Transcript Pre-project Planning
Pre-Project Planning
Lessons from the Construction Industry Institute Michael Davis, P. Eng, PMP Ontario Power Generation
Objectives
Demonstrate the importance of pre-project planning Describe a pre-project planning process Review some CII planning tools
Construction Industry Institute
The Construction Industry Institute
Unique organizational model – 90 to 100 corporate members – Owners and contractors Conducts research into best practices for construction projects – Research done by academics under guidance of member project teams Assists in moving the research into practice with implementation tools All information is available in the public domain:
www.construction-institute.org
What is a Best Practice?
A process or method that,
when executed effectively
, leads to superior project performance
CII Validated Best Practices
Pre-Project Planning Alignment Constructability Design Effectiveness Materials Management Team Building Partnering Planning for Startup Quality Management Change Management Disputes Resolution Zero Accidents Techniques
Value of Best Practices:
Project Cost Performance
Project Budget Factor vs. Practices Use Index
Cost Category: Greater than $5MM N=73 N=74 N=71
By Practices Use Index
N=75
Value of best practices:
Project Schedule Performance
Project Schedule Growth vs. Practices Use Index
Cost Category: Greater than $5MM N=60 N=55 N=65
By Practices Use Index
N=57
“Best” Best Practices
Pre-project planning Change control Planning for startup
Impact of Best Practices
Average Project Cost :
$79MM
Average Project Duration :
99Weeks
Pre-Project Planning
Pre-Project Planning
That part of the project planning process that takes place before the project is authorized to proceed Sometimes called “front-end loading” An Owner responsibility Expect to spend 10-25% of engineering cost (up to 8% of total project cost) Assign project manager and best staff Have key stakeholders represented
Opportunity for Influence
Low Major Influence Rapidly Decreasing Influence Influence Influence Scope Definition Expenditures Conceptual Analysis and R&D Pre-Project Planning Basic Data and Scoping Project Production Authorization Engineering and Procurement Construction Engineering Complete Project Life Cycle Turnover and Start-up
Pre-Project Planning
Provides a basis for: Informed business decisions – “doing the right project” Efficient project delivery – “doing the project right”
Select Team Draft Charter Prepare Pre-Project Planning Plan
CII Pre-Project Planning Process
Analyze Technology Evaluate Site(s) Prepare Conceptual Scopes and Estimates Evaluate Alternatives Analyze Project Risks Document Project Scope and Design Define Project Execution Approach Establish Project Control Guidelines Compile Project Definition Package
Business Case
Make Decision
ORGANIZE FOR PRE-PROJECT PLANNING SELECT PROJECT ALTERNATIVE(S) DEVELOP A PROJECT DEFINITION PACKAGE DECIDE WHETHER TO PROCEED WITH PROJECT
Key Elements
Organize for pre-project planning – Create a team – Draft the charter for the planning phase – Plan the planning: tasks, deliverables, responsibilities, etc. Select the alternative – Alternatives definition – Technology – Site/location – Conceptual scopes, estimates (-30 to +50%) – Evaluate the alternatives Financial High level risk analysis
Key Elements
Create project definition package – Project objectives and priorities – Scope and preliminary design – Risk analysis – Project delivery strategies – Project Execution Plan Prepare the business case Submit package to approval authority Decide whether to proceed or not
Project Objectives
Establish project success criteria - define the target Sets priorities consistent with business drivers Basis for decision making Refined as project progresses
Scope Definition - Estimating Accuracy
+100% Pre-Fund Authorization Conceive Develop Post Fund Authorization Execute +15% +5%
Most Probable Cost
-2.5% -10% -50%
Order of Magnitude Release Definitive (Detailed)
Elements of a Project Execution Plan
Objectives & priorities Scope and deliverables Execution and delivery strategies Organization and responsibilities Cost estimate & budget Schedule & milestones Permitting Safety, quality, environment Procurement Communications Project controls Risk assessment and management Commissioning and start up Closeout
Sponsor’s Role
Verify correctness of objectives, priorities and scope Review and concur with execution strategy Verify assignment of roles & responsibilities Concur with estimate and contingency Concur with schedule milestones and completion date Verify acceptability of project controls and change management process Review and concur with risk management plan Approve significant changes to the PEP
Planning Outcomes
Understanding of objectives & priorities Optimum solution identified Project scope defined what’s in/out Alignment of participants and stakeholders Knowledge of risks Credible estimate and schedule Sound business case Effective, achievable project plan
Pre-Project Planning Tools
PDRI
Project Definition Rating Index Planning assessment tool developed by CII through extensive research Evaluates how well the scope definition and pre project planning has been carried out
Provides an early indication of the probability of project success
Validated - tested against actual project results Proven effective on both small and large projects
PDRI
70 elements are grouped into 3 categories: – Basis of decision/scope (50%) – Front-end definition/preliminary design (42%) – Execution approach (8%) Each element is given a weighted score The more completely an element has been addressed, the
lower
its score. (Similar to golf: lower is better) Maximum score of 1000 Score of <200 correlates with more successful projects
PDRI Score sheet
Project Alignment
Common, clearly understood set of project objectives is in place All project team members working toward the same set of objectives
Alignment Tool
Developed from workshops, surveys, interviews Involved more than 100 experienced individuals at all levels 66 alignment issues analyzed for correlation with project success over 20 projects 10 key factors identified
Factors Affecting Alignment
Stakeholders are appropriately represented on the project team Project leadership is defined, effective, and accountable The priority between cost, schedule, and required project features is clear Communication within the team and with stakeholders is open and effective Team meetings are timely and productive
Factors Affecting Alignment
The team culture fosters trust, honesty, and shared values The pre-project planning process includes sufficient funding, schedule, and scope to meet objectives The reward and recognition system promotes meeting project objectives Teamwork and team building programs are effective Planning tools (e.g., checklists, simulations, and work flow diagrams) are effectively used
Alignment Thermometer
Questionnaire
Alignment Thermometer
Other CII Resources
Team Building Partnering Change Management Project Delivery and Contracting Strategies Zero Accident Techniques
Benefits of Pre-Project Planning
Fewer scope changes Increased predictability of cost & schedule Better definition of risks Reduced probability of project failures Improved operational performance Better achievement of business goals
By the time a project is released, the conditions for its success or failure are essentially established.