KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Brown & Root - Condor

Project Management Development Course

PROJECT CONTROLS

DN-0307.PPT

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Agenda
Introduction
General Overview
Estimating
Planning/Scheduling
Cost Control

DN-0307.PPT

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Course Goals
Introduce the Project Controls Processes.
Identify the interfaces between Project Controls &
Project Management .
Show how to use Project Controls as a Management
tool to improve Project Execution.

DN-0307.PPT

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Project Management Role

To plan, direct & control the resources of People,
Money, Materials & Equipment.
To Execute a Project from beginning to end &
accomplish the projects pre-determined
contractual & profit making objectives.

DN-0307.PPT

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Project Controls Functions

RISK
MANAGEMENT

EST
IM

NT
E
M
U
DOC TROL
CON

ATIN
G

PROJECT
CONTROLS

PL
SC AN
HE NIN
DU G
LIN &
G

DN-0307.PPT

ST L
O
C RO
NT
O
C

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

MANHOUR
CONTROLS

PLANNING
&
SCHEDULIN
G

ATS & TIME

SHEETS
Project
Control
Systems
DOCUMENT
CONTROL

DMS 02

KBR Document Control Database

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COST
CONTROL

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Project Controls Process

Client / Brown & Root-Condor
Identify
Requirements

Project
Definition
Control

Subdivision
of Work

Quantification

Sequencing
of Work

Corrective
Action

Control
Management

Resource
Estimating

Resource
Scheduling/
Budgeting

Analysis

Forecasting

Performance
Evaluation

Project
Close Out

Accumulation
of
Expenditures

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Performance
Measurement

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Project Controls Process

Schedule & Budget Baseline

Progress Measurement & Monitoring

EFC Forecasting

Schedule Progress
Measurement &
Monitoring
Schedule
Forecast Update

Establish Project
Schedule
&
Control Budget
Baseline

Schedule
Forecast &
Re-Baseline

Commitments
incl V.Os
(Contract & P.Os)

Cost Progress
Measurement &
Monitoring

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Project Forecast

Estimate Final
Cost (EFC) Update

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Progress Control Loop

PLAN
ESTIMATE
& BUDGET
PROGRESS
THE WORK
& MONITOR
ANALYSE
CARRY OUT
WORK

REVIEW
STATUS &
REPORT

DN-0307.PPT

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Change Control Philosophy

END OR
RESUBMIT

NO
START
IDENTIFY
CHANGE

REGISTER &
REVIEW

ASSESS COST /
SCHEDULE
IMPACT

PROJECT
MANAGEMENT
APPROVAL ?

YES

END OR
RESUBMIT

PROCEED WITH
THE WORK
NO
YES

DETAILED
ESTIMATE

SUBMIT
FOR APPROVAL

CLIENT
APPROVED ?

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UPDATE
BASELINE

KBR Project Controls

Estimating Risk Planning / Scheduling Cost
@ Risk

Feasibility
Sanction

Cost
Risk Analysis

Design
Procure
Fabricate

RISK

Time
Cost
Quality

Risk

Safety
Monte Carlo

Construct
Install
Commission
Operate & Maintain
Decommission

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Risk Factors

Environmental
Base estimate
Scope definition
Technical complexity
Control systems
Politics
Industrial relations

Reputation
Location
Project novelty
Scope changes
Contract strategy
Contractor experience
Resources

Planning
SAMS

Availability

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

PERFORMANCE MEASURES

HOW DO WE KNOW IF SCHEDULE, MANHOURS & COSTS ARE ACCEPTABLE ?

COMMITMENT TO TARGET COST

PROJECT HISTOGRAM

100
PLANNED %

35

ACTUAL %

30

90

NUMBER OF MEN

% COMPLETE

80
70
60
50
40
30
20

25
20
15
10
5

10
0

01/04/97

TIME NOW
ACTIVITY
1

1.0

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15/04/97

22/04/97

29/04/97

PRODUCTIVITY

PROJECT SCHEDULE

08/04/97

06/05/97

13/05/97

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Hows my Project Progressing ?

What does the future look like ?

The problem is that the answer cannot be obtained

from any one chart or one piece of paper.
Hence the need to analyse many aspects of
the project data.
Management graphics by definition are high level &
therefore detailed information can not be obtained
from summary.
It needs to be fully understood how the various
management graphics are produced, to ensure that
there are not any misunderstandings about the
information they portray.
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KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Forecasting
PROJECT CONTROLS - MANAGEMENT REPORTING

TIME

MONEY

IS PRODUCTIVITY UP OR DOWN.
ARE DELIVERABLES BEING RELEASED TO PLAN.
ARE EXTERNAL FACTORS IMPACTING THE PLAN
ARE CRITICAL DELIVERIES BEING MAINTAINED
ARE PURCHASE ORDERS BEING RELEASED
TO PLAN.
ARE CRITICAL RESOURCES AVAILABLE &
ON SCHEDULE.
ARE CRITICAL ACTIVITIES BEING PROGRESSED.
ARE NEAR CRITICAL ACTIVITIES INCREASING
IN NUMBER.
WHAT ARE TIME EFFECTS OF THE ABOVE
QUESTIONS.

DOES PHYSICAL PROGRESS MATCH VOWD.

ARE MAJOR CONTRACTS VALUES TRENDING
FROM BUDGET.
ARE P.O. VALUES CHANGED FROM BUDGET.
ARE CHANGE ORDERS BEING ISSUED.
ARE SUPPLY MARKETS CHANGING
ARE THERE MAJOR CHANGES TO WORKSCOPE.
ARE THERE MAJOR EXCHANGE RATE
FLUCTUATIONS.
WHAT ARE THE COST EFFECTS OF THE ABOVE
QUESTIONS.

FORECAST

DN-0307.PPT

KBR Project Controls

Estimating Risk Planning / Scheduling Cost

How Project Controls Adds Value to

A Project
Establishing & maintaining a WBS for the project.
Development of realistic integrated programmes.
Development of realistic estimates & establishment
of accurate tracking & forecasting against agreed
budgets .
Identification & analysis of deviations & trends.
Keeping management informed of project status.
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KBR Project Controls

Estimating Risk Planning / Scheduling Cost

How Project Controls Adds Value to

A Project - Continued
Facilitate decision making on overall project
directives.
Provision of effective tools for change control
management.
Identification & management of project risks.
Focal point & information centre for the schedule &
financial status of the project

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KBR Project Controls

Estimating Risk Planning / Scheduling Cost

Whos Responsible for Planning, Directing &

Controlling the Project
Project
Manager

+
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Project
Team