Executing large EPC/EPCM Projects using Scrum …pmisacconference.com/2017/wp-content/...EPCM-Scrum.pdf · executing large epc/epcm projects using scrum values and principles $billion

EXECUTING LARGE EPC/EPCM PROJECTS USING SCRUM VALUES AND PRINCIPLES

$BILLION AGILE

$BILLION AGILE

WHAT PROBLEMS NEED SOLVING?▸ Unclear priorities, roles

▸ Working in silos

▸ Lack of visible progress on what’s

important and why

▸ Lack of accountability to each other

▸ Lack of understanding of true state

of project

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SESSION OUTLINE

▸Background on Gas Plants, EPC/M projects, and WHY Scrum?

▸Applying Scrum to a Large ($1B) EPC Project

▸Scrum Values, Roles, Artefacts, Events

▸Results

▸Applying Scrum to a Large ($3B) EPCM Program

▸Approach to Multiple Organizational Cultures and Concurrent Projects

▸Results

▸Taking it another step

NATURAL GAS PROCESSING PLANTS AND LARGE EPC/EPCM PROJECTS

BACKGROUND

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WHAT’S A GAS PLANT?▸ Processing of Natural Gas

▸ Takes feed stock from surrounding

wells and removes water, sand,

sulphur and other hydrocarbons

▸ 400 million cubic feet per day

… times ~5 … every HOUR

$BILLION AGILE

$BILLION AGILE

ENGINEERING, PROCUREMENT, & CONSTRUCTION PROJECT

Engineering: Deliverables are detailed design and resultant drawings

for equipment procurement and construction

Procurement: Deliverables are POs resulting in materials on site when

they are needed

Construction: Deliverable is an operating gas processing plant built

safely

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COST OF DELAY

▸ Delays in Reviews/Approvals

▸ things don’t get engineered or

purchased fast enough

▸ therefore they don’t arrive on

time

▸ therefore less time for

construction

▸ higher risk of delayed ROI

$BILLION AGILE

WHAT PROBLEMS NEED SOLVING?▸ Unclear priorities, roles

▸ Working in silos

▸ Lack of visible progress on

what’s important and why

▸ Lack of accountability to each

other

▸ Lack of understanding of true

state of project

3 PILLARS OF SCRUM

SOUNDS LIKE THE

TRANSPARENCY, INSPECTION, AND ADAPTATION

BUILDING A $B GAS PLANT

APPLYING SCRUM VALUES/PRINCIPLES TO AN EPC PROJECT

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APPLYING SCRUM VALUES

scrum.org

STACK RANK PRIORITIZATION OF ISSUES AND MINIMIZING WIP

FOCUS

REGULAR FEEDBACK LOOPS ON HOW WE WORK TOGETHERCOURAGE

OPENNESS

TRANSPARENT ITERATIVE

PLANNING AND INSPECTION

WORKING AGREEMENTS

RESPECT

COMMITMENT TO GOALS / OUTCOMES NOT PARTICULAR SOLUTIONS

COMMITMENT

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APPLYING SCRUM ROLES

AN EXISTING ROLE CALLED THE PROJECT MANAGERRESPONSIBLE FOR REGULARLY ESTABLISHING THE PRIORITIES AND CONTEXT FOR THE TEAM

PRODUCT OWNER

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A NEW ROLE WE CALLED A TEAM FACILITATOR INITIALLY RESPONSIBLE FOR HELPING THE TEAM KEEP AN AGILE MINDSET AND COORDINATING THE TRANSPARENCY OF GOALS, PROGRESS AND IMPEDIMENTS.

SCRUM MASTER

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A GROUP OF MULTIDISCIPLINARY SPECIALISTS JOINTLY RESPONSIBLE FOR PRODUCING VALUABLE DELIVERABLES TO BE CONSUMED BY THE CONSTRUCTORS

DELIVERY TEAM

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APPLYING SCRUM ARTEFACTS▸ Product Backlog

▸ Sprint Backlog

▸ Product Increment

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PRODUCT (PROJECT ISSUE) BACKLOG

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PRODUCT (PROJECT ISSUE) BACKLOG

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SPRINT BACKLOG

‘PRODUCT’ INCREMENT

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APPLYING SCRUM EVENTS▸ Sprint

▸ Sprint Planning

▸ Daily Scrum

▸ Sprint Review

▸ Sprint Retrospective

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ITERATION PLANNING

DAILY STAND-UP

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▸What we accomplished, what has been actualized in the

schedule

ITERATION REVIEW

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ITERATION RETROSPECTIVE

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RESULTS

▸ We were able to gauge progress

based on empirical evidence …

rather than “it’s on track until it’s not”

▸ We were able to ensure that the

team regularly understood what the

project priorities were that

superseded their respective

discipline priorities

▸ Transferred techniques to site for

Turnover

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RESULTS

▸Priority issue cycle time was

reduced by a factor of 3.

▸Reduced the overall Project

Cycle time by 5-10%

▸ The project management team

was able to maintain the

original project schedule until

the plant was sold.

BUILDING A PROGRAM OF EPCM GAS PLANTS

APPLYING SCRUM VALUES/PRINCIPLES TO EPCM

$BILLION AGILE

RESULTS▸Plant 1/3

▸G2S 38 days EARLY

▸Plant 2/3

▸G2S 86 days EARLY

▸Plant 3/3

▸G2S 167 days EARLY

▸Program > 10% UNDER budget

$BILLION AGILE

▸Design one build many

▸Concurrent activities

▸Execute vs Oversight

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$BILLION AGILE

$BILLION AGILE

APPROACH TO CULTURE▸ Started as Traditional-based

Execution and Scrum-based

Oversight … NOPE

▸ Attempt to shift to a new culture …

Mission, Vision, Values … Patrick

Lencioni

▸ Transition ownership of Scrum

approach to EPC

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APPROACH TO COMMUNICATION▸ Scrum of Scrums approach to

Program priorities / roadblocks

▸ Applying lessons to successive

projects in program sprint to sprint

▸ 24 hr rule

▸ Excel, screen sharing, telephone …

still not as good as situation room

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APPROACH TO WORK PRODUCT▸ Iterative ‘just enough’ model reviews

▸ Breakdown/breakthrough model

▸ Seeing the gap between what is

predictable and what is desired

▸ Challenging the status quo

▸ Committing to exceed

“THE RESULT OF APPLYING AGILE AND BREAKDOWNS IS THE REALIZATION THAT CHALLENGING THE STATUS QUO AND USING NON-LINEAR THINKING IS REQUIRED FOR SUCCESS. THIS DOESN’T SHOW UP IN A GANTT CHART.”

Team Survey commentary

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$BILLION AGILE

RESULTS▸Plant 1/3

▸G2S 38 days EARLY

▸Plant 2/3

▸G2S 86 days EARLY

▸Plant 3/3

▸G2S 167 days EARLY

▸Program > 10% UNDER budget

THE FUTURE OF AGILITY IN EPC/M PROJECTS

Source: Leighton Winkler

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THE FUTURE IS MINDSET OVER MECHANICS

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AN AGILE MINDSET MIGHT ALLOW US TO …▸Automate the schedule progress update process to minimize

the time it takes to understand progress [this is akin to

continuous integration/testing]

▸ Iteratively review and update the schedule logic to ensure it

is current and reflects today’s reality [this is akin to release

planning]

▸Use a floating and fluctuating end date (as scope is usually

fixed) to allow the impacts of changes to be seen

immediately [this is akin to release planning]

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DECLARATION OF INTERDEPENDENCE (PMDOI.ORG)▸Agile and adaptive approaches for linking people, projects and value

▸We increase return on investment by making continuous flow of value our focus.

▸We deliver reliable results by engaging customers in frequent interactions and shared

ownership.

▸We expect uncertainty and manage for it through iterations, anticipation, and

adaptation.

▸We unleash creativity and innovation by recognizing that individuals are the ultimate

source of value, and creating an environment where they can make a difference.

▸We boost performance through group accountability for results and shared

responsibility for team effectiveness.

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IN CLOSING

▸Scrum is about feedback loops; ITERATIVELY inspecting and

adapting:

▸What we work on

▸How we work together

▸Scrum CAN be applied outside of software with substantial

benefit

▸Scrum’s success depends on modeling specific values and a

growth mindset

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MORE QUESTIONS?

▸ Simon Orrell, P.Eng. PMP CEC

▸ (403) 630-6442

▸ simon@snowdolphin.com

▸ www.snowdolphin.com

▸ @snowdolphin