Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited...

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Project Definition Project Definition Rating Index (PDRI) Rating Index (PDRI) Revisited Revisited Workshop Workshop September 20, 2004 September 20, 2004

Transcript of Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited...

Page 1: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Project Definition Rating Index Project Definition Rating Index (PDRI) Revisited(PDRI) Revisited

WorkshopWorkshop

September 20, 2004September 20, 2004

Page 2: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Workshop ParticipantsWorkshop Participants

Edd Gibson, ModeratorEdd Gibson, Moderator

Jay HooverJay Hoover

John FishJohn Fish

Bob HerringtonBob Herrington

Tim AlbrechtTim Albrecht

Javid TalibJavid Talib

Page 3: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI PublicationsPDRI Publications

PDRI Industrial ProjectsPDRI Industrial ProjectsCII Implementation Resource 113-CII Implementation Resource 113-

22

PDRI Building ProjectsPDRI Building ProjectsCII Implementation Resource 155-CII Implementation Resource 155-

22

http://www.construction-institute.org/http://www.construction-institute.org/pdri/cii-pdri.cfmpdri/cii-pdri.cfm

Page 4: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

SECTION I - BASIS OF PROJECT DECISION

Definition Level CATEGORY Element

0 1 2 3 4 5 Score

A. MANUFACTURING OBJECTIVES CRITERIA (Maximum Score = 45) A1. Reliability Philosophy 0 1 5 9 14 20 A2. Maintenance Philosophy 0 1 3 5 7 9 A3. Operating Philosophy 0 1 4 7 12 16

CATEGORY A TOTAL

B. BUSINESS OBJECTIVES (Maximum Score = 213) B1. Products 0 1 11 22 33 56 B2. Market Strategy 0 2 5 10 16 26 B3. Project Strategy 0 1 5 9 14 23 B4. Affordability/Feasibility 0 1 3 6 9 16 B5. Capacities 0 2 11 21 33 55 B6. Future Expansion Considerations 0 2 3 6 10 17 B7. Expected Project Life Cycle 0 1 2 3 5 8 B8. Social Issues 0 1 2 5 7 12

CATEGORY B TOTAL

C. BASIC DATA RESEARCH & DEVELOPMENT (Maximum Score = 94) C1. Technology 0 2 10 21 39 54 C2. Processes 0 2 8 17 28 40

CATEGORY C TOTAL

D. PROJECT SCOPE (Maximum Score = 120) D1. Project Objectives Statement 0 2 25 D2. Project Design Criteria 0 3 6 11 16 22 D3. Site Characteristics Available vs. Req’d 0 2 29 D4. Dismantling and Demolition Req’mts 0 2 5 8 12 15 D5. Lead/Discipline Scope of Work 0 1 4 7 10 13 D6. Project Schedule 0 2 16

CATEGORY D TOTAL

E. VALUE ENGINEERING (Maximum Score = 27) E1. Process Simplification 0 0 8 E2. Design & Material Alts. Considered/Rejected 0 0 7 E3. Design For Constructability Analysis 0 0 3 5 8 12

CATEGORY E TOTAL

Section I Maximum Score = 499 SECTION I TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

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PDRI Element DescriptionsPDRI Element Descriptions(Example)(Example)

A1.A1. Reliability PhilosophyReliability Philosophy

A list of the general design principles to be considered to achieve dependable A list of the general design principles to be considered to achieve dependable operating performance from the unit. Evaluation criteria should include:operating performance from the unit. Evaluation criteria should include:

Justification of spare equipmentJustification of spare equipment

Control, alarm, and safety systems redundancyControl, alarm, and safety systems redundancy

Extent of providing surge and intermediate storage capacity to Extent of providing surge and intermediate storage capacity to permit independent shutdown of portions of the plantpermit independent shutdown of portions of the plant

Mechanical / structural integrity of components (metallurgy, Mechanical / structural integrity of components (metallurgy, seals, types of couplings, bearing selection, etc.)seals, types of couplings, bearing selection, etc.)

Page 6: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

SECTION I - BASIS OF PROJECT DECISION

Definition Level CATEGORY Element

0 1 2 3 4 5 Score

A. MANUFACTURING OBJECTIVES CRITERIA (Maximum Score = 45) A1. Reliability Philosophy 0 1 5 9 14 20 A2. Maintenance Philosophy 0 1 3 5 7 9 A3. Operating Philosophy 0 1 4 7 12 16

CATEGORY A TOTAL

B. BUSINESS OBJECTIVES (Maximum Score = 213) B1. Products 0 1 11 22 33 56 B2. Market Strategy 0 2 5 10 16 26 B3. Project Strategy 0 1 5 9 14 23 B4. Affordability/Feasibility 0 1 3 6 9 16 B5. Capacities 0 2 11 21 33 55 B6. Future Expansion Considerations 0 2 3 6 10 17 B7. Expected Project Life Cycle 0 1 2 3 5 8 B8. Social Issues 0 1 2 5 7 12

CATEGORY B TOTAL

C. BASIC DATA RESEARCH & DEVELOPMENT (Maximum Score = 94) C1. Technology 0 2 10 21 39 54 C2. Processes 0 2 8 17 28 40

CATEGORY C TOTAL

D. PROJECT SCOPE (Maximum Score = 120) D1. Project Objectives Statement 0 2 25 D2. Project Design Criteria 0 3 6 11 16 22 D3. Site Characteristics Available vs. Req’d 0 2 29 D4. Dismantling and Demolition Req’mts 0 2 5 8 12 15 D5. Lead/Discipline Scope of Work 0 1 4 7 10 13 D6. Project Schedule 0 2 16

CATEGORY D TOTAL

E. VALUE ENGINEERING (Maximum Score = 27) E1. Process Simplification 0 0 8 E2. Design & Material Alts. Considered/Rejected 0 0 7 E3. Design For Constructability Analysis 0 0 3 5 8 12

CATEGORY E TOTAL

Section I Maximum Score = 499 SECTION I TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

Page 7: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Score Sheet ContentsScore Sheet ContentsPDRI for Industrial ProjectsPDRI for Industrial Projects

• Section I: Basis of Project DecisionSection I: Basis of Project Decision

– Five categories, 22 elementsFive categories, 22 elements– ““Right project”Right project”

• Section II: Front End DefinitionSection II: Front End Definition

– Six categories, 33 elementsSix categories, 33 elements– ““Right product”Right product”

• Section III: Execution ApproachSection III: Execution Approach

– Four categories, 15 elementsFour categories, 15 elements– ““Right way”Right way”

Page 8: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI-IndustrialPDRI-Industrial

I. Basis of Project DecisionI. Basis of Project Decision

II. Front End DefinitionII. Front End Definition

III. Execution ApproachIII. Execution Approach

A. Manufacturing Objectives CriteriaA. Manufacturing Objectives CriteriaB. Business ObjectivesB. Business ObjectivesC. Basic Data Research and C. Basic Data Research and

DevelopmentDevelopmentD. Project ScopeD. Project ScopeE. Value EngineeringE. Value EngineeringF. Site InformationF. Site InformationG. Process / MechanicalG. Process / MechanicalH. Equipment ScopeH. Equipment ScopeI. Civil, Structural, and ArchitecturalI. Civil, Structural, and ArchitecturalJ. InfrastructureJ. InfrastructureK. Instrument and ElectricalK. Instrument and ElectricalL. Procurement StrategyL. Procurement StrategyM. DeliverablesM. DeliverablesN. Project ControlN. Project ControlP. Project Execution PlanP. Project Execution Plan

Page 9: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Score Sheet ContentsScore Sheet ContentsPDRI Building ProjectsPDRI Building Projects

• Section I: Basis of Project DecisionSection I: Basis of Project Decision– Three categories, 18 elementsThree categories, 18 elements– ““Right project”Right project”

• Section II: Basis of DesignSection II: Basis of Design– Four categories, 32 elementsFour categories, 32 elements– ““Right product”Right product”

• Section III: Execution ApproachSection III: Execution Approach– Four categories, 14 elementsFour categories, 14 elements– ““Right way”Right way”

Page 10: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI for BuildingsPDRI for Buildings

I. Basis of Project I. Basis of Project

DecisionDecision

II. Basis of DesignII. Basis of Design

III. Execution ApproachIII. Execution Approach

A. Business StrategyA. Business Strategy

B. Owner PhilosophyB. Owner Philosophy

C. Project RequirementsC. Project Requirements

D. Site InformationD. Site Information

E. Building ProgrammingE. Building Programming

F. Building/Project Design F. Building/Project Design ParametersParameters

G. EquipmentG. Equipment

H. Procurement StrategyH. Procurement Strategy

J. DeliverablesJ. Deliverables

K. Project ControlK. Project Control

L Project Execution PlanL Project Execution Plan

Page 11: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Jay HooverJay Hoover

Chief, Project Management Office Chief, Project Management Office Johnson Space CenterJohnson Space Center

Page 12: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

How is the PDRI used at NASA JSC?How is the PDRI used at NASA JSC?

Best Practice on All Capital Projects > $0.5MBest Practice on All Capital Projects > $0.5M Three (3) years of useThree (3) years of use ~ 45 Capital Projects~ 45 Capital Projects Planning Office Tool -- Pre-Project Planning Planning Office Tool -- Pre-Project Planning Project Mgmt Tool – Design PhaseProject Mgmt Tool – Design Phase PDRI Score is Requested for Project PDRI Score is Requested for Project

Approval and FundingApproval and Funding

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• ~ 15 Projects in P3 Now~ 15 Projects in P3 Now• ~ 15 Project in Design Now~ 15 Project in Design Now• ~ 15 Project in Construction Now or Done~ 15 Project in Construction Now or Done• Very Good Results – Problem AvoidanceVery Good Results – Problem Avoidance• A Few Project SurprisesA Few Project Surprises

― Unknown Field Conditions, Steel Costs, Unknown Field Conditions, Steel Costs,

Limited CompetitionLimited Competition

Results at NASA JSCResults at NASA JSC

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• We Could Have Used This 10 Years AgoWe Could Have Used This 10 Years Ago• Feel High Success RateFeel High Success Rate• It’s Not a GuaranteeIt’s Not a Guarantee• Teams Can Work Well by Starting WellTeams Can Work Well by Starting Well• PDRI and P3 Need Updating for New PDRI and P3 Need Updating for New

Security and LEED ChangesSecurity and LEED Changes

Lessons Learned at NASA JSC:Lessons Learned at NASA JSC:

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John FishJohn Fish

Director Procurement and Quality Director Procurement and Quality Assurance Assurance

Ford, Bacon & Davis, LLCFord, Bacon & Davis, LLC Also representing:Also representing:

S&B Engineering & Construction, LtdS&B Engineering & Construction, Ltd

Page 16: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Pre-Project Planning Checklist - Pre-Project Planning Checklist - CONSISTENCY!!!CONSISTENCY!!! Communication & Team Alignment ToolCommunication & Team Alignment Tool

Help Communicate Business Drivers to Team.Help Communicate Business Drivers to Team. Ensure Operations has buy-inEnsure Operations has buy-in

Screen the WRONG project early.Screen the WRONG project early. Provide Owner and Contractor a feedback tool across Provide Owner and Contractor a feedback tool across

ALL projects.ALL projects. Emphasize the need for Best Practices IN FELEmphasize the need for Best Practices IN FEL Importance of Business Drivers, Importance of Business Drivers, Contracting StrategyContracting Strategy, ,

Turnover and Commissioning Planning in FEL.Turnover and Commissioning Planning in FEL. Leads Explain WHAT and HOW to satisfaction of Project Leads Explain WHAT and HOW to satisfaction of Project

Manager and Owner Team.Manager and Owner Team.

Results at S&B/FB&DResults at S&B/FB&D

MANAGE THE INPUTS -- NOT OUTPUTS

Page 17: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

FB&D GATED PROJECT DELIVERY SYSTEMFB&D GATED PROJECT DELIVERY SYSTEM

FEL 1 FEL 2 FEL 3 EXECUTION OPERATEGATE

2GATE

1GATE

3

Select Projects

with highest potential of

meeting business objectives

Select the preferred

process and technology

options

Business Assessment

Alternatives Selection

Scope Definition

Detailed Engineering & Construction

Start-Up Operate

and Evaluate

Completely Define and Agree on

full scope of work

Develop the Plan

Execute the Plan

Detailed Engineering

Procurement

Construction Turnover

Start-Up

Make Adjustments

Achieve name plate capacities

Evaluate

FEL 1 Estimate

+50% -50%

FEL 2 Estimate

+30% -20%

FEL 3 Estimate

+10% -10%

Gate Keeper will review and evaluate the Deliverables and Business Objective requirements will be reviewed before

proceeding to the next gate

Go No/Go

Go No/Go

Go No/Go

Potential PDRI Points

PDRI

3 Times for Larger Projects

2 Times for Mid Sized

End of FEL 3 Small Projects

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How is the PDRI used at S&B/FB&DHow is the PDRI used at S&B/FB&D

Trained NON-Project FacilitatorsTrained NON-Project Facilitators Large Projects - 2 or 3 timesLarge Projects - 2 or 3 times

Guide to Prepare Team for IPAGuide to Prepare Team for IPA Alignment Alignment Focus on Heavy Hitters/At Risk ItemsFocus on Heavy Hitters/At Risk Items

Multiple Small Projects 1 to 2 timesMultiple Small Projects 1 to 2 times Team AlignmentTeam Alignment Identify At Risk ItemsIdentify At Risk Items 200 Score Required for Funding by owners200 Score Required for Funding by owners

Lump Sum EPC Bidding - Lump Sum EPC Bidding - Look for Risk/WeaknessesLook for Risk/Weaknesses

PDRI Score is Requested for Project Approval and PDRI Score is Requested for Project Approval and FundingFunding

Page 19: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Bob HerringtonBob Herrington

Manager of QualityManager of Quality

Southern RegionSouthern Region

Page 20: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

How is PDRI used at Jacobs?How is PDRI used at Jacobs?

Implemented in 1995 with draft CII documentImplemented in 1995 with draft CII document Recognized formally in Jacobs EPC work Recognized formally in Jacobs EPC work

process as ‘Value Enhancing Practice’process as ‘Value Enhancing Practice’ Required use on all CPI capital projects > Required use on all CPI capital projects >

$2.0MM$2.0MM Employed formally at end of Phase 2 and 3 Employed formally at end of Phase 2 and 3

(Within FEL) to measure quality/completeness(Within FEL) to measure quality/completeness Used for tracking progress during FELUsed for tracking progress during FEL

Page 21: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

How is PDRI used at Jacobs?How is PDRI used at Jacobs?

Scoring and ‘Gap List’ reviewed in Pass Gate Scoring and ‘Gap List’ reviewed in Pass Gate session, prior to proceeding into next project session, prior to proceeding into next project phasephase

Utilized in addition to IPA FEL AssessmentUtilized in addition to IPA FEL Assessment Used to evaluate 3Used to evaluate 3rdrd party document quality & party document quality &

completeness completeness

Page 22: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Jacobs Work Jacobs Work ProcessProcess Summary Map Summary Map

Start-upFeasibility

PHASE 1

Conceptual

PHASE 2

Prelim.Engrg.

PHASE 3

DetailedDesign &Procure

Construction

PHASE 5 PHASE 6

Close-out

PHASE 7

PDRI USED AT PDRI USED AT PASS GATESPASS GATES

PHASE 4

End of FELEnd of FEL

Ongoing Activities: JVEPsSM, Performance Measurements, Quality Audits, Client Satisfaction Surveys, Progress Reporting, Cost and Schedule Control, Total Value Added

Page 23: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI use has ….PDRI use has …. attributed to more complete/consistent FEL attributed to more complete/consistent FEL

packagespackages led to more successful project outcomes by led to more successful project outcomes by

driving completion of FELdriving completion of FEL prevented proceeding to next project phase prevented proceeding to next project phase

prematurely (reduced rework)prematurely (reduced rework) PDRI ‘Gap List’ used by Teams to PDRI ‘Gap List’ used by Teams to

complete FEL deliverables within schedulecomplete FEL deliverables within schedule assess risks and establish mitigation plansassess risks and establish mitigation plans

Results at JacobsResults at Jacobs

Page 24: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI sessions should be facilitated by PDRI sessions should be facilitated by internal 3internal 3rdrd party to obtain objective results party to obtain objective results

Owner and multi-discipline participation Owner and multi-discipline participation improves resultsimproves results

‘‘Gap List’ is more valuable than “raw” scoreGap List’ is more valuable than “raw” score Interim use of PDRI provides excellent Interim use of PDRI provides excellent

“Health Check” on project progress“Health Check” on project progress 33rdrd party packages improved through use of party packages improved through use of

PDRIPDRI

Lessons Learned at JacobsLessons Learned at Jacobs

Page 25: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Tim AlbrechtTim AlbrechtEngineering & Construction Contract Engineering & Construction Contract

ManagementManagement

Copyright 2004, 3M. All Rights ReservedCopyright 2004, 3M. All Rights Reserved

Page 26: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

BusinessPlanning

Project Definition & Process

Specifications

Project ConceptDesign/

Specifications

Funding

ProjectScreening

PDRIPDRI

Front-endEngr. Pkg Sign Off

Detail Design,Procure & Build

Construction&

InstallationCommissioning

Business/Mfg & Eng. Mgr

Project Team

Stakeholders &Project Team

(The Right Project)

(The Right

Scope)

(The Right Execution Plan)

Capital Project Delivery Process at 3M

Page 27: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Evolution of PPP and PDRI at 3MEvolution of PPP and PDRI at 3M

• 2000-2002: PPP, Alignment, and PDRI Training for Project 2000-2002: PPP, Alignment, and PDRI Training for Project Engineers (Edd Gibson)Engineers (Edd Gibson)

• Requirement effective February 1, 2000, for FundingRequirement effective February 1, 2000, for Funding• Integration of PDRI into our Project Management ProcessIntegration of PDRI into our Project Management Process

― Project Management Manual and Diagram (2000)Project Management Manual and Diagram (2000)― Front End Engineering Package (2003)Front End Engineering Package (2003)― Alignment of Phases 1-3 to the PDRI Elements (2004)Alignment of Phases 1-3 to the PDRI Elements (2004)

• Project Management Sub-Team (Engineering Council) – 2004Project Management Sub-Team (Engineering Council) – 2004

Page 28: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI AnalysesPDRI Analyses

Over 137 PDRI Analyses Completed to Date as Over 137 PDRI Analyses Completed to Date as Requirement for Funding. Requirement for Funding.

― 2000 2000 (52) PDRI(52) PDRI (147) Average Score(147) Average Score― 20012001 (27) PDRI(27) PDRI (156) Average Score(156) Average Score― 20022002 (12) PDRI(12) PDRI (177) Average Score(177) Average Score― 20032003 (29) PDRI(29) PDRI (171) Average Score(171) Average Score― 2004YTD2004YTD (16) PDRI(16) PDRI (189) Average Score(189) Average Score

Page 29: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Lessons Learned- ProcessLessons Learned- Process

• Use Early in ProjectUse Early in Project― Review PDRI & Element Descriptions Review PDRI & Element Descriptions

with Key Project Personnelwith Key Project Personnel― ChecklistChecklist

• Front-end Engineering Requires Time & Front-end Engineering Requires Time & Resource AvailabilityResource Availability

• Process Flow Diagrams & P&ID’s should Process Flow Diagrams & P&ID’s should be Prepared Prior to Fundingbe Prepared Prior to Funding

• Need Measurements to Demonstrate Value Need Measurements to Demonstrate Value of PDRIof PDRI

Page 30: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

““The real benefit of the PDRI will not be The real benefit of the PDRI will not be realized until the engineering realized until the engineering community and (business) community and (business) management are fully supportive of management are fully supportive of front-end engineering……”front-end engineering……”

Page 31: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Lessons Learned- TeamLessons Learned- Team

• Core Team Participates in At Least One Core Team Participates in At Least One Evaluation MeetingEvaluation Meeting

― Alignment of StakeholdersAlignment of Stakeholders― Balanced & Quantitative Assessment Balanced & Quantitative Assessment

of Scope Definition.of Scope Definition.― Excellent Communication ToolExcellent Communication Tool― Teaching Tool for Non-Engineering Teaching Tool for Non-Engineering

Personnel.Personnel.

Page 32: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

““The PDRI is really comprehensive….The PDRI is really comprehensive….More so than any other single More so than any other single document we use and it is an eye document we use and it is an eye opener for lab, process, even division opener for lab, process, even division manufacturing clients….……”manufacturing clients….……”

Page 33: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Lessons Learned- FacilitationLessons Learned- Facilitation

• Use a Facilitator from Outside the Project Use a Facilitator from Outside the Project TeamTeam

• Challenge Project Team to have Challenge Project Team to have Element/Deliverable in Writing to Score Element/Deliverable in Writing to Score Each Element as Completely Defined.Each Element as Completely Defined.

• Assemble Action List/Person ResponsibleAssemble Action List/Person Responsible

Page 34: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Javid Talib, P.E.Javid Talib, P.E.

Senior Project ManagerSenior Project Manager

Gas, Oil and Chemicals DivisionGas, Oil and Chemicals Division

Page 35: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Using PDRI at Black & VeatchUsing PDRI at Black & Veatch

PDRI (Industrial) – Operations DirectivePDRI (Industrial) – Operations Directive Standard Execution Approach – Quality GateStandard Execution Approach – Quality Gate

Front End Engineering Design (FEED)Front End Engineering Design (FEED) EPCEPC

Benchmarking/Client Gates / IPABenchmarking/Client Gates / IPA Lump Sum EPC BiddingLump Sum EPC Bidding Great Tool for monitoring/AlignmentGreat Tool for monitoring/Alignment

Page 36: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Suddenly, a heated exchange took place between the king and the moat

contractor.

THE FAR SIDE ©1990 FARWORKS, Inc./

Dist. by UNIVERSAL PRESS SYNDICATE.

Reprinted with permission.All rights reserved.

THE FAR SIDE By GARY LARSON

Page 37: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

• 20+ Projects20+ Projects Achieved 220 or Less for All FEED Achieved 220 or Less for All FEED Well Defined FEEDWell Defined FEED Good Correlation with Project OutcomeGood Correlation with Project Outcome

Results at Black & VeatchResults at Black & Veatch

Page 38: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Implementation - How do we do it?Implementation - How do we do it?

• Trained FacilitatorTrained Facilitator• Well Balanced Team/ParticipantsWell Balanced Team/Participants• Short Training Session for All ParticipantsShort Training Session for All Participants• Maintain Same ParticipantsMaintain Same Participants• Participant Come PreparedParticipant Come Prepared• It’s a Team Effort!It’s a Team Effort!

Page 39: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Implementation - How do we do it?Implementation - How do we do it?

• Automated Scoring SheetsAutomated Scoring Sheets• Patience – Do Not Focus on Just NumbersPatience – Do Not Focus on Just Numbers• Encourage Open Discussions - ConsensusEncourage Open Discussions - Consensus• Use Action List Use Action List • Chart the Target ScoringChart the Target Scoring

Page 40: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

0

100

200

300

400

500

600

700M

AR

04

AP

R04

MA

Y04

JUN

04

JUL

04

AU

G04

SE

P04

OC

T04

NO

V04

DE

C04

PD

RI S

CO

RE

SEC I

SEC II

SEC III

TOTAL PDRI

TARGET TOTAL SCORE = 200

Charting Target PDRI ScoreCharting Target PDRI ScoreExampleExample

Page 41: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Implementation - How do we do it?Implementation - How do we do it?

• Have Fun!Have Fun!

Page 42: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Questions?Questions?

Page 43: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Additional SlidesAdditional Slides

Page 44: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Comparison of Projects with PDRIComparison of Projects with PDRIAbove and Below 200 Above and Below 200 —— Industrial Projects Industrial Projects

PerformancePerformance < 200< 200 > 200> 200

CostCost 4% below budget4% below budget 6% over budget6% over budget

ScheduleSchedule 3% behind schedule3% behind schedule 11% behind schedule11% behind schedule

Change OrdersChange Orders 6% of budget6% of budget 8% of budget8% of budget

(N=62)(N=62) (N=44)(N=44)

PDRI ScorePDRI Score

Page 45: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI – The ResultsPDRI – The Results

Example:Example:

$55 Million Industrial Project, 24-Month Schedule$55 Million Industrial Project, 24-Month Schedule

< 200< 200 > 200 > 200

CostCost $53 million$53 million $57 million $57 million

ScheduleSchedule 24 months 26 months24 months 26 months

Page 46: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Comparison of Projects with PDRIComparison of Projects with PDRIAbove and Below 200 Above and Below 200 —— Building Projects Building Projects

PerformancePerformance < 200< 200 > 200> 200

CostCost 1% over budget1% over budget 10% over budget10% over budget

ScheduleSchedule on scheduleon schedule 21% behind schedule21% behind schedule

Change OrdersChange Orders 7% of budget7% of budget 11% of budget11% of budget

(N=18)(N=18) (N=74)(N=74)

PDRI ScorePDRI Score

Page 47: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

PDRI TYPEPDRI TYPEPDRI USAGEPDRI USAGE

N = 70N = 70

Not Not ApplicableApplicable

(3)(3)

Not UsedNot Used(24)(24)

UsedUsed(43)(43)

BothBoth(15)(15)

Industrial OnlyIndustrial Only(22)(22)

Building OnlyBuilding Only(6)(6)

PDRI Usage Among CII MembersPDRI Usage Among CII Members

Page 48: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Industrial ProjectsIndustrial Projects

Definition Level Average from 54 Industrial Projects Definition Level Average Greater than 2.5

K2 Logic Diagrams G13 Instrument Index P5 Start Up Requirements G11 Tie-in List G12 Piping Special Item List G10 Line List P4 Pre-Commissioning Turnover Sequence Requirements K6 Instrument & Electrical Specifications N3 Risk Analysis I1 Civil/Structural Requirements E3 Design for Constructability Analysis P6 Training Requirements G3 Piping & Instrumentation Diagrams G7 Piping System Requirements

3.1 2.9 2.8 2.8 2.8 2.8 2.7 2.6 2.6 2.6 2.6 2.6 2.5 2.5

(Wang, 2002)

Page 49: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Industrial ProjectsIndustrial Projects

Top 10 Industrial Projects with Most Level 5 Definition K2 Logic Diagrams N3 Risk Analysis L3 Procurement Responsibility Matrix M3 Distribution Matrix D1 Project Objective Statement E1 Process Simplification E2 Design & Material Alterations Considered/Rejected G13 Instrument Index P3 Shut Down/Turn -Around Requirements P4 Pre-Commissioning Turnover Sequence Requirements

27201814121211111111

(Wang, 2002)

Page 50: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Building ProjectsBuilding Projects

Definition Level Average from 78 Building Projects Definition Level Average Greater than 2.5 E1 Program Statement C1 Value-Analysis Process F7 Constructability Analysis C5 Project Schedule Statement A8 Project Objective Statement C4 Scope of Work Overview C6 Project Cost F4 Mechanical Design E 11 Room Data Sheets

3.4 3.0 3.0 2.8 2.7 2.7 2.7 2.6 2.5

(Wang, 2002)

Page 51: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

Building ProjectsBuilding Projects

Top 10 Industrial Projects with Most Level 5 Definition E1 Program Statement A8 Project Objective Statement C1 Value-Analysis C4 Scope of Work Overview F4 Mechanical Design F5 Electrical Design F7 Constructability Analysis J2 Documentation/Deliverables E12 Furnishings, Equipments, and Built-ins C6 Project Cost Estimate

30 17 12 11 11 11 11 11 9 8

(Wang, 2002)

Page 52: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An ExampleAn Example

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

See bottom of page 32 of IR 113-2, also page 58 of IR 113-2

Page 53: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

J.J. INFRASTRUCTUREINFRASTRUCTURE  J1.J1. Water Treatment RequirementsWater Treatment Requirements  

Items for consideration should include:Items for consideration should include:   Wastewater treatmentWastewater treatment Process wasteProcess waste

Sanitary wasteSanitary waste Waste disposalWaste disposal

Storm water containment & treatmentStorm water containment & treatment  

Page 54: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An ExampleAn Example

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

Page 55: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

J.J. INFRASTRUCTUREINFRASTRUCTURE

J2.J2. Loading / Unloading / Storage Facilities RequirementsLoading / Unloading / Storage Facilities Requirements  

A list of requirements identifying raw materials to be unloaded A list of requirements identifying raw materials to be unloaded and stored, products to be loaded along with their specifications, and stored, products to be loaded along with their specifications, and Material Safety Data Sheets. This list should include items and Material Safety Data Sheets. This list should include items such as:such as:

   Instantaneous and overall loading / unloading ratesInstantaneous and overall loading / unloading rates Details on supply and / or receipt of containers and vesselsDetails on supply and / or receipt of containers and vessels Storage facilities to be provided and / or utilizedStorage facilities to be provided and / or utilized Specification of any required special isolation provisionsSpecification of any required special isolation provisions

Double wall diking and drainageDouble wall diking and drainage Emergency detection (e.g. hydrocarbon detectors / Emergency detection (e.g. hydrocarbon detectors /

alarms)alarms) Leak detection devices or alarmsLeak detection devices or alarms

Page 56: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An ExampleAn Example

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

Page 57: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

J.J. INFRASTRUCTUREINFRASTRUCTURE

J3.J3. Transportation Requirements Transportation Requirements (Y/N) (Y/N)  

Specifications identifying implementation of "in-plant" Specifications identifying implementation of "in-plant" transportation (e.g. roadways, concrete, asphalt, rock, transportation (e.g. roadways, concrete, asphalt, rock, etc.) as well as methods for receiving / shipping of etc.) as well as methods for receiving / shipping of materials (e.g. rail, truck, marine, etc.).materials (e.g. rail, truck, marine, etc.).

Page 58: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An ExampleAn Example

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

Page 59: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An ExampleAn Example

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

0

0

0

1

1

1

3

3

5

5

7

7

5

10

10

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

Page 60: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An Example (cont’d)An Example (cont’d)

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

0

0

0

1

1

1

3

3

5

5

7

7

5

10

10

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

Page 61: Project Definition Rating Index (PDRI) Revisited Project Definition Rating Index (PDRI) Revisited Workshop September 20, 2004.

An Example (cont’d)An Example (cont’d)

J. INFRASTRUCTURE (Maximum Score = 25)

J1. Water Treatment Requirements

J2. Loading / Unloading / Storage Facilities Req’mts

J3. Transportation Requirements

CATEGORY

Element

Definition Level

Score0 1 2 3 4 5

0

0

0

1

1

1

3

3

5

5

7

7

5

10

10

CATEGORY J TOTAL

Definition Levels

0 = Not Applicable1 = Complete Definition

2 = Minor Deficiencies3 = Some Deficiencies

4 = Major Deficiencies5 = Incomplete or Poor Definition

5

30

8