fast track project.ppt

download fast track project.ppt

of 76

Transcript of fast track project.ppt

  • 7/27/2019 fast track project.ppt

    1/76

    1

    Dr. George Jergeas PEng

    University of Calgary

    Project Management Specialization

    Managing Fast TrackProjects: A Guide and

    Checklists

  • 7/27/2019 fast track project.ppt

    2/76

    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

  • 7/27/2019 fast track project.ppt

    3/76

    3

    Introduction

    Different Project StagesConcept Stage *

    Development Stage

    Definition Stage *

    Design Stage *

    Procurement Stage

    Construction Stage *

    Commissioning

    Operation Stage

    Key Issues

    Agenda

  • 7/27/2019 fast track project.ppt

    4/76

    4

    Introduction

    Takes place more quickly than normal

    A difficult and often stressful route to follow

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

    Projects ranged from 4 - 36 months

    Schedule reduction 10 - 29%

    Cost increase 10 - 20%

  • 7/27/2019 fast track project.ppt

    5/76

    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

  • 7/27/2019 fast track project.ppt

    6/76

    6

    Objectives

    To assist who are considering a fast track tomake the right decisions

    To help implement fast track strategysuccessfully

  • 7/27/2019 fast track project.ppt

    7/76

    7

    Key Success factors

    The calibre of individuals and their workingrelationships

    The adequacy of the definition of the project

    Strategy adopted and systems for

    implementation

    The passion to succeed on the part of key

    participants

  • 7/27/2019 fast track project.ppt

    8/76

    8

    A managerial approach to the achievement of earlyproject delivery, involving the application of innovationsin the management of construction procurement andrecent advances in the process that, bringing into play;

    The integration of construction and design phases

    The involvement of the contractor in both the design andconstruction phases

    Overlapping of work packages to enable construction of sections

    of the project to proceed while the design for other sections isbeing progressed

    The employment of the expertise of suppliers in design andconstruction

    Kwakye, 1991

    Definitions

  • 7/27/2019 fast track project.ppt

    9/76

    9

    Design and construction are overlapped and differentsections of the plant are designed and built in parallelwith significant additional riskdue to the links

    between the design of different parts of the plantTurner, 1996

    The reduction of the the schedule to the minimum

    practicable is the principal driving force for one or morestages of the project

    Definitions

  • 7/27/2019 fast track project.ppt

    10/76

    10

    Project Stages

    F

    astTrackProject

    Norma

    lProject

  • 7/27/2019 fast track project.ppt

    11/76

    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

  • 7/27/2019 fast track project.ppt

    12/76

    12

    Integrated Project TeamMain parties are combined into a single organization

    and participate to the limit of their capability in

    achieving the project objectivesPartnering

    BenefitsAvailability of additional expertise

    Avoiding learning curve errors

    Reduction in the overall workload

    Commitment to the project definition and schedule

    Design and construction developed together

    General Principles

  • 7/27/2019 fast track project.ppt

    13/76

    13

    Additional StaffMore labour will be needed at peak period as a

    consequence of scheduling activities in parallel

    More management resource will be needed to dealwith interface and progress issues arising from inter-dependencies between disciplines and betweendesign, procurement and construction

    Schedule Reduction Techniques

    Project must be managed in an efficient mannermaking full use of project management and schedulereduction techniques

    General Principles

  • 7/27/2019 fast track project.ppt

    14/76

    14

    Additional Risks

    Decisions based on limited information,

    cannot always be right first time

    A structured and thorough risk management

    process needed

    General Principles

  • 7/27/2019 fast track project.ppt

    15/76

    15

    Advantages vs. Disadvantages

    Advantages

    Time to market

    Commercial benefits

    Short schedule (at least 10%)

    Reduce time period for risk exposure

    DisadvantagesAdditional risk factors, very limited alternatives

    Increased amount of PM, control, etc.

    Cost increase (at least 10 20%)

  • 7/27/2019 fast track project.ppt

    16/76

    16

    Characteristics that Support

    Strategy

    OwnershipClient support

    Project sponsor or champion

    Stakeholder support and commitmentOrganization

    Project team needs to be simple, clear and devoid ofrigid hierarchy

    If parent organization has a functional matrixstructure, the functional line must be subordinate tothe project management (task) line for the duration ofthe project team

  • 7/27/2019 fast track project.ppt

    17/76

    17

    Desirable Team Characteristics

    Honesty - Openness - Trust

    Anticipation and avoidance of issues rather than

    waiting for them to turn into problemsMutual support - issue resolution, coaching

    No blame culture

    Access to all parties, no communication barriers

    Lean organization, which aids communications andspeeds decision taking

    Full time members

    Authorized and empowered team members

    Decision making on the spot without referring

    Characteristics that Support

    Strategy

  • 7/27/2019 fast track project.ppt

    18/76

    18

    People and RelationshipsTechnical competence

    Decisiveness - self starter - can do - flexibility

    Ability to forecast outcome and act accordingly

    See the big picture

    Willing to collaborate

    EnthusiasmStrong leadership

    Managerial competence

    Openness

    Characteristics that Support

    Strategy

  • 7/27/2019 fast track project.ppt

    19/76

    19

    MotivationCreate a team culture that avoid de-motivation of

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

    Working part of a team, working equally hard andsupporting each other

    Appoint key positions to individuals known to be goodmotivators

    Early identification and removal of under-performingindividuals

    Team building and partnering sessions

    Incentive/penalty clauses

    Characteristics that Support

    Strategy

  • 7/27/2019 fast track project.ppt

    20/76

    20

    Contractual arrangements

    Achieve win-win situation

    Pre-selected, preferred contractorReimbursable basis, with incentives

    Lump-sum can also be used

    PartneringUp front agreement for payment for changes

    and extras

    Characteristics that Support

    Strategy

  • 7/27/2019 fast track project.ppt

    21/76

    21

    Communications

    More informal communication - face-to-face

    Barriers should be removed - informationflows directly between the parties regardless ofparent organization and level of hierarchy

    Responsibility for communication lies with the

    individual who has made a decisionFrequency and progress meetings

    Frequent and concise reporting

    Characteristics that Support

    Strategy

  • 7/27/2019 fast track project.ppt

    22/76

    22

    Introduction Time to establish the concept is NOT

    recoverable

    The opportunity to influence theoutcome falls off rapidly

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

    Manager & Senior Managers fromdifferent key players)

    ualified ersonnel and motivated

    Concept Stage

  • 7/27/2019 fast track project.ppt

    23/76

    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 earlycompletion significantly and outweighrisks

    Contract strategy addressed andoutlined

    Concept Stage

  • 7/27/2019 fast track project.ppt

    24/76

    24

    Business and PM SystemsBusiness Planningprocess for weeding out poor projectsA smooth transition from business process to PM process

    Stage gates process

    CommunicationsRapid transmission of informationIT systemsPublicity needs to be controlled

    Risk Management

    Cost and RiskDetermination of cost is difficultLimited industry information on fast track projects

    As accurate as possible estimate to help in the decision toadopt a fast track strategy

    Concept Stage

  • 7/27/2019 fast track project.ppt

    25/76

    25

    Logistics Consideration to location of new asset in relation to:Location of customersSource and availability of feedstocks, component parts

    Supply routesTransport security and cost of supply and productsExisting assetsWorkforce skills and availability

    Also should consider:

    Locations of parties involvedClient site - design office - contractor - contractors

    and sub-contractor - suppliersSources of construction equipment - material - supply routes and

    methods - Site access and controls

    Concept Stage

  • 7/27/2019 fast track project.ppt

    26/76

    26

    Definition Stage

    Introduction

    Lack of adequate definition has arguably beenresponsible for more project failures

    Expenditure of 25% of the total design effort

    Design will need to be progressed on thoseelements of the definition that are sufficientlysecure in order to feed information to construction

    at the earliest practicable timeQuality of project definition is very often a casualty,

    with the potential for overruns of cost & time

  • 7/27/2019 fast track project.ppt

    27/76

    27

    Definition Stage

    People

    Clarity of objectives A clear focus on the objectives as agreed with stakeholders at

    the concept stage must be maintained in order to aid in thedecision 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

  • 7/27/2019 fast track project.ppt

    28/76

    28

    Definition Stage

    People

    Suitably qualified and experienced personnel

    The team should not be selected only on theirtechnical and managerial competencies but alsoon 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 clearunderstanding of what has been agreed bystakeholders to be in the scope and what is outside thescope

  • 7/27/2019 fast track project.ppt

    29/76

    29

    Definition Stage

    Scope For technical definition consider:

    Fit for purpose (which may not be ideal sometimes)

    Fastest to manufacture/construct rather than

    cheaperReuse of design from existing assets

    Modular design

    Pre-fabrication of components

    Minimization of project scope lean constructionapproach

    Reduction in the number of processing steps in amanufacturing plant

  • 7/27/2019 fast track project.ppt

    30/76

    30

    Definition Stage (Cont.)

    ScopeReduction in the size of the asset

    Elimination of non-essential elements of the design

    Standardization of layout or repeated units

    Standard / off-the-shelf componentsSimplification of design dependencies

    Simplification of the build/construct/assembleprocess

    Avoidance of innovation/new/untried elements ingeneral

    Early identification and ordering of long deliveryitems

    Constructability / Operability

  • 7/27/2019 fast track project.ppt

    31/76

    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 beachieved

    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 endpoint of the project

    Project specific critical success factors

  • 7/27/2019 fast track project.ppt

    32/76

    32

    Definition Stage

    Project Strategy

    It should take into account the same aspects whichwere considered in the concept and developmentstages that include:

    Work Breakdown Structure and the ability to spilt the project intorelatively 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 theinformation 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

  • 7/27/2019 fast track project.ppt

    33/76

    33

    Definition Stage

    Project 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 teambuilding 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 ofoverlap between various stages

    Authority to approve modifications should be assigned ASAP

    A project risk management system must be set up as part of the projectprocedures

    A good system for project documentation is essential

  • 7/27/2019 fast track project.ppt

    34/76

    34

    Definition Stage

    Project Management Procedures

    Project control

    Care is needed to ensure that previously rejected ideas are notreintroduced at the definition stage

    The use of Value Engineering / Constructability is essential toenhance the decision making process

    Project Communications

    A 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 ofinformation the more that the communication system will

    support the project and enhance success

  • 7/27/2019 fast track project.ppt

    35/76

    35

    Definition Stage

    Project Management Procedures

    Cost and risk

    Cost

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

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

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

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

  • 7/27/2019 fast track project.ppt

    36/76

    36

    Workshop 1: Risks

    List risks associated with the increased level ofoverlap between definition and design stages of

    a project.

  • 7/27/2019 fast track project.ppt

    37/76

    37

    Solution: Workshop 1

    1. Design and construction rework arising from lack offirm definition

    2. Additional management effort at peak to control theproject

    3. Use of additional resources arising from repeat workand parallel working requiring more than optimalnumber of people

    4. Essential additional items to achieve the CSFs which

    creep into the scope through lack of firm definition5. Procurement against best/guaranteed delivery rather

    than lowest price

    6. Additions to equipment orders as details evolve

    7. Additional expediting

  • 7/27/2019 fast track project.ppt

    38/76

    38

    Solution: Workshop 1

    8. Air freighting to speed delivery

    9. Incorrect initial material quantities which may give riseto surpluses, or shortages which will need to be

    topped up at premium costs10. Additional contingencies being included in quotationsto cover unknown elements where there is no scope

    11. High allowances in tender prices to cover penalties fordefaults

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

    13. Over design vs. waiting for detailed information

  • 7/27/2019 fast track project.ppt

    39/76

    39

    Design Stage

    Introduction

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

    This stage requires a good understanding of the optionsfor compressing the schedule

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

    PeopleClarity of objectives

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

  • 7/27/2019 fast track project.ppt

    40/76

    40

    Design Stage

    People

    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 stageAlliances

    Establishment of a long-term relationship between the companies andteam involved helps to ensure a rapid start-up of the team involvedon 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 forsubsequent stages of the project

    The design should be able to be right first time to minimize thenumber and duration of design reviews

  • 7/27/2019 fast track project.ppt

    41/76

    41

    Design Stage

    Integrated TeamThe team need to be supported with appropriate collaboration

    and communication systems

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

    The team members need proper empowerment to promoterapid and effective decision making

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

    Project ScopeClarity of definition

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

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

  • 7/27/2019 fast track project.ppt

    42/76

    42

    Design Stage

    Project Scope

    Extent of design

    The extent of design details need to be defined from thebeginning. 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 fullydetailed and the contractor is left to struggle with the difficult5%

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

    Early involvement of contractors and suppliers is essential

  • 7/27/2019 fast track project.ppt

    43/76

    43

    Design Stage

    Over-design

    In the absence of hard information it is necessary to makemore generous allowances than would normally be thecase

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

    The design can be based on the maximum expected valuese.g., weight of structure, pressure in system together with

    an appropriate safety factor rather than waiting untilprecise values can be calculated.

    Example: There maybe little cost difference for the projectas 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 bedetermined.

  • 7/27/2019 fast track project.ppt

    44/76

    44

    Design Stage

    Design process

    The design sequence must be planned to ensure that theschedule needs of construction drive the design processfor the production at the right time of:

    Design information

    Drawings

    Documents

    Materials

    Equipment

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

  • 7/27/2019 fast track project.ppt

    45/76

    45

    Design Stage

    Design process

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

    Design option selection may be based on fastest tomanufacture 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 andwork to assumptions put experienced team members towork resolving the issues within the black boxarea

    Incorporate constructability to ensure the optimumconstruction productivity

    Design holdsmust be minimized as possible

    Desi n reviews must be carried out ver thorou hl

  • 7/27/2019 fast track project.ppt

    46/76

    46

    Design Stage

    Design process

    Design freeze

    The overlap between definition, design andconstruction means that the number ofunknowns remains higher than in a normalproject while work is proceeding on the

    following stageOnly freeze part of the design which then have tobe accepted as constraints on the rest of thedesign

    D i St

  • 7/27/2019 fast track project.ppt

    47/76

    47

    Design StageStrategy

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

    plant

    Reduction in the size of the asset

    Elimination of non-essential elements of the design (de-scoping)

    Standardization of layout or repeated units

    Simplification of the build / construct / assemble process

    Standard / Reusable / Off-the-shelf-design

    Consideration 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 asset

    Base the design of the long delivery items on those that alreadyexist so that material procurement and fabrication can be started

    at the earliest possible time.

    D i St

  • 7/27/2019 fast track project.ppt

    48/76

    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 ofschedule reduction approaches

    Progress separate modules in parallel using separate design teams,

    suppliers, construction contractors

    Care to identify all the interdependencies between the separatemodules and to ensure that these are taken into account as thedesign progresses.

    If a number of the modules can be of similar design then should bepossible to utilize the experience gained on early modules toimprove 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 maybe interchan eable

    D i St

  • 7/27/2019 fast track project.ppt

    49/76

    49

    Design StageStrategy

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

    controlled conditions

    Cladding panels complete with windows, external

    fittings, internal finishesFully finished air handling units

    Skid mounted plant

    Fully finished bathrooms

    Standardized internal partitioning

    Completed, 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

  • 7/27/2019 fast track project.ppt

    50/76

    50

    Design Stage

    Project Management Systems and ProceduresPlanning

    Planning of the design must be driven by the requirements oflater stages, mostly the construction stage.

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

    Critical Chain project planning methodology has been creditedwith a significant reduction in project duration. Themethodology results in the schedule contingency, which is

    normally hidden in the planned duration of each activity, beingremoved from the critical chain of activities and being replacedby a number of buffers of project contingencies that areprovided to protect blocks of activities and are visible to theproject team

    D i St

  • 7/27/2019 fast track project.ppt

    51/76

    51

    Design StageProject Management Procedures

    Project ControlEffective project control is one of the keys to a successful fast

    track

    It must be a dynamic process with a very short cycle time sothat deviations are recognized and corrected

    Design progress measurements should be at the simplest level

    Frequent up-dates of measurements / information

    Progress information / reports are simple, concise and easilyavailable to relevant people

    Monitoring of key trends flogging adverse trends and forecastout-turns that are not in accordance with the scheduleincluding schedule float.

    Exception reporting of items not completed to schedule

    Progress against deliverables, milestones, CSFs and forecast

    out-turns

  • 7/27/2019 fast track project.ppt

    52/76

    52

    Design Stage

    Project Management ProceduresDesign Approval

    To ensure that the client fully understands the detail of theassets being created and does not come up with additional or

    alternative requirements during procurement, construction orcommissioning phases, it is necessary to have good designapproval system which includes sign-off by the client.

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

    avoid delaysDesign verification

    Verification should commence as soon as possible to limit theamount of re-work

  • 7/27/2019 fast track project.ppt

    53/76

    53

    Design Stage

    Project Management ProceduresChange Control

    Effective change control system is essential, but is difficult to enforce dueto the increased risk of rework arising from the overlap of design andconstruction.

    Rapid rejection and approval will help to limit rework and minimize theimpact 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 takingrather than communication of matters purely for interest.

    Communications within the team should take place as needed and not berestricted to a meetings timetable

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

    Full use of IT systems for storage and communication of information

  • 7/27/2019 fast track project.ppt

    54/76

    54

    Design Stage

    Project Management Procedures

    Constructability Reviews

    The integrated team is best placed to address the

    issues which arise from Constructabilityconsiderations as the structure and detailed designare evolving.

  • 7/27/2019 fast track project.ppt

    55/76

    55

    Design Stage

    Cost and Risk Considerations

    The main risks in this stage are of increased cost anddelay due to sub-optimum design or incorrect designresulting in rework

    The root cause can be either commencing detaileddesign before a comprehensive and firm definition hasbeen agreed or from the early decision approach wherethere are interdependencies between the elements on

    which parallel working is taking place.

    Workshop 2: Risks at the

  • 7/27/2019 fast track project.ppt

    56/76

    56

    Workshop 2: Risks at the

    Design Stage

    List the risks associated with increased overlapbetween design and construction stages

    List the risks associated with increased overlapbetween design and procurement stages

  • 7/27/2019 fast track project.ppt

    57/76

    57

    Workshop 2: Solution

    List the risks associated with increased overlapbetween design and construction stagesProduct 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 andinsufficiently 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

  • 7/27/2019 fast track project.ppt

    58/76

    58

    Workshop 2: Solution

    List the risks associated with increased overlapbetween design and construction stages

    Increased capital cost arising from:

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

    Over-design due to judgments based on limited information

    Sub-optimum design through the use of standard designs orreuse of existing design

    Problem at design and construction discipline interfaces

  • 7/27/2019 fast track project.ppt

    59/76

    59

    Workshop 2: Solution

    List the risks associated with increased overlapbetween design and procurement stagesLack of understanding of scope

    Design changes requiring revised contract and purchase orders

    leading to delays or cost increasesErrors 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

    workingProblems with systems integration

    Inappropriate form of contract for those contracts which are let onthe basis of inadequate or incorrect design information

    Selection of inappropriate contractors

    Inappropriate allocation of risk

  • 7/27/2019 fast track project.ppt

    60/76

    60

    Design Stage

    Logistics

    Design team location

    The design team is the center of the project team activities

    If the whole project team cannot be located together,

    consideration should be given to locate them all togetherthrough the design stage

    Access

    Arrangements should be made for design team to gain access

    to project site as early as possible

  • 7/27/2019 fast track project.ppt

    61/76

    61

    Construction Stage

    IntroductionManage the additional risksAchieve high productivity from construction work force

    Good understanding of options for compressing the schedule

    Good risk management and communication system

    Coordination among all contractors and suppliers

    People

    Clarity of objectives

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

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

    The interests of the site workforce should be identified

    (working arrangements, working periods, flexibility and criticalath activities

    C t ti St

  • 7/27/2019 fast track project.ppt

    62/76

    62

    Construction Stage

    PeopleIntegrated team

    Single integrated team with one culture should be carriedthrough to the construction site (it may be difficult with manysuppliers)

    Contracts between the parties involved need to be set up topromote integration and co-operation and to enable all partiesto 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-operativelyregardless of direct contractual relationship

    Design staff to be based on the construction site

    Rapid response from engineering staff not site based

    C t ti St

  • 7/27/2019 fast track project.ppt

    63/76

    63

    Construction Stage

    Integrated team

    Vendors available to assist in the erection, site testing andpre-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 thenormal construction squad to hit critical items whileavoiding disruption to construction progress

    Testing as part of the installation process, not subsequentactivity

    Construction Stage

  • 7/27/2019 fast track project.ppt

    64/76

    64

    Construction Stage

    People

    Delegation and empowermentAuthorize and empower members of the project team topromote rapid and effective decision taking at thelowest competent level

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

    Supervision ratios may need to be increased

    Skilled and experienced staff are employed

    Construction 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

  • 7/27/2019 fast track project.ppt

    65/76

    65

    Construction Stage

    ScopeA 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

    StrategyConstruction 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 -

  • 7/27/2019 fast track project.ppt

    66/76

    66

    Construction Stage

    Site contractsNumber and arrangement of contractors should be optimized for speed

    of construction

    Management and resourcesNumber and skills supplied to meet demands of plan

    Competence in required project management and discipline skills

    Workforce clocking / accommodation / messing facilities close to workfaces

    Materials and equipment

    Materials and consumables supplied to ensure no delay throughshortage

    Materials management system to supply materials and equipmentsafely and efficiently to the work face

    Generous supply of construction equipment, personal protective

    Construction, commissioning and operational spares ordered withe ui ment

  • 7/27/2019 fast track project.ppt

    67/76

    67

    Construction Stage

    Quality assuranceBuild quality in. Do the job right the first time (inspection does

    not improve quality)

    Systems designed to minimize rework

    Ensure that the latest revision is n use and previous issueshave been withdrawn

    Access

    Good, safe site access

    Generous lay-down, storage and work areas for pre-fabrication,

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

    Maximum use of mobile access devices such as CherryPickers and scissor lifts

    Safety, Health and Environment

  • 7/27/2019 fast track project.ppt

    68/76

    68

    Construction Stage

    Project 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 toproduce constructable design packages and constructable procurementpackages

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

    Keep plan under review throughout the construction period.

  • 7/27/2019 fast track project.ppt

    69/76

    69

    Construction Stage

    Planning 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 andcommissioning 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

  • 7/27/2019 fast track project.ppt

    70/76

    70

    Construction Stage

    Project Management ProceduresProject Control

    Control must be a dynamic process with very short cycle timeand 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

  • 7/27/2019 fast track project.ppt

    71/76

    71

    Construction Stage

    Project Management ProceduresCommunications

    Communications should be:

    Simple limited to what is necessary

    Pertinent

    Timely

    Using best available mechanism; face-to-face

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

    Enable all parties to work together with an improvedunderstanding of the design intent to avoid delays

    arising from misunderstandings and interdisciplinary

  • 7/27/2019 fast track project.ppt

    72/76

    72

    Construction Stage

    Cost and Risk

    Mechanism for controlling costs through efficient use oflabour and materials and the avoidance of reworkincluding 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 andresources ASAP.

    Balance between risk and reward

  • 7/27/2019 fast track project.ppt

    73/76

    73

    Construction Stage

    LogisticsDesign support for construction should be located on site

    If not possible then effective IT system should be used to improvecommunications and enable marked up drawings to be rapidlytransmitted

    Maintain the momentum of the construction site and avoid theneed to move site labour on to less urgent work due to hold ups onthe 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 e ui ment

  • 7/27/2019 fast track project.ppt

    74/76

    74

    Key Issues

    With Fast TrackControl is redefined from monitoring results to

    making things happen

    Performance is maximizing value and minimizing wasteat the project level

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

    Coordinating action through pulling and continuous flowas opposed to traditional schedule driven push with itsover-reliance on central authority and project scheduleto manage resources and coordinate work

    Decentralizing decision making through transparency

    and empowerment (effective communication)

    Key Issues

  • 7/27/2019 fast track project.ppt

    75/76

    75

    Key Issues

    Key organizational features include leadership, teamworkand trust

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

    resources

    Providing the wrong goods or service the right way iswaste 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 decisionmaking

    Eliminate ineffective time on site activities

    Si nificant attention to ro ect with new technolo

  • 7/27/2019 fast track project.ppt

    76/76

    Thank You

    Managing Fast Track

    Projects: A Guide and

    Checklists