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Web Class 3: Project Controls (Establishing baselines, set process, forecasting and trending)

We will be recording this webclass and attendees will be able to view a copy of the recording for up to 2 weeks after the session.

Project ControlsEstablishing baselines, set process, forecasting & trending

Trainer: Saeed Shalbafan

Introducing Saeed Shalbafan

► A member of Aquenta’s Planning and Project Controls team

► Experienced Project Planner with over 21 years experience

► Experience spans a wide variety of infrastructure, rail, engineering,

manufacturing, logistics and supply chain projects located throughout

Australia and the Middle East

► Formally trained and experienced as Planner with Primavera P6 and project

controls principles

► Committee member of professional industry bodies including: Project

Management Institute and Engineers Australia, was an executive member of the

Centre for Engineering Leadership and Management (CELM Sydney-Engineers

Australia)

► Facilitator at postgraduate level, a PhD researcher in the University of

Technology Sydney. Active in professional and academic forums and conferences

for organisation project management and project portfolio management

Presentation Outlines

Introduction

► Organisation requirements for program development ► Project / organisation maturity► Choose the right tool for project program development

► Develop Program Assumptions► Identify scope► Key program assumptions

► Develop a baseline program ► Develop Work Breakdown Structure (WBS)► Meaning and types of baseline

Presentation Outlines

Introduction

► Control measures to maintain a baseline on track► Tools to capture progress► Progress report & key messages► S-curve and Earned Value Analysis

► Case study summary► Project overview► Methodology and controls tactics

Maturity Assessment

Project / Organisation Maturity

► Organisation maturity in project controls is evident with process, knowledge, capabilities and routines to develop and manage project controls measures

► Tools and methodologies vary depending on several factors including organisation maturity, strategic direction and IT infrastructure

► Organisation culture, skills, resources and competences are important factors to identify tools to develop and maintain baseline program and project controls measures

Scope identification

Program Assumptions

► Scope of work statement► Key dates and program requirements ► Specifications and methodology► Design drawings► Delivery strategy

Work Breakdown Structure

Project WBS

WBS is a hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables (PMBOK, 2013)► To develop WBS, project requirements, key dates and scope statement

are needed► In some industries, template for project WBS can be used ► First level of WBS, is always the project name or final product ► Breakdown can be up to different levels► WBS shall be used to unify scope, cost, schedule and budget per work

elements

Key Program Assumptions

Program Assumptions

► Productivity rates ► Resources ► Working calendars► Project staging plan► Client requirements► Funding plans► Activity types (Resource Dependent, Task Dependent)► Duration types (Fixed Durations and Units/Fixed Duration and

Units/Time)

Q & A

Set up steps

Baseline program

► Identify agreed scope with the project team ► Establish a proper WBS, define and agree programming methodology

and project controls plan► Define the calendar, rates for cost and productivity and primary

constraint to the execution of the program ► Agree on WBS dictionary, resource breakdown structure and cost

accounts ► Document scope of project and a high level work breakdown structure

(level 6)► Identify key dates and milestones and assurance review against

project objectives ► Carry out constructability review to determine logic, duration and

resources

Set up steps

Baseline program

► Develop Work Breakdown Structure up to lowest level with available assumptions (recommended 6-9)

► Develop activity list for delivery of each WBS at the lowest level ► Estimate duration of activities, logic, resources and constructability

assumptions ► Finalise first draft of time plan ► Define cost breakdown structure aligned with WBS► Estimate project cost ► Review risk register and Identify time and cost related risks ► Determine the program contingency and level of confidence by running

probabilistic risk analysis on program and cost

Set up steps

Baseline program

► Present to the project team and final amendments to set the baseline program

► Cost and resource allocation to the program ► Set the program as a baseline (interim, signed off)► Develop controls measures agreed with the project leadership team

Q & A

PROJECT CONTROLS MEASURES

Controls Function in PM

► PMBOK defines Controls as “comparing actual performance with planned performance, analysing variances, assessing trends to effect trends improvements, evaluating possible alternatives and recommending appropriate corrective action as needed”.

► Key Project Controls Measures for Managing Projects 1. Cost 6. Scope2. Time 7. Stakeholder and Communication 3. Risk 4. Quality5. Procurement

Define Controls Measures

CONTROLS MEASURES

► Time and physical percentage complete are two most common measures

► Actual costs and resources can be measured against monthly histogram and S-curve to compare actual versus planned program

► What is S-curve? How does this work? Earned Value Techniques► Risk profile , program confidence

Typical Earned Value Graph

S-CURVE

Capture Actual Data

CONTROLS MEASURES

► Engagement and continuous communication at different organisation layers

► Keep formal and informal agenda to verify the progress report ► Consider minimum delay between release of data from sites and

report to the project board ► Tools to capture data such as site reports and inspections, weekly

program meeting memos, or automated data collection e.g. P6 team member, or document controls systems e.g. Teambinder

Tools and Techniques

Trends and Forecast

► S-curve for cost, or resource can be used in P6 Primavera or other software for trend analysis

► Variance on time and cost should be analysed together to generate meaningful results

► Support the project management team to identify corrective actions and mitigation measures

► Project contingency and confidence► Consistent controls measures can produce a favourite outcome for the

project implementation (e.g. Cost, Time, Risk)

Q & A

Project Life Cycle and Project Controls

Program Assumptions

A Complex Infrastructure Project

Case Study

► Developing Master Program using Primavera P6

Tools and Methods

Case Study

► Strategic delivery programs for pre-construction and construction stages► Integrated workstreams program► Key dates report including key milestones , planning approvals, delivery

strategies and governmental approvals► Integrated pre-tender master program

Agile PROJECT planning - Definitions and PRINCIPLES

Case Study

► Merriam-Webster (2009) defined agility as the capability of rapidly and cost efficiently adapting to changes. Some principles adapted to planning are:

► Iterative schedule development with limited and evolving scope ► Integrated and collocated team to facilitate communication and minimize

wasteful waiting times► Agenda based meeting to have brief and effective decision making without

wasteful time

Agile Project Planning - Onion FRAMEWORK

Agile Project PLANNING

A. Intra- Team Interaction

B. Inter- teams Interaction

C. Executives Interaction

D. External Interactions

E. International Peer Reviews

Work stream Incremental Development

Case Study

► Develop individual workstreams program with short and frequent meetings with individual team leaders

► Develop dependencies matrix for workstreams’ deliverables ► Integrate workstream programs based on interdependencies for

deliverables► Baseline key milestones extracted from integrated workstreams program

in P6► Develop weekly program / milestone updates with version controls ► Control progress of workstreams against expected deliverables through

interactive workshops in weekly integrated workstream meetings

concurrent development of master program

Case Study

► Primavera P6 on server as a collaborative tool► Clear accountability and individual ownership for developing program

activities ► Program adjustment based on the results of schedule risk analysis (Monte

- Carlo simulation)► Regular interactive workshops for involved programmers► Updates based on change of assumptions for design / construction

method / production rates► Version controls and document register

Programming Methodology

Case Study

► Standardised activity codes / resource codes► Templates for WBS , fundamental assumptions and program narratives► Templates for program layouts, contents and colour codes ► Program definitions for calendars, critical paths, resources histograms► Program risk and opportunity assessment , template reports► Program naming and convention including activity IDs

Benefits of Implementation – Achievements

Case Study

► Significant achievement of milestones for construction readiness phase► Reduced time to develop integrated master program► Quick response to change of project requirements and design

assumptions► Quality programs for pre-tender phase endorsed by international peer

reviews► Stakeholders satisfaction on integrated master program ► Smooth interface / contingency management between interdependent

contractors and public stakeholders

Q & A