Engineering Project Management and planning

8/9/2019 Engineering Project Management and planning

1/399

8/9/2019 Engineering Project Management and planning

2/399

8/9/2019 Engineering Project Management and planning

3/399

8/9/2019 Engineering Project Management and planning

4/399

8/9/2019 Engineering Project Management and planning

5/399

8/9/2019 Engineering Project Management and planning

6/399

8/9/2019 Engineering Project Management and planning

7/399

8/9/2019 Engineering Project Management and planning

8/399

8/9/2019 Engineering Project Management and planning

9/399

8/9/2019 Engineering Project Management and planning

10/399

8/9/2019 Engineering Project Management and planning

11/399

8/9/2019 Engineering Project Management and planning

12/399

8/9/2019 Engineering Project Management and planning

13/399

8/9/2019 Engineering Project Management and planning

14/399

8/9/2019 Engineering Project Management and planning

15/399

8/9/2019 Engineering Project Management and planning

16/399

8/9/2019 Engineering Project Management and planning

17/399

8/9/2019 Engineering Project Management and planning

18/399

8/9/2019 Engineering Project Management and planning

19/399

8/9/2019 Engineering Project Management and planning

20/399

8/9/2019 Engineering Project Management and planning

21/399

8/9/2019 Engineering Project Management and planning

22/399

8/9/2019 Engineering Project Management and planning

23/399

8/9/2019 Engineering Project Management and planning

24/399

8/9/2019 Engineering Project Management and planning

25/399

8/9/2019 Engineering Project Management and planning

26/399

8/9/2019 Engineering Project Management and planning

27/399

Possibleaddedvalue

Pre-project Project Operation

Decidewhat you

want

Designand

construction

Earning

Opportunity

Costof late

change

8/9/2019 Engineering Project Management and planning

28/399

8/9/2019 Engineering Project Management and planning

29/399

8/9/2019 Engineering Project Management and planning

30/399

8/9/2019 Engineering Project Management and planning

31/399

8/9/2019 Engineering Project Management and planning

32/399

8/9/2019 Engineering Project Management and planning

33/399

8/9/2019 Engineering Project Management and planning

34/399

8/9/2019 Engineering Project Management and planning

35/399

8/9/2019 Engineering Project Management and planning

36/399

   V  a   l  u  e  m  a  n  a  g  e  m  e  n   t

   V  a   l  u  e  p   l  a  n  n   i  n  g

   V  a   l  u

  e  e  n  g   i  n  e  e  r   i  n  g

   V  a   l  u  e  r  e  v   i  e  w

   P  r  e  -   i  n  v  e  s   t  m  e

  n   t  p   h  a  s  e

   U  n   b  u   d  g  e   t  e   d

   B  u   d  g  e   t  e   d  p  r  o   j  e  c   t  s

   I  n  v  e  s   t  m  e  n   t  p   h  a  s  e

   I  m  p   l  e  m  e  n   t  a   t   i  o  n

   O  p  e  r  a   t   i  o  n

   E  n   d

  o   f  a  s  s  e   t  s

   C  o  n  c  e  p   t

   P  r  e  -   f  e  a  s   i   b   i   l   i   t  y

   F  e  a  s   i   b   i   l   i   t  y

   A  p

  p  r  a   i  s  a   l

   P  r  o  c  u  r  e  m  e  n   t

   t  r  a   i  n   i  n  g

   O  p  e  r  a   t   i  o  n

   D  e  c  o  m  m   i  s  s   i  o  n   i  n  g

   C   l  o  s  e  o  u   t

   D  e   f   i  n  e

  p  r  o   j  e  c   t

   D  e   f   i  n  e  p  r  o   j  e  c   t

  a  p  p  r  o  a  c   h

   D  e  v  e   l  o  p

  a  p  p  r  o  a  c   h   /   d  e  s   i  g  n

   F  e  e   d   b  a  c   k

   D

  e  v  e   l  o  p

   d

  e   t  a   i   l  e   d

  a  p  p  r  o  a  c   h

   P  r  o  c  u  r  e  m  e  n   t

  a  n   d   t  r  a   i  n   i  n  g

   H  a  n   d  o  v  e  r   /  p  o  s   t  p  r  o   j  e  c   t  e  v  a   l  u  a   t   i  o

  n

   N  e  x   t  p  r  o   j  e  c   t

   S t  r  a t  e  g  y :   C  o  r  p  o  r  a t  e ,   B  u  s i  n  e  s  s   &   P  r  o j  e  c t

8/9/2019 Engineering Project Management and planning

37/399

8/9/2019 Engineering Project Management and planning

38/399

8/9/2019 Engineering Project Management and planning

39/399

8/9/2019 Engineering Project Management and planning

40/399

8/9/2019 Engineering Project Management and planning

41/399

8/9/2019 Engineering Project Management and planning

42/399

8/9/2019 Engineering Project Management and planning

43/399

8/9/2019 Engineering Project Management and planning

44/399

8/9/2019 Engineering Project Management and planning

45/399

8/9/2019 Engineering Project Management and planning

46/399

8/9/2019 Engineering Project Management and planning

47/399

8/9/2019 Engineering Project Management and planning

48/399

8/9/2019 Engineering Project Management and planning

49/399

   P   R   O   J   E   C   T   A   P   P   R   A   I   S   A   L

   P   R   O   J   E   C   T   I   M   P   L   E   M   E   N   T   A   T   I   O   N

   O   P   E   R   A

   T   I   O   N

   O   F   T   H   E   A   S   S   E   T

INITIATION

   P   R   O  J   E   C   T   A   C   C   O   U   N   T   B   A  L   A   N   C   E

   M   O   N   E   Y

   T   I   M   E

   D   E   F   I   N   I   T   I   O   N

   C   O   N   C   E   P   T

   D   E   S   I   G   N

   C   O   N   S   T   R   U   C   T   I   O   N    C

   O   M

Regulatory approval 

Planning 

approval 

Contract award 

–  +

SANCTION

COMPLETION

   C  o  s   t

   C  o  s   t  a  n   d   b  e  n  e   f   i   t

8/9/2019 Engineering Project Management and planning

50/399

8/9/2019 Engineering Project Management and planning

51/399

8/9/2019 Engineering Project Management and planning

52/399

   P  o  s  s   i   b   i   l   i

   t   i  e  s  o   f

  r  e   d  u  c   i  n  g

  c  o  s   t

   P  e  r  c  e  n t  a  g  e  c  o  s t

   I  n  v  e  s   t  m  e  n   t

   d  e  c   i  s   i  o  n

   A  c  c  u  m  u   l  a

   t  e   d  a  m  o  u  n   t

  o   f   i  n  v  e  s   t  m

  e  n   t

   D  e  c   i  s   i  o  n  s   t  e

  p  s

   A   P   P   R   A   I   S   A   L

   I   M   P   L   E   M   E   N   T   A   T   I   O   N

   P  r  e  p   l  a  n  n   i  n  g

   P   l  a  n  n   i  n  g

   D  e  s   i  g  n  a  n   d

  c  o  n  s   t  r  u  c   t

  e  q  u   i  p

  m  e  n   t

   I  n  s   t  a   l   l  a   t   i  o

  n  o   f  e  q  u   i  p  m  e  n   t

   T   i  m  e

8/9/2019 Engineering Project Management and planning

53/399

8/9/2019 Engineering Project Management and planning

54/399

8/9/2019 Engineering Project Management and planning

55/399

8/9/2019 Engineering Project Management and planning

56/399

8/9/2019 Engineering Project Management and planning

57/399

8/9/2019 Engineering Project Management and planning

58/399

8/9/2019 Engineering Project Management and planning

59/399

8/9/2019 Engineering Project Management and planning

60/399

8/9/2019 Engineering Project Management and planning

61/399

8/9/2019 Engineering Project Management and planning

62/399

8/9/2019 Engineering Project Management and planning

63/399

8/9/2019 Engineering Project Management and planning

64/399

8/9/2019 Engineering Project Management and planning

65/399

8/9/2019 Engineering Project Management and planning

66/399

8/9/2019 Engineering Project Management and planning

67/399

8/9/2019 Engineering Project Management and planning

68/399

8/9/2019 Engineering Project Management and planning

69/399

8/9/2019 Engineering Project Management and planning

70/399

8/9/2019 Engineering Project Management and planning

71/399

8/9/2019 Engineering Project Management and planning

72/399

8/9/2019 Engineering Project Management and planning

73/399

8/9/2019 Engineering Project Management and planning

74/399

8/9/2019 Engineering Project Management and planning

75/399

8/9/2019 Engineering Project Management and planning

76/399

8/9/2019 Engineering Project Management and planning

77/399

8/9/2019 Engineering Project Management and planning

78/399

8/9/2019 Engineering Project Management and planning

79/399

8/9/2019 Engineering Project Management and planning

80/399

8/9/2019 Engineering Project Management and planning

81/399

8/9/2019 Engineering Project Management and planning

82/399

8/9/2019 Engineering Project Management and planning

83/399

8/9/2019 Engineering Project Management and planning

84/399

8/9/2019 Engineering Project Management and planning

85/399

8/9/2019 Engineering Project Management and planning

86/399

8/9/2019 Engineering Project Management and planning

87/399

8/9/2019 Engineering Project Management and planning

88/399

8/9/2019 Engineering Project Management and planning

89/399

8/9/2019 Engineering Project Management and planning

90/399

8/9/2019 Engineering Project Management and planning

91/399

8/9/2019 Engineering Project Management and planning

92/399

8/9/2019 Engineering Project Management and planning

93/399

8/9/2019 Engineering Project Management and planning

94/399

8/9/2019 Engineering Project Management and planning

95/399

8/9/2019 Engineering Project Management and planning

96/399

8/9/2019 Engineering Project Management and planning

97/399

8/9/2019 Engineering Project Management and planning

98/399

8/9/2019 Engineering Project Management and planning

99/399

8/9/2019 Engineering Project Management and planning

100/399

8/9/2019 Engineering Project Management and planning

101/399

8/9/2019 Engineering Project Management and planning

102/399

8/9/2019 Engineering Project Management and planning

103/399

8/9/2019 Engineering Project Management and planning

104/399

8/9/2019 Engineering Project Management and planning

105/399

8/9/2019 Engineering Project Management and planning

106/399

8/9/2019 Engineering Project Management and planning

107/399

8/9/2019 Engineering Project Management and planning

108/399

8/9/2019 Engineering Project Management and planning

109/399

8/9/2019 Engineering Project Management and planning

110/399

8/9/2019 Engineering Project Management and planning

111/399

8/9/2019 Engineering Project Management and planning

112/399

8/9/2019 Engineering Project Management and planning

113/399

8/9/2019 Engineering Project Management and planning

114/399

8/9/2019 Engineering Project Management and planning

115/399

8/9/2019 Engineering Project Management and planning

116/399

8/9/2019 Engineering Project Management and planning

117/399

8/9/2019 Engineering Project Management and planning

118/399

8/9/2019 Engineering Project Management and planning

119/399

8/9/2019 Engineering Project Management and planning

120/399

8/9/2019 Engineering Project Management and planning

121/399

8/9/2019 Engineering Project Management and planning

122/399

8/9/2019 Engineering Project Management and planning

123/399

8/9/2019 Engineering Project Management and planning

124/399

Maximum A

Most likely B

Minimum C   E  s   t   i  m  a   t  e   d  r  a  n  g  e  o   f  c  o  s   t  s   (   £  m   )

Actualcost

Feasibility studyDesign

TenderConstruction Claims

settlement

A

B

C A

B

C

Feasibilitystudy

Tender SettlementA B C

8/9/2019 Engineering Project Management and planning

125/399

8/9/2019 Engineering Project Management and planning

126/399

8/9/2019 Engineering Project Management and planning

127/399

8/9/2019 Engineering Project Management and planning

128/399

8/9/2019 Engineering Project Management and planning

129/399

8/9/2019 Engineering Project Management and planning

130/399

8/9/2019 Engineering Project Management and planning

131/399

8/9/2019 Engineering Project Management and planning

132/399

8/9/2019 Engineering Project Management and planning

133/399

8/9/2019 Engineering Project Management and planning

134/399

8/9/2019 Engineering Project Management and planning

135/399

8/9/2019 Engineering Project Management and planning

136/399

8/9/2019 Engineering Project Management and planning

137/399

8/9/2019 Engineering Project Management and planning

138/399

8/9/2019 Engineering Project Management and planning

139/399

8/9/2019 Engineering Project Management and planning

140/399

8/9/2019 Engineering Project Management and planning

141/399

8/9/2019 Engineering Project Management and planning

142/399

8/9/2019 Engineering Project Management and planning

143/399

THE PRESENTSITUATION

THE OBJECTIVE

Estimated cost

Actual cost

Achievable cost

Realistic estimate ofprobable costshowing tolerance

Apparent cost overrun 

Actual cost overrun due to: • Inefficiency • Lack of resources • Inadequate investigation 

• Lack of funds etc. caused by unrealistic estimate 

Lowside tolerance 

Most probable estimate 

Highside tolerance 

8/9/2019 Engineering Project Management and planning

144/399

8/9/2019 Engineering Project Management and planning

145/399

8/9/2019