost and risk Cost

Approval of cost will have to be given on a lower level of definition and with a wider tolerance on the estimate if the project is to proceed unhindered by the supply of funds

A cost estimate to within plus or minus 10% will not be obtained until the end of the design stage

It is recommended that a control estimate should be produced once all the necessary details are known

During this stage it will be necessary to address the potential cause of increased cost which may rise

Page 36: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

36

Workshop 1: Risks

List risks associated with the increased level of overlap between definition and design stages of a project.

Page 37: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

37

Solution: Workshop 1 1. Design and construction rework arising from lack of firm

definition2. Additional management effort at peak to control the project3. Use of additional resources arising from repeat work and

parallel working requiring more than optimal number of people

4. Essential additional items to achieve the CSFs which creep into the scope through lack of firm definition

5. Procurement against best/guaranteed delivery rather than lowest price

6. Additions to equipment orders as details evolve7. Additional expediting

Page 38: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

38

Solution: Workshop 1

8. Air freighting to speed delivery9. Incorrect initial material quantities which may

give rise to surpluses, or shortages which will need to be topped up at premium costs

10. Additional contingencies being included in quotations to cover unknown elements where there is no scope

11. High allowances in tender prices to cover penalties for defaults

12. Overtime and shift working resulting in higher cost and loss of productivity

13. Over design vs. waiting for detailed information

Page 39: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

39

Design StageIntroduction

The main purpose of this stage is to finalize the design requirements for the project

This stage requires a good understanding of the options for compressing the schedule

It requires the use of the most up-to-date proven computer aided design

People Clarity of objectives

The most elegant design is useless unless it is capable of being built safely and to time and budget, this has to be fully understood by the project team and senior management

Page 40: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

40

Design StagePeople

Stakeholders– The interests of all stakeholders should be kept under review

as the design progress so that interested parties can be kept up to date and involved at the earliest appropriate stage

Alliances– Establishment of a long-term relationship between the

companies and team involved helps to ensure a rapid start-up of the team involved on the project at each stage

Integrated Team– This stage requires the use of single design team

incorporating the expertise of all discipline and involving those responsible for subsequent stages of the project

– The design should be able to be “right first time” to minimize the number and duration of design reviews

Page 41: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

41

Design Stage Integrated Team

The team need to be supported with appropriate collaboration and communication systems

Team members should have clearly identified roles and objectives to eliminate duplication and inefficiencies

The team members need proper empowerment to promote rapid and effective decision making

Team members should be very competent and experienced in order to enhance the efficiency of the design

Project Scope Clarity of definition

The problem with some fast track projects is that detailed design has to proceed without total clarity of definition

It is a a matter of judgment as to which areas are sufficiently well defined to proceed without incurring too great risk

Page 42: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

42

Design Stage

Project Scope Extent of design

The extent of design details need to be defined from the beginning. Some elements of design has always been left to contractors on site to complete

There will be no benefit if the easy 95% of the project is fully detailed and the contractor is left to struggle with the difficult 5%

Design can only be based on the best option at the time given information available

Early involvement of contractors and suppliers is essential

Page 43: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

43

Design Stage

Over-designIn the absence of hard information it is necessary to

make more generous allowances than would normally be the case

The level of the over-design will depend on the extent of the un-known, the significance and perhaps the cost of the time

The design can be based on the maximum expected values e.g., weight of structure, pressure in system together with an appropriate safety factor rather than waiting until precise values can be calculated.

Example: There maybe little cost difference for the project as a whole if piling is 30% over-designed or 50% over-designed, but may allow site work to proceed well ahead before the accurate details of the superstructure can be determined.

Page 44: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

44

Design Stage

Design process The design sequence must be planned to ensure that

the schedule needs of construction drive the design process for the production at the right time of:

Design informationDrawingsDocumentsMaterialsEquipment

Long lead item data sheets and specifications will need to be produced out of sequence with the rest of the design.

Page 45: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

45

Design StageDesign process

Visual appearance and structural design may need to be compromised to achieve the fastest completion

Design option selection may be based on fastest to manufacture or build rather than lowest cost

Design will overlap with procurement and construction Design of work packages will be in parallel By-pass design areas with insufficient information and work to

assumptions – put experienced team members to work resolving the issues within the black box area

Incorporate constructability to ensure the optimum construction productivity

Design holds must be minimized as possible Design reviews must be carried out very thoroughly

Page 46: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

46

Design Stage

Design processDesign freeze

The overlap between definition, design and construction means that the number of unknowns remains higher than in a normal project while work is proceeding on the following stageOnly freeze part of the design which then

have to be accepted as constraints on the rest of the design

Page 47: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

47

Design StageStrategy

Simplicity and repetitionReduction in the number of processing steps in a manufacturing

plantReduction in the size of the assetElimination of non-essential elements of the design (de-scoping)Standardization of layout or repeated unitsSimplification of the build / construct / assemble process

Standard / Reusable / Off-the-shelf-designConsideration should be given to re-use design of an existing assetAn existing asset can be used to train both the constructors and

users of the new assetBase the design of the long delivery items on those that already

exist so that material procurement and fabrication can be started at the earliest possible time.

Page 48: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

48

Design StageStrategy

ModularizationIf the overall design can be structured as a series of units or modules then

there is the potential to introduce a number of schedule reduction approaches

Progress separate modules in parallel using separate design teams, suppliers, construction contractors …

Care to identify all the interdependencies between the separate modules and to ensure that these are taken into account as the design progresses.

If a number of the modules can be of similar design then should be possible to utilize the experience gained on early modules to improve the efficiency and time

In a process plant design as a number of parallel streams, rather than a single large stream – Smaller and off-the-shelf items

Consider the concept of sub-modules mounted within plant p may be interchangeable

Page 49: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

49

Design StageStrategy

Prefabrication / Pre-assemblyManufacture modules off the site and under factory controlled

conditionsCladding panels complete with windows, external fittings,

internal finishesFully finished air handling unitsSkid mounted plantFully finished bathroomsStandardized internal partitioningCompleted, tested, validated pilot/ process plant

Design tools• The low technology approach will often be found (on many projects) to be the quickest to

produce results• Consideration to the use of the latest, proven, design (CAD) and communication systems (IT)

Page 50: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

50

Design StageProject Management Systems and Procedures

PlanningPlanning of the design must be driven by the

requirements of later stages, mostly the construction stage.

Interactive planning which involves all members of the project team in problem solving and plan optimization.

Critical Chain project planning methodology has been credited with a significant reduction in project duration. The methodology results in the schedule contingency, which is normally hidden in the planned duration of each activity, being removed from the critical chain of activities and being replaced by a number of buffers of project contingencies that are provided to protect blocks of activities and are visible to the project team

Page 51: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

51

Design StageProject Management Procedures

Project ControlEffective project control is one of the keys to a successful fast trackIt must be a dynamic process with a very short cycle time so that

deviations are recognized and correctedDesign progress measurements should be at the simplest level Frequent up-dates of measurements / informationProgress information / reports are simple, concise and easily

available to relevant peopleMonitoring of key trends – flogging adverse trends and forecast out-

turns that are not in accordance with the schedule – including schedule float.

Exception reporting of items not completed to scheduleProgress against deliverables, milestones, CSFs and forecast out-

turnsEarned Value measurement

Page 52: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

52

Design Stage

Project Management Procedures Design Approval

To ensure that the client fully understands the detail of the assets being created and does not come up with additional or alternative requirements during procurement, construction or commissioning phases, it is necessary to have good design approval system which includes sign-off by the client.

Approval of the design sub-units that are the responsibilities of specialist vendors may need to take place on their premises to avoid delays

Design verificationVerification should commence as soon as possible to

limit the amount of re-work

Page 53: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

53

Design StageProject Management Procedures

Change Control• Effective change control system is essential, but is difficult to enforce

due to the increased risk of rework arising from the overlap of design and construction.

• Rapid rejection and approval will help to limit rework and minimize the impact of change

Communications• Good verbal communications need to be established between the

parties so decisions are known quickly and design can progress rapidly.

• Meetings should be kept to a minimum and focused on decision taking rather than communication of matters purely for interest.

• Communications within the team should take place as needed and not be restricted to a meetings timetable

• Communications with other parties outside the design team need to be kept up to speed with design details as they evolve

• Full use of IT systems for storage and communication of information

Page 54: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

54

Design StageProject Management Procedures

Constructability ReviewsThe integrated team is best placed to address

the issues which arise from Constructability considerations as the structure and detailed design are evolving.

Page 55: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

55

Design Stage

Cost and Risk Considerations The main risks in this stage are of increased cost

and delay due to sub-optimum design or incorrect design resulting in rework

The root cause can be either commencing detailed design before a comprehensive and firm definition has been agreed or from the early decision approach where there are interdependencies between the elements on which parallel working is taking place.

Page 56: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

56

Workshop 2: Risks at the Design StageList the risks associated with increased

overlap between design and construction stages

List the risks associated with increased overlap between design and procurement stages

Page 57: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

57

Workshop 2: SolutionList the risks associated with increased overlap

between design and construction stages Product which is to be manufactured on the plant fails its trials Failure of innovative designs as a result of putting them into

practice without sufficient development Failures of innovative methodologies as a result of hasty and

insufficiently considered application Increased level of rework as a result of:

Lack of firm definition Omissions as a consequence of out-of-sequence design Changes to design of fabricated items after delivery to site

Increased whole of life cost due to sub-optimum design Conflict

Page 58: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

58

Workshop 2: SolutionList the risks associated with increased

overlap between design and construction stages Increased capital cost arising from:

Modularization e.g., extra structural steel, extra joint/connections, greater precision

Over-design due to judgments based on limited information

Sub-optimum design through the use of standard designs or reuse of existing design

Problem at design and construction discipline interfaces

Page 59: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

59

Workshop 2: SolutionList the risks associated with increased overlap between design and procurement stages Lack of understanding of scope Design changes requiring revised contract and purchase orders

leading to delays or cost increases Errors or omissions in purchase of materials or equipment Reduced certainty of outcome for all project parameters: cost, time,

quality, safety Interdisciplinary design conflicts arising from out of sequence

working Problems with systems integration Inappropriate form of contract for those contracts which are let on

the basis of inadequate or incorrect design information Selection of inappropriate contractors Inappropriate allocation of risk

Page 60: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

60

Design StageLogistics

Design team locationThe design team is the center of the project team

activitiesIf the whole project team cannot be located together,

consideration should be given to locate them all together through the design stage

AccessArrangements should be made for design team to gain

access to project site as early as possible

Page 61: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

61

Construction Stage Introduction

Manage the additional risksAchieve high productivity from construction work forceGood understanding of options for compressing the schedule Good risk management and communication systemCoordination among all contractors and suppliers

People Clarity of objectives

The CSFs and what is expected of site staff in achieving these CSFs should be communicated to all construction staff

The key performance indicator against which construction performance is to be measured should be explained

The interests of the site workforce should be identified (working arrangements, working periods, flexibility and critical path activities)

Page 62: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

62

Construction Stage

People Integrated team

Single integrated team with one culture should be carried through to the construction site (it may be difficult with many suppliers)

Contracts between the parties involved need to be set up to promote integration and co-operation and to enable all parties to be available as and when demanded by the schedule.

The following elements have been noted as being helpful:• Effective management of the overall team effort• Contractual obligations for all parties to work co-

operatively regardless of direct contractual relationship• Design staff to be based on the construction site• Rapid response from engineering staff not site based

Page 63: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

63

Construction Stage Integrated team

• Vendors available to assist in the erection, site testing and pre-commissioning

• Dedicated staff to co-ordinate and expedite permits, clearness, etc.

• Commissioning staff used as construction inspectors• Client and commissioning staff involved in punch listing of

defects• Project facilitators to deal with hold ups, interface problems• Joint construction and commissioning punch listing team • Punch list rectification squad which is separate from the

normal construction squad to hit critical items while avoiding disruption to construction progress

• Testing as part of the installation process, not subsequent activity

Page 64: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

64

Construction StagePeople

Delegation and empowermentAuthorize and empower members of the project team to promote rapid and effective decision taking at the lowest competent level

Necessary numbers and skills must be made available to meet the demands of the schedule

Supervision ratios may need to be increasedSkilled and experienced staff are employedConstruction team motivation is essential to enhance success

• Remove disincentives and provide incentives– Schedule is challenging but realistic– Demonstrate management dedication and commitment– Remove underperforming staff from team– Simplify work methods– Avoid non-essential overtime– Supply design information, materials, equipment, support services

Page 65: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

65

Construction StageScope

A clear definition of scope in form of drawings and specifications, codes, standards and best practices.

Need to now what is required and how to deliver he scope

Strategy Construction plan

• Satisfy conditions for plant commissioning and handover• Provision of agreed documentation to following stages• Pull through of design, materials, equipment, resources• Inclusion of output from Constructability reviews• Utilization of latest proven methods and technical improvements• Detailed planning / control for critical path and special operations• Modularization and off-site fabrication• Locations of site facilities, workshops, etc.• Complete weld preps prior to installation of steelwork/pipes• Pre-painting of pipes and steel

Page 66: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

66

Construction Stage Site contracts

Number and arrangement of contractors should be optimized for speed of construction

Management and resources Number and skills supplied to meet demands of plan Competence in required project management and discipline skills Workforce clocking / accommodation / messing facilities close to

work faces

Materials and equipment Materials and consumables supplied to ensure no delay through

shortage Materials management system to supply materials and equipment

safely and efficiently to the work face Generous supply of construction equipment, personal protective Construction, commissioning and operational spares ordered with

equipment

Page 67: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

67

Construction Stage Quality assurance

Build quality in. Do the job right the first time (inspection does not improve quality)

Systems designed to minimize reworkEnsure that the latest revision is n use and previous

issues have been withdrawn

AccessGood, safe site accessGenerous lay-down, storage and work areas for pre-

fabrication, assembly and inspection/testingSafe and unobstructed access to the work face e.g.

scaffoldingMaximum use of mobile access devices such as “Cherry

Pickers” and scissor lifts

Safety, Health and Environment

Page 68: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

68

Construction StageProject Management ProceduresPlanning Construction requirements in terms of design, planning

approvals, contracts, materials, equipment services and documentation should be built into the project plan from the earliest practicable time.

Only in this way will it be possible for the preceding stages (Development, design, procurement) to organize their work so as to produce constructable design packages and constructable procurement packages

Construction plan should be based on the requirements for pre-commissioning and commissioning

Keep plan under review throughout the construction period.

Page 69: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

69

Construction StagePlanning

• Only the minimum number of essential activities on the critical path• Maximize benefits from prefabricated elements• Plan construction of repetitive units as a manufacturing process• Package work to allow multiple work fronts in parallel• Plan construction sequence so as to meet pre-commissioning and

commissioning needs• Base the schedule on shorter time intervals i.e. days or hours for critical

tasks• Site access arrangement• Establishment of site infrastructure• Work permit provision• Resource demands of the schedule – recruitment, induction, training• Move from area based to process system• Commence construction based on early design information• Key long lead and critical activities• Contingency planning for critical activities• Constructable work packages• Deferment of non-essential items until late in the program

Page 70: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

70

Construction StageProject Management Procedures

Project ControlControl must be a dynamic process with very short cycle time and include the following:

• Frequent monitoring of all trends in work progress• Frequent monitoring of changes• The use of simple progress indicator graphs (S-curve) on a daily

basis• Simple progress reports and easily available to relevant people• Exception reporting of items not completed to scheduled• Progress against deliverables, milestones, etc.• Earned Value measurement

Change Control• Design changes are to be avoided• If design change is essential, implement through change control

system• Resist verbal request at all costs

Page 71: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

71

Construction StageProject Management Procedures

CommunicationsCommunications should be:Simple – limited to what is necessaryPertinentTimelyUsing best available mechanism; face-to-face

Use of IT and 3D design tools to have a clear understanding of the product

Enable all parties to work together with an improved understanding of the design intent to avoid delays arising from misunderstandings and interdisciplinary conflicts

Page 72: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

72

Construction Stage

Cost and Risk Mechanism for controlling costs through efficient

use of labour and materials and the avoidance of rework including rectification of defective work

Strategies to achieve high productivity Multiple shift or night shift will add to cost It may be necessary for the client to provide

advance payment to enable contractors to commit materials and resources ASAP.

Balance between risk and reward

Page 73: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

73

Construction StageLogistics

Design support for construction should be located on site If not possible then effective IT system should be used to

improve communications and enable marked up drawings to be rapidly transmitted

Maintain the momentum of the construction site and avoid the need to move site labour on to less urgent work due to hold ups on the critical activities

Procurement support should be provided and include:• Documentation – covering both purchasing transaction and

documentation• Good receipt procedures• Inspections requirements• Quarantine of incorrect or defective goods• Storage and conservation• Handling and delivery to the work face• Surpluses• Returns of incorrect, defective materials and equipment

Page 74: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

74

Key IssuesWith Fast Track

Control is redefined from “monitoring results” to “making things happen”

Performance is maximizing value and minimizing waste at the project level

Value to the client is defined, created and delivered throughout the life of the project

Coordinating action through pulling and continuous flow as opposed to traditional schedule driven push with its over-reliance on central authority and project schedule to manage resources and coordinate work

Decentralizing decision making through transparency and empowerment (effective communication)

Page 75: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

75

Key Issues

Key organizational features include leadership, teamwork and trust

The construction requirement is the basis for planning the supply of design, documentation, materials, equipment and resources

Providing the wrong goods or service the right way is waste “do the right project before you do the project right”

Project control is “controlling the project”, not just retrospective monitoring

Good communication are needed to support decision making Eliminate ineffective time on site activities Significant attention to project with new technology

Page 76: 1 Dr. George Jergeas PEng University of Calgary Project Management Specialization Managing Fast Track Projects: A Guide and Checklists

76

Thank You

Managing Fast Track Projects: A Guide and Checklists