Striving for Project Management Excellence

Darrell Becker, P. Eng. – Manager, Projects

Dan McGonigal, PMP, ASQ SSBB – Manager, Quality

Emerson Confidential

Emerson’s Lifesaving Behaviors

• 90% of accidents are caused by unsafe behaviors

• Safety minded companies define a standard set of rules/behaviors that drive the safety culture and performance

• Focus is to reduce or eliminate the risk of serious injuries associated with decisions made by employees

• The focus on behavior reinforces that employees are responsible for their own safety behavior with support from the company

Emerson’s 12 Lifesaving Behaviors

The 12 Lifesaving Behaviors

1. Think Safety

2. Report Incidents

3. Assess Risk

4. Take Action

5. Know Limitations

6. Wear PPE

7. Follow Rules

8. Clean Up

9. Observe Warnings

10. Use Proper Tools

11. Drive Safely

12. Escalate if Needed

Emerson’s 12 Lifesaving Behaviors

Reminder - Promised Key Topics

Emerson Confidential

Key Message

Project Management Excellence elements:

• A proven model – PMI PMBoK

• Organizational alignment - Leadership

• Frequent and consistent communication

• Competent people – Talent Management

• Quality Management System

• Measuring performance

• Continual improvement culture

Agenda

• Emerson and Canada Engineering Center Overview

• Organizational Alignment

• Team Development

• Project Management & Quality Management

• Performance Metrics

• Continual Improvement

Emerson Confidential

Emerson – A Global Company

• Emerson Electric Company (NYSE:EMR), headquartered in St. Louis, Missouri, USA

• A global manufacturing and technology company with local presence worldwide

• 2016 Annual Revenues of $20.2 B

Emerson

Process Management

Process Systems

and Solutions (PSS)

Canada Engineering

Center (CEC)

Emerson

Automation Solutions

Process Systems

and Solutions (PSS)

Canada Engineering

Center (CEC)

Emerson – A Global Company

Emerson is a diversified global

manufacturing company that brings

technology, project management and

engineering together to provide

innovative solutions to customers in

the industrial and commercial markets.

Global Project Resources - Process Systems and Solutions (PSS)

North America

600

Europe

700

Latin America

300

Middle East /

Africa

50

Asia / Pacific

2000

3600+ Project Services and Engineering Personnel (Direct) Worldwide

Houston (GC)

North America Project Resources

Engineering Center Hub

North America

Engineering

Centers

Direct, Deputed,

And Contracted

Resources

Canada (CEC) xxx

Gulf Coast (GC) xxx

Midwest (MW) xxx

Life Sciences/West

Coast (LSWC)xxx

Total xxx

Calgary (CEC)

St. Louis (MW)

Austin (LSWC) Costa Rica

174

Manila

29

Pune

1,293

CEC is a key project execution office for Emerson that delivers process

automation solutions to customers in Alberta and around the world.

CEC Organization

Project Management Professionals: 15+

Org. Chart removed

CEC Typical Project/Program Profile

• Type: Automation (Control & Safety Systems)

• Value: $5M to $100M+ (Customer funded)

• Duration: 1 to 5 years

• Team Size: 10 to 100 people

• Industries: Oil & Gas, Chemical, Mining, LNG

• Phases: Pre-FEED, FEED, Detailed Design, Site Commissioning

Typical Project Resources Mix Number

Local Engineering & PM 30

Global Engineering & Support 25

Local Business Partners 5

Total 60Global, Local,

and Partner

Resources to

Execute the

Project

Vendor

Preferred Supplier

Solutions Partner

Trusted Advisor

CEC Customers

14

CEC Projects & Programs

15

Husky Sunrise

Agenda

• Emerson and Canada Engineering Center Overview

• Organizational Alignment

• Team Development

• Project Management & Quality Management

• Performance Metrics

• Continual Improvement

16

Objectives Alignment

CEC MISSIONDeliver automation solutions that

meet or exceed our customers’

expectations while driving our

mutual long term successes.

CEC VISIONWe are our customers’ partner and

trusted advisor, providing high

quality services and innovative

solutions resulting in exceptional

value for our customers and

success to our team

2016 CEC Goals

18

All team members will actively

contribute to CEC Safety

Culture; i.e. deliver a safety

moment, identify hazards/ near

misses, etc.

Identify opportunities to develop

activities to enhance collaborative

culture at CEC.

Improve knowledge sharing

across CEC. Establish SME

community purpose and role;

deploy to the CEC team.

37 actions to

attain

objectives

launched for

2016

2016 Operational Excellence Goals

Focus on:

• Schedule

• Budget

• Risk

Management

• Resource

Planning

• Customer

Satisfaction

Operational Excellence

Successfully execute our projects to meet or exceed customer

expectations and support our business commitments.

Delivers value to our customers and business results to our organization.

Builds customer confidence and trust to secure future business. Measures

performance of project execution and identifies areas for improvement.

Darrell Becker

Champion

Meet or exceed approved project schedules.

Meet or exceed approved project budgets.

Implement Risk Management program for all projects with risks and

opportunities properly communicated to management.

Develop and apply best practice Project Resource Planning

methodologies across all projects.

Achieve or exceed prior year CEC Customer Satisfaction Survey

(CSS) average score and meet NA CSS goal.

Management/Employee Communications

• CEC Communication Plan– Quarterly corporate & business unit webcasts

– Quarterly local all-employee meetings and celebration parties

– Monthly departmental communications meetings (Huddles)

– Coffee Chats with Center Director

– Monthly Newsletter

– Quarterly Quality Management Reviews

– Employee Opinion Surveys

– Colleague Connection

– Women in STEM

– ‘Consider It’ feedback form via Intranet

Ensure timely and

effective

communications

27

communication

plan elements

Agenda

• Emerson and Canada Engineering Center Overview

• Organizational Alignment

• Team Development

• Project Management & Quality Management

• Performance Metrics

• Continual Improvement

21

Team Development

Emerson Confidential

People

*Knowledge

*Skills

*Experience

Processes,Proceduresand Tools

OperationalExcellence

BusinessPerformance

Talent Management

9T 10T8T7T6T5T4T3T2T1T

Canada Engineering Center Career Paths - Technical

Intern/Assistant

Technologist

ENGINEERING/TECHNOLOGY

Intern

Engineer (in training)/

Technologist I

Drafter II

IS Analyst I

Engineer (in training)/

Technologist II

Designer I

IS Analyst II

Intermediate Engineer/

Technologist I

Designer II

Intermediate IS Analyst I

Intermediate IS Analyst II

Senior Engineer/

Technologist

Senior IS Analyst

Project/Technical

Lead

Lead IS Analyst

Technical Specialist

Senior Technical Specialist

Principal Consultant

Project Controls

Associate I

Project Controls

Associate II

Project Controls

Specialist I

Project Controls

Specialist II

Project Controls

Specialist III

Senior Project Controls Specialist

Project Controls

Lead

Intermediate Engineer/

Technologist II

DRAFTING/DESIGN

INFORMATION SYSTEMS

PROJECT CONTROLS

PROJECT MANAGEMENT

TECHNICAL MANAGEMENT

Drafter I

Program Manager/Director

Senior Project Manager

Senior Project Engineer

To

Exe

cutiv

e T

rack

Technical Dept.

Manager

Senior Technical Manager

Project Engineer

Technical Manager

Project Manager

Talent Management

9T 10T8T

Program Manager/Director

Senior Project Manager

Senior Project Engineer

To

Exe

cutiv

e T

rack

Technical Dept.

Manager

Senior Technical Manager

Project Engineer

Technical Manager

Project Manager

Talent Management

25

Project Management Roadmap

Project Manager Development

• Emerson Specific Project Management Training

– PM101, 201, 301

– Emerson North America PM/PgM Summits

– Advanced Leadership Training

– SkillSoftTM Curriculum

• Professional Development

– PMI-SAC Conference and events

– Emerson Global Users Exchange

– Emerson Toastmasters Chapter

– Encourage PMP/PgMP/RMP certification

– Stretch assignments

27

Resource Skills and Competencies

• A worldwide resource skills database

• Contains resource experience, competency, certifications, availability, location

28

Investment in

skills,

competencies, and

experience of

global project

resources

Agenda

• Emerson and Canada Engineering Center Overview

• Organizational Alignment

• Team Development

• Project Management & Quality Management

• Performance Metrics

• Continual Improvement

29

CEC Project Management Approach

Safety Management

Resource Management

Change Management

Quality Management

Financial Management

Contract Management

Customer/Stakeholder Management

Risk/Opportunity Management

Business Development Engagement

Project Execution

Plan

HSSE Plan

Communication Plan

Supply Chain Management

Plan

Project Controls Plan

Risk Management

Plan

Quality Plan

Document Control Plan

Integrated Change

Management Plan

Plan! Plan!

Plan!

Execute

Continual

Learning &

Improvements

Project Management Office (PMO)

Emerson

Worldwide

Standard

Project

Management

Operating

Procedures

Proven

execution

methodology

Project Management Office (PMO)

Fully aligned

with PMI

PMBoK

Project Management – Planning

Designed

globally

Executed

locally

Project Management – Communications Planning

Workflows

Procedures

Templates

Tools

Project Quality Checklist - Scalability

PMO Project

processes and

deliverables are

scalable.

The PQC

establishes the

processes and

deliverables that

will apply to a

specific Project.

Assurance and Compliance

• All engineering centers are certified to ISO 9001:2015 Quality Management System

• Compliance to IEC 61511 for Safety Instrumented Systems is certified by TüV

• Majority of project managers are certified PMI PMPsQuality

Management

System and

Certifications

Drive Global

Consistency and

Reduce Risk

Project Quality Audits – Summary Report

Emerson Confidential

Project Quality Audits – Checklist

38

CEC Audit Metrics

Emerson Confidential

0

2

4

6

8

10

12

14

16

18

2013 2014 2015 2016

1

0

1 11

0 0 0

12

17

16

13

0 00

1

3

2

PSS/ISO/TUV SystemAudits

External CustomerAudits

Internal Project Audits

Supplier Audits

Process Audits

Agenda

• Emerson and Canada Engineering Center Overview

• Organizational Alignment

• Team Development

• Project Management & Quality Management

• Performance Metrics

• Continual Improvement

40

Project Metrics

• Revenue, Cost, GP

• Schedule and Progress

– SPI, CPI, EV, PI

• Resourcing and Utilization

• Change Management

• Safety

Monthly Project

Reviews

• Customer Satisfaction

• Team Member Satisfaction

• Risks & Opportunities

• Project Quality Audits

• Lessons Learned

2016 CEC Customer Satisfaction Survey

Operational

Excellence Goal

Achieve or

exceed prior

year Customer

Satisfaction

Survey average

score

87%

95%

80%

88% 87%

96%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Project A Project B Project C Project D Project E Project F Project G

% Satisfaction Overall Average Target

Survey Categories

Project Mgmt/Ctrl

Relationship/Soft

Technical Strength

Strategic Agility

Products/Systems

Customer Allegiance

82% 83% 83%

50%

60%

70%

80%

90%

100%

2014 2015 2016

Annual Customer Satisfaction Survey Results

Projects Surveyed = 7, Customers Surveyed = 19Overall Average = 83%, Target = 85%

Customer Loyalty

Company

Project Team Surveys

Emerson Confidential

78 80 82 84 86 88 90 92

Project Planning

Role Clarity

Team Work

Project Execution

Overall Satisfaction

Communications

Recognition

Personal Growth

Overall Score

90.7

90.0

90.0

89.5

88.9

88.6

86.6

82.5

88.3

Project Team Surveys

Emerson Confidential

3

2

4

1 1 1 1

5

4

2

1 1

3

4

2 2 2

1

4 4

3

1 1

0

2

4

6

91-100 % 81-90 % 71-80 % 61-70 % 51-60 % 41-50 % 31-40 % 21-30 % 11-20 % 0-10 %

Time given for other corporate initiatives/personal growth Received feedback on performance

Opportunity to learn & grow PM or Technical Lead discussed my progress/performance

Agenda

• Emerson and Canada Engineering Center Overview

• Organizational Alignment

• Team Development

• Project Management & Quality Management

• Performance Metrics

• Continual Improvement

46

Continual Improvement

• Performance Objectives

• Communities of Practice (CoP) Team Initiatives

• Global PMO

• Continual Improvement Council

• Project Audits and Corrective Actions

• Customer Satisfaction and Loyalty Assessments

• Project Lessons Learned

We strive for

continual

improvement

across our

organization

Communities of Practice

Emerson Confidential

Lessons Learned

49

Summary

Project Management Excellence elements:

• A proven model – PMI PMBoK

• Organizational alignment - Leadership

• Frequent and consistent communication

• Competent people – Talent Management

• Quality Management System

• Measuring performance

• Continual improvement culture

Learn more athttp://emerson.com/en-us