kpi lister sto 061411
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KIP\'s for Shutdowns, Turnarounds and Outages...TRANSCRIPT
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KPI’s for Measuring& Controlling STO Projects
E.J. (Ted) ListerLister Management Inc.
• Project Controls / Project Management
• Definitive Definitions
• The 4+ Key Performance Indicators
• Measuring Performance
• Trending, Forecasting
• Questions
Agenda
Slide 3
Project Controls / Project Management
Overview…
• You must be able to measure, in real-time, the status of your project based on KPI’s and their set Targets
• Projects need to be both controlled and managed
• It’s important to understand what you can control, and what you cannot; what you can manage, and what you cannot
• A method of measuring needs to be established for both controlling and managing the project
Slide 4
Project Controls / Project Management
Overview – cont’d…
• Establish Project Controls at project kick-offo Work-list / Work-scopeo Budgeto What-if scenarios / Risk Managemento KPI’s and Targets
• Project Management begins at Work-list cut-offo Work Management (Direct)o Resource Management (Indirect)
Slide 5
Definitive Definitions
• Planned Valueo Estimate of Wrench-hours for an activity
• Earned Valueo % complete of a planned activity based on field status
• Actual Valueo Cost measurement; also used to measure worker performance
• Longest Jobo Zero-float, determines the duration of the outageo Not to be confused with critical path, which accounts for risk
Slide 6
Definitive Definitions – cont’d
• S-Curveo Chart of values distributed along wrench-hour/time x y axis
• Baselineo A snapshot of the initial plan/schedule before feed-out
• Performanceo Earned vs. Planned, Actual vs. Earned, Actual vs. Planned
• What-if Scenarioso Leveling a programmed plan to determine the best case
scenario based on cost, schedule duration, and wrench-hours
Slide 7
The 4+ Key Performance Indicators
In Order of Magnitude…
1. Safety, Health & Environment
2. Worker Performance Wrench-time (76.7% direct in a 10 hour shift) QA/QC (rework)
3. Schedule (earned vs. planned)
4. Cost (actual vs. planned) Direct Indirect
Slide 8
The 4+ Key Performance IndicatorsSetting Key Performance Targets…
1. Safety, Health & Environment = +5000 points
2. Worker Performance Wrench-time (Direct) = 75% QA/QC = 0 Rework
3. Schedule (Feed-in – Feed-out) = 31 Days
4. Cost = $41.2M Direct (Wrench-hours x $45.00/h) = $18.7M Indirect (115% of Direct) = $21.5M
Planning, Pre-Work, Post, Contingency = $1.5M
Slide 9
The 4+ Key Performance Indicators
Safety, Health & Environment…
• Set positive targets for SH&Eo Earn points each shift for 0 incidents (150 points)o Earn points for ProAct card reporting (150 points)o Earn points for audits (200 points)o Lose points for recordable incidents o A lost-time incident takes you into the
negative with no chance of recoveryo Incentives are based on positive numbers
Slide 10
The 4+ Key Performance Indicators
Worker Performance…
• Set realistic direct wrench-time for worker performanceo No more than 75%o Remember, once you determine direct wrench-hours all indirect
resources and logistics are based on this numbero If you don’t use strategic planning to support this number your
chances of achieving this target will be diminishedo Use productivity factors based on: season, location, worker
experience, resource availability (inspectors, cranes, etc.)
Slide 11
The 4+ Key Performance Indicators
Schedule…
• Establish a schedule in your planning software with a clearly defined WBS (Work Breakdown Structure) and Phaseo The WBS is a vertical hierarchy of physical locationso The Phase is a horizontal section of work types
• Use What-if Scenarios to determine the longest job (series of planned activities with no float)
• Control the longest job; manage the remaining tasks
Slide 12
The 4+ Key Performance Indicators
Cost…
• The cost is based on Work-scope + Indirects + Contingency = Budget
• Costs can only be controlled through Work-scope changes
• Costs are managed, not controlled, through performance
• Costs need to be measurable based on direct and indirect; found and added; WBS and Phase
Slide 13
Measuring Performance
History Focus on Work Ahead
Current Day
STA
TU
S =
% C
OM
PL
ET
E o
r M
HR
S
100%Or Total Planned Man-hours
OriginalMan-hour
Overrun
OriginalBaselineScheduledMan-hours
ScheduleVariance New
ScheduledMan-hours
New schedule affected by activities not completed as per schedule plus added and extra work
Schedule Slippage
EarnedMan-hours
Original Target New Target
TIME
Project Performance S-Curve…
• Baseline Planned
• Earned Value - WP
• Actual Value - $
• Found/Added Work
• Historical Trend
• Forecast
Slide 14
Measuring Performance
Baseline…
• Save your project as a baseline comparative project just prior to feed-out
• Use the baseline for variance reporting and historical reference
Slide 15
Measuring Performance
Updating…
• It imperative that field status reporting is done prior to the end of each shift for each scheduled activity
• The programmer will update the project in the planning software as a percentage complete (earned value)
• Actual hours can be tracked in the planning software, or accounting software, from timesheets
• The programmer must advance the project to the current status date and time
Slide 16
Measuring Performance
Updating – cont’d…
• No uncompleted work can ever appear behind the status date line
• Use earned value % complete; do not try to capture actual start and finish times
Slide 17
Trending and Forecasting
Using S-Curve Data…
• Trending performance should begin between day 3 – 5 to establish data to forecast probable target completions
• Use trending and forecasting to control the project Work-scope
Slide 18
Trending and Forecasting
Reporting…
• A daily one-page report should be generated to illustrate the status of each KPI
• Additional information can also be included:o New Critical, All Criticalo Found Work, New Work, Delayso Weather, POB, etc.
