Studio 5000® Strategic Overview: The Automation Engineering and Design Environment
Overview of project management in engineering environment
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Transcript of Overview of project management in engineering environment
Overview of project management in the engineering & construction environment
Project Management
The main topics
Overview of Project Management in Engineering & Construction Environment 2
Setting the scene - Definitions
Project management methodology
Life cycles – various perspectives
Project management functions and processes
Project success
Case Studies
Setting the Scene
Overview of Project Management in Engineering & Construction Environment 3
Operations and Projects
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Business-as-usual
Business change
Another View
Overview of Project Management in Engineering & Construction Environment 5
From PMI Publication
Project Owner vs. Service Provider
Overview of Project Management in Engineering & Construction Environment 6
Careers Perspective
Overview of Project Management in Engineering & Construction Environment 7
Something to think about: where do you see yourself?
What is a project? (PMBOK® Guide)
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“A project is a temporary endeavor undertaken to create a unique product,
service, or results”
The focus here is on the output for a project
Material from the PMBOK® Guide has been reproduced with the permission of PMI
What is a project? (SUKAD)
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We add to the PMI definition:
A project is anything we create from scratch or a major change to an existing system,
That requires (major) effort in terms of planning and delivery, and
It creates value to the organization, realizing the benefits expected when authorizing the project
Definition: Project Management
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“Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements”
PMBOK® Guide, Chapter 1
Project Management Methodology
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Product Life Cycle
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Project Life Cycle
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ProjectIf this box represents a project?
Then, a project life cycle represents how to transform an idea (concept, vision, goal) into
reality, producing benefits!
Idea
Clos
ure
Phases and Stages
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Project Life Cycle
Phase 1 Phase 3Phase 2
Stage 1
Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Stage 8
Deliverables and Gates
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A Deliverable is the output of a given stage
A Gate is stage/phase Exit: decision point
The
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Customized: Construction Project
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Service Provider Perspective
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Project Management Functions and Processes
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A process
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A process is a series of actions (using tools and techniques) to bring about a result
Input is what we need before we start …
Output is what we get when done
To achieve output, we use tools and follow certain techniques
Tools and TechniquesInput Output
P-D-C-A
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P-D-C-A – 2
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PM process groups within a phase
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PMBOK Guide
The knowledge areas
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Integration
Scope
Time
Cost
Quality
HR
Communication
Risk
Procurement
Stakeholders
Process groups repeating along PLC
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PMBOK® Guide versus CAM2P™
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Small & simple projects
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Use the standard model; and modify as necessary
Or, the modified process groups
Medium & moderate projects
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Large & complex projects
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Overview of Planning and Control
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WBS: a critical initial step
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WBS
Q/SHE
Time (Schedule)
Cost (CBS)
People (RBS)
Communication
Risk (RBS)
Procurerement
Trip
France
Paris
Tour Eiffel Louvre Arc de Triumph
Nice
Italy
Rome
Coliseum
Venice
Spain
Another sample WBS: trip project
Overview of Project Management in Engineering & Construction Environment 32
Project Success
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SUKAD four dimensions of success
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This first dimension focus on the product of the project.We measure success at the time of handover and final acceptance.We measure it in comparison to project plan (design, specifications, standards, etc.)
The first dimension
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Close (COR)
Initial Ops
Idea
Concept/ Feasibility
Project Definition (Detailed Plan)
Pro
ject
P
lan
Han
dov
er
Ch
arte
r
Acc
ept.
PM Planning
PM
Pla
n
1 2 3 4
Implementation
5 6
D1: Success of the Product
This second dimension focus on project management. We measure at the time project close out.We measure it in comparison to the project management plan (time, cost, etc.)
The second dimension
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D2: Success of Project Management
Close (COR)
Initial Ops
Idea
Concept/ Feasibility
Project Definition (Detailed Plan)
Pro
ject
P
lan
Han
dov
er
Ch
arte
r
Acc
ept.
PM Planning
PM
Pla
n
1 2 3 4
Implementation
5 6
The third dimension
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D3: Success of Project
Close (COR)
Initial Ops
Idea
Concept/ Feasibility
Project Definition (Detailed Plan)
Pro
ject
P
lan
Han
dov
er
Ch
arte
r
Acc
ept.
PM Planning
PM
Pla
n
1 2 3 4
Implementation
5 6
This third dimension focus on project delivery. We might be able to measure at acceptance but often not possible until later.We measure it in comparison to the project authorization (charter).
This fourth dimension focus on the project business case and objectives. Most likely we cannot measure this at acceptanceWe can only measure after completion; possibly months or years later.We measure it in comparison to the Idea Statement (Business Case/Feasibility).
The fourth dimension
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Close (COR)
Initial Ops
Idea
Concept/ Feasibility
Project Definition (Detailed Plan)
Pro
ject
Pla
n
Han
dov
er
Ch
arte
r
Acc
ept.
PM Planning
PM
Pla
n
1 2 3 4
Implementation
5 6
D4: Success of The Idea – Business Objective
Case Studies
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Case Study: Project Success
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Pipe and valve vendorsWanted to build a gym in warehouse facilityWhat would you do if you are the PM?Most PM will build a gymSo if we build the gym, per specification, can say we have achieved success?How about completion per time and cost parameters, is this success?
Case study, continued
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We asked the question: “Why are we building a gym?”The answer is: “We are building a gym to improve employees health”Is the project different? If yes – how?Would you do anything different in term of deliverables of the project?From project success perspective, would that make a difference to how to deliver project?
Case Study 2: “Building” Project
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Project was to build a certain “building”
Project completed
Significantly over budget (x10),
6 years later than planned
Is this project successful?
What could help us decide?
Case Study 2, continued
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How about this:
“The ----- is a great architectural work of the 20th century that brings together multiple strands of creativity and innovation in both architectural form and structural design.”
“Outstanding Universal Value “ ----- is positioned as a world-famous icon of architecture. The building is a great artistic monument and an icon, accessible to society at large.
Is this project successful?Ref. UNESCO Website
Dimensions of success – CS2
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Case Study: Geotechnical
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Major project in Dubai – housing communityPreliminary sub-surface investigation
Consultant requested more – client refused
Result: 40+ villas are useless due to differential settlement – causing cracks and other damage
Similar project in Abu DhabiHouses were sinking
Discovered underground voids collapsing with time
Case Study: Design Errors
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Building to house doctors clinicsEngineering did not fully understand purposeToday, one can perform outpatient surgery in clinics
ResultsNormal corridors and elevators
• Cannot bring in patient on stretchers
No UPS facilities
Two Mega Projects
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Projects’ Common Factors
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Both projects were about equal in valueBoth ~ US$ 2 – 4 billion in today market
Both projects were joint/triple venturesBoth projects parts of larger programsIncluded: major grass root facilities
Included: modifications within existing refineries owned by one of the partners
Material Procurement & Sourcing
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Projects’ Differentiation Factors – 1
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Contract: commercial aspectsAP: reimbursable cost/cost plus incentive
• Incentive for Cost, Safety, and Schedule
UP: fixed price (initially open book)
Contract: execution approachAP: EPCM + multiple construction contracts
• Engineering: UK // Construction: SE Asia
UP: EPCM + 1 general contractor
EPCM: Engineering, Procurement, and Construction Management
Projects’ Differentiation Factors - 2
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AP: was on a small island
About 60% of area reclaimed from sea
Engineering in Europe
UP: was inland
No major logistical challenges
Engineering office 2 hours away by car
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53
The USA Project
Overview of Project Management in Engineering & Construction Environment
Capital Investment Risk Continuum (Contract Types Versus Risk)
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Figure not by the author – download from internet and source is lost
AP UP
Which project was a success
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What made the difference?
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PM maturity: major contributing factorTeam size & experience: significantSenior stakeholders involvement: crucialProper pre-planning; impact on changeCommunicationFor AP a major focus
For UP monthly reports an email
Once again: careers perspective
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Something to think about: where do you see yourself?
Thank you
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@mounirajam@SUKADgroup