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Typical FPSO Development( ‘wet trees’ , weather dependent production )
FPSO
Shuttle
TankerRisers
Flowlines
Subsea Wells &
Manifold
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Nov 2016, SPE Seminar
Project Management of Complex Projects
Characteristics of complex offshore oil & gas proj ects
� tight timescales with heavy overlap of work activities� high continuous and total expenditure� extended, possibly global supply chains� construction in disparate locations� very early procurement of key materials and services (installation vessels) to secure schedule� significant risks and uncertainties
• The cost of doing work offshore is so high that a large part ( and in huge physical
chunks) is done onshore and shipped to its offshore location to be installed by
complex and large installation vessels. These vessels, of limited supply ad huge
cost, have to be signed up almost at the beginning of the project, well before
design is complete.
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Nov 2016, SPE Seminar
Professional project management bodies
• US – Project Management Institute, PMI
• UK – Association for Project Management, APM
• European – International Project Management Association, IPMA
� Best practices embodied in their ‘Bodies of Knowledge’ (BoK’s) and competency framework
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P.K. Garga - UAL Nov 2016, SPE Seminar
Project management
“Project management is the process by which projects are defined planned, monitored, controlled and delivered such that the agreed benefits are realised ……. Projects bring about change and project management is recognised as the most efficient way of managing such change.”
“Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of project management processes of initiating, planning, executing, monitoring & controlling and closing.”
• To know where you are against the plan at any given point in time,
- what have you achieved?
- how much you spent (or resources used) in getting there?
- how efficient and effective were you at getting there?
- what remains to be done?
• To be able to forecast what the completion duration and final cost might be
• To assist you in focusing on the key future management actions you need to take to redress any shortfalls or slippage
• To provide feedback to all your stakeholders (communications management)
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Nov 2016, SPE Seminar
Stakeholder management
Stakeholders – anyone with an interest in the project
• Identify stakeholders
• Prioritise stakeholders
• Communicate to get their opinions
early and to gain their support
• Gain trust and understanding
• Requires continuous dialogue
Keep satisfied; don’t bore
them
High
Pow
er
Fully engage;Communicate
often
Monitor; but do not bore
with excessive
information
Keep informed, talk to them, can often be very helpful
LowLow Interest High
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Nov 2016, SPE Seminar
Importance of Managing Stakeholders
• By definition there will be stakeholders external to the project delivery team. They will also need to be managed as they can influence the outcome of the project ( positively or negatively).
• The project team is not able to (and sometimes should not) communicate its issues to all stakeholders.
• Discussions on strategic issues can distract the attention of the project delivery team. The latter needs clear and timely decisions to stay in clear delivery mode.
• Some commercial and personnel related sensitive actions can only be taken and managed by a senior company person (sponsor).
‘Successful project management means successful pol itical management also’
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Nov 2016, SPE Seminar
What is risk and risk management
Risk is :
• “An uncertain event, feature, activity, or situation that
can have a positive or a negative effect on objectives”
• Risk = opportunities + threats
Risk management is :
• “A formal process that enables identification, assessment, planning and management of risks”
• A formal approach is better than just an intuitive approach
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Nov 2016, SPE Seminar
Quantifying risks
• Impact (I) is the magnitude of the consequence
• Probability (P) is the likelihood (chance) of occurrence
• Expected Value = I mpact (I) x Probability (P)
• Qualitative techniques use a rating system of adjectives or ranges to describe I&P (e.g. high, medium, low or 1 – 5 scale)
• Quantitative techniques use Expected Values to describe probable monetary value
- both allow individual risks to be graded to target management action
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Nov 2016, SPE Seminar
Risks are mitigated or realised by taking action(effort, resources), not by ambitious words alone!
Managing change
• Change happens for many reasons and in many forms
• An organised systematic approach is needed to manage the positive or negative effects of the change on the project baseline objectives of cost, time and quality.
• Un-managed and ‘creeping’ changes usually cause havoc at the latter stages of a project. Often the cause of the major disputes between client and supplier.
• Documenting change is an important aspect of scope and configuration control, as well as being good commercial practice.
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Nov 2016, SPE Seminar
APM - PM competence framework
Contextual(self and business
environment)e.g. GovernanceHSSECultural AwarenessCorporate StrategyBusiness Case