3_Stephen_Mulva-Project Definition Rating Index

ECIs 21st Annual Conference 2010 & Global Construction Summit

Construction Project Management

Best Practice 2010

- A Springboard for the Next Decade

24 & 25 June 2010

Marriott Rive Gauche Hotel, Paris

Front-End Planning(ADPs, Scope Definition, and Alignment)

Stephen P. Mulva, Ph.D.Associate Director

Construction Industry Institute (CII)

Austin, Texas (USA)

[email protected]

June 24, 2010

FEP Saves Money

Owners Use of Front End Planning

-2.2%

6.4%

-15%

-10%

-5%

0%

5%

10%

15%

High Use(N=59)

Low Use(N=37)

Co

st

Gro

wth

= Standard Error of the Mean (SEM)

(90% Confidence Interval)

CII Cost Influence Curve

PERFORM

BUSINESS

PLANNING

PERFORM

FRONT END

PLANNING

EXECUTE

PROJECT

OPERATE

FACILITY

I

N

F

L

U

E

N

C

E

E

X

P

E

N

D

I

T

U

R

E

S

RAPIDLY

DECREASING

INFLUENCE

LOWINFLUENCE

MAJORINFLUENCE

EXPENDITURES

INFLUENCE

High

Low Small

Large

Hoop Diagram

Project Life Cycle

Start-up,

Operations,

Maintenance, &

Decommissioning

Effort

FeasibilityAnalysis

Conceptual

Planning

Project Execution

DetailedScope

Definition

(Detailed

Design &Construction)

TURNOVER,

START-UP &

OPERATIONS

FEASIBILITYFRONT END

PLANNING DETAILED

ENGINEERING &

CONSTRUCTION

Asset Development Process (ADP)

Industry Proprietary

Texacos BRAVE

Amocos Common Process

Phillips Rocket

General Industry Processes

CIIs Front End Planning (FEP) Process

Westneys Strategic Project Planner

PMIs Project Mgmt. Body of Knowledge

Insert Bitmap1.ppt here

(Texaco BRAVE)

Texaco BRAVE


(Phillips ROCKET)

Phillips Petroleum Rocket


(Amoco Common

Process Slide 1)


(Amoco Common

Process Slide 4)

Best Practices Use

CII Project Execution Roadmap

Determine

Resource

Requirements

and Sources

Identify Corpor-

ate Objectives

and Constraints

Develop Project

Concept

Develop a

Project

Definition

Package

Decide Whether

to Proceed

With Project

Startup

Facility

OPERATE

FACILITY

EXECUTE

PROJECT

PERFORM

FRONT END

PLANNING

PERFORM

BUSINESS

PLANNING

Business

Opportunity

Validated

Project

Concept

Project

Definition

Package

Decision to

Proceed

Select Project

Alternatives

Organize for

Front End

Planning

Construct

the Project

Procure

Equipment &

Materials

Develop

Detailed

Design

ImplementImprovements

Monitor

Operating

Conditions

Propose

Improvements

Evaluate

Operating

Conditons

Manage

Operation of

the Facility

Product

Completed

Project

Decommission

Project Execution

Front End Planning

Detailed Design

Procurement

Construction

Start-Up

Defined Business Need

Requiring Facility

Total Project

Budget Authorized

Design

Basis

Release of All

Approved

Drawings &

Specifications

Procurement Plan for

Engineered Equipment

All Engineered Equipment

Delivered to Site

Beginning of Continuous

Substantial Construction

Activity

End of Substantial

Construction Activity

Mechanical

CompletionCustody Transfer

to User /

Steady State

Operation

Project Deliverables

Fe

ed

ba

ckF

ee

db

ac

k

(12) INTEGRATED PROJECT DEFINITION

MODEL (IPDM)

(9) COST

MODEL

(10) TIME

MODEL

(8) 3-D

MODEL

(11)PRODUCTION

PROCESSMODEL

Owner &

Operations

Team

(2) PROJECTDEFINITION

PACKAGE (PDefP)

Construction

Team

(3) PROJECTEXECUTION PLAN (PEP)

(7) WORK BREAKDOWN STRUCTURE (WBS)

Integrated Product/Process Definition

(4) PROJECT TEAM DEFINITION

(PTD)

A/E Systems

Design Team

(5) PROJECTDESIGN

PACKAGE (PDesP) Product Definition

Vendors / Suppliers

Team in the

Supply Chain

(6) PRODUCTION PROCESS PLAN (PPP)

Process Definition

(1) PHYSICAL AND NON-PHYSICALCONTEXT OF THE PROJECT

(Especially Codes, Standards, and Regulationsand Site Characteristics)

Project SiteExternal

Parties

Project Definition

Project

Scope

Physical

Context of the

Project

PROJECT DEFINITION

Project

Risks

Non-Physical

Context of the

Project

Project

Stakeholders

Project

Objectives

ALIGNMENT

CII PDRI

CII Best Practices

Project Planning Phase

Alignment of Project Objectives

Team Building

Partnering

Front End Planning

Design Phase

Constructability

Materials Management

Construction/Startup Phase

Planning for Start-Up Zero Accidents Techniques

Project Life Cycle

Benchmarking Change Management &

Scope Control

Implementation of CII Products

Quality Management

Alignment Defined

Projects participants working in harmony to develop and meet a uniformly defined and

understood set of project objectives.

Elements of Alignment

CII Alignment Thermometer

Alignment Categories

Culture

Effective Project Leadership

Open, Effective Communications

Trust, Honesty, and Shared Values

Execution Processes

Appropriate Stakeholders Represented

Structured, Resourced Front End Planning Process

Suitable Reward and Recognition Systems

Information

Priority Between Costs, Schedule, and Features

Tools

Timely, Productive Team Meetings

Teamwork and Teambuilding Programs

Use of Planning Tools

Project Definition Rating Index

(PDRI)

PDRI: Project Definition Rating Index, Industrial Projects, Second Edition, IR113-2

Comprehensive checklist with 70

scope definition elements.

Identifies level of scope definition,

areas for improvement on industrial

projects.

Min score 70

Min recommended score 200

Max score 1000

IR 113-2 PDRI- Industrial

SECTION I

A. Manufacturing Objectives Criteria

B. Business Objectives

C. Basic Data Research & Development

D. Project Scope

E. Value Engineering

SECTION II

F. Site Information

G. Process/ Mechanical

H. Equipment Scope

I. Civil, Structural & Architectural

J. Infrastructure

K. Instrument & Electrical

SECTION III

L. Procurement Strategy

M. Deliverables

N. Project Control

P. Project Execution Plan

SECTION I

A. Business Strategy

B. Owner Philosophies

C. Project Requirements

SECTION II

D. Site Information

E. Building Programming

F. Building/Project Design Parameters

G. Equipment

SECTION III

H. Procurement Strategy

J. Deliverables

K. Project Control

L. Project Execution Plan

IR 155-2 PDRI- Buildings

PDRI Example

PDRI Benefits

A Checklist of Steps for Scope Definition

Standardized Scope Definition Terminology

Facilitation of Risk Assessment

Means to Monitor Progress During FEP

Aids Communication, Promotes Alignment

Means to Reconcile Differences

Training Tool

Benchmarking Tool

PDRI Scoring During FEP

0 Feasibility 1 2Detailed

ScopeDesign and

Construction3

CII Front End Planning Process

Concept

Review 1

(550 800)Review 3

(Below 200)

Review 2i

(300 450)Review 2

(450 600)

Parting Thoughts

Business

Strategy

Corporate

Planning

Program

Management

Project

Management

Risk

Mitigation

Change

Management

Change Management

Progress Reports

Program

Definition

Package

Implementable

Programs

Strategy Alignment

Economic/Risk Model

Implementable Programs

IT Strategy

Planning Policies

Political Considerations

Compliance Statements

Company Planning Objectives

Other External Risk Factors

Program Considerations

Corporate Guidelines

Implementable Projects

Progress Reports

Project

Planning

Asset

Development

Process

Program Objectives

Risk Model

Risk ModelProject Definition Package

Change

Management

Plans

Program

Objectives

Business

Strategy

Corporate

Planning

Program

Management

Project

Management

Risk

Mitigation

Change

Management

Change Management

Progress Reports

Program

Definition

Package

Implementable

Programs

Strategy Alignment

Economic/Risk Model

Implementable Programs

IT Strategy

Planning Policies

Political Considerations

Compliance Statements

Company Planning Objectives

Other External Risk Factors

Program Considerations

Corporate Guidelines

Implementable Projects

Progress Reports

Project

Planning

Asset

Development

Process

Program Objectives

Risk Model

Risk ModelProject Definition Package

Change

Management

Plans

Program

Objectives

European Construction Institute

www.europeanconstruction.eu

3_Stephen_Mulva-Project Definition Rating Index

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